In a lean system, the key to continuous improvement is the understanding that excess capacity or inventory hides problems on the shop floor and thus prevents waste sources from being identified and eliminated. True or false?

True

Explanation:

Lean systems have one focus, to maximize customer value. It is an approach in business where lean methods or principles are applied to plan, measure work done, manage and prioritize.

In a lean system, it is important to identify excess inventory or capacity, because it hides problem of wasted resources.