Mathematics · Operations Management

A cost accountant is implementing Lean System principles in a large public sector bank's back-office operations. Consider the following statements about the application of Lean in the service sector: Statement 1: The waste of Inventory (Muda) in a bank's back-office is best exemplified by having excessive physical documents, redundant digital files, or too many unused pre-printed forms. Statement 2: The Just-in-Time (JIT) principle in loan processing means approving the loan just at the moment the customer walks in, regardless of verification status, to eliminate customer waiting time. Statement 3: In a bank, the waste of Overprocessing would include requiring excessive, non-value-adding signatures or multiple levels of redundant verification for a simple transaction. Statement 4: Kaizen in the service sector primarily involves expensive, large-scale, one-time technology investments to replace human labor with automation, which is an example of continuous process improvement. Which of the above statements is/are correct?