Explain about the economics of scope of lean production, Operation Management

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Explain about the economics of scope of lean production.

Economies of scope:

It is possible while resources as like machinery or labour can be shared to manufacture various products for instants a condition where small type inputs can create a greater variety of outputs or products, by using multi skilled staff and multipurpose machinery. A larger business value and lower cost can be attained by jointly producing various products using similar common inputs for example, flexibility to diversify production without important investment needed, since scope exists to substitute resources through one process to another.


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