3. True/False Statements: Specify which statement is True or False in the table below. For those you specify as a false statement, very briefly explain why they are incorrect, and/or what change makes them a correct statement. ANSWER: # Statement True or False? (T/F) If you chose False, why? 1 Theoretical Capacity of a resource or process can never be less than the effective capacity of that resource or process

2 A significant gap between the effective capacity and the theoretical capacity of a resource indicates that the resource is well-utilized.

3 The time it takes from ordering a product online, to receiving it by the customer can be an internal or an external metric

4 The path with the highest number of steps in a process takes the longest time to finish, and is therefore a critical path in that process

5 Total inventory of a process is sum of all inventories existing within the boundaries of that process

6 When a process has various types of waste, many opportunities will likely exist for improving its throughput

7 The well-known approach to Lean Six Sigma problem solving has 8 steps, and its acronym is DOWNTIME

8 Process imperfections leas to costly wastes and weakened ability for a business to compete in that market

9 Takt time, Flow time, and unit load all have the same units

10 Out of pocket costs refer to when flexible resources are not well utilized (for example, hiring a highly skilled resource for simple tasks)