A facility has a design capacity of 1000 units, an actual average output of 800 units, and an effective capacity of 850 units. What is its capacity utilization rate?

An Indian technology firm is using Lean principles for its software development process. The management is analyzing the cost reduction achieved versus the cost reduction planned for a new project, Project Orion, using Kaizen Costing. Statement 1: If the Planned Cost Reduction for Project Orion was 4,00,000 rupees, and the Actual Cost Reduction achieved was 5,00,000 rupees, the result is a Favorable Kaizen Variance of 1,00,000 rupees, indicating successful continuous improvement. Statement 2: The cost baseline for the Target Cost Reduction in Kaizen Costing is typically the Target Cost established in the design phase, and it is a fixed, non-changing benchmark. Statement 3: Kaizen Costing is primarily focused on process cost reduction and generally excludes costs related to marketing or research and development (R and D). Statement 4: The ultimate success of Kaizen Costing is measured not only by the cost reduction achieved but also by the sustained improvement in the key performance indicators (KPIs) like defect rates and lead time. Which of the above statements is/are correct?

A large manufacturing conglomerate is transitioning its traditional Push System supply chain to a JIT Pull System. The transformation requires a cultural and structural change. Consider the following statements on the necessary conditions for this change: Statement 1: The company must implement a total preventative maintenance (TPM) system to ensure near-zero machine breakdowns, as inventory buffers are minimized. Statement 2: Long-term contracts and collaborative relationships with a fewer number of high-quality suppliers must replace the multi-sourcing, price-driven procurement model. Statement 3: The company must embrace cellular manufacturing layouts and multi-skilled operators to enable flexible, quick changeovers and avoid idle time (waiting Muda). Statement 4: The system must retain a significant central warehouse to store finished goods, ensuring a quick response to unexpected surges in customer demand. Which of the above statements is/are correct?