Question

What is a 5-step management approach that organizes resources around the flow of business processes and that pulls units through those processes in response to customer orders?

a) Lean management
b) Agile methodology
c) Six Sigma approach
d) Just-in-time (JIT) production

Answer 1

The 5-step management approach described in the question is Just-in-time (JIT) production. JIT focuses on organizing resources around the flow of business processes and pulling units through those processes in response to customer orders. It helps reduce waste, improve efficiency, and minimize inventory.

Step-by-step explanation:

The 5-step management approach described in the question is known as Just-in-time (JIT) production. JIT is a management philosophy that aims to eliminate waste and improve efficiency by organizing resources around the flow of business processes and pulling units through those processes in response to customer orders.

This approach focuses on minimizing inventory and reducing lead times. By producing and delivering products in response to customer demand, JIT helps companies save costs associated with excess inventory and storage space.

For example, a car manufacturer implementing JIT production would receive customer orders, organize the production process accordingly, and deliver finished cars directly to customers without excess inventory in between.