Just In Time Manufacturing aims to improve return on investment by reducing ________.
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → in process inventory and its associated costs
Option (1) quality variations within any business process — Incorrect. Reducing quality variations is the aim of Six Sigma, a data driven approach that saves time and money.
Option (2) in process inventory and its associated costs — Correct. Just In Time Manufacturing is an inventory management strategy. It cuts the stock of half-finished goods lying in the production process, and the cost of holding it. Less money stays locked up in stock, so the return on investment improves.
Option (3) wastes such as overproduction and waiting time — Incorrect. Cutting the seven wastes, such as overproduction and waiting time, is the focus of Lean Manufacturing.
Option (4) activities which add cost but not value — Incorrect. Kaizen defines waste as activities which add cost but not value. Removing them is one of the goals of Kaizen.
NCERT (2026-27 Edition):
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