Which of the following is not a principle regarding the way lean systems function? (I) Identifying customer values (II) Focusing on processes that create value (III) Elimination of waste to create flow (IV) Increasing forecast accuracy (V) Producing only according to customer demand (VI) Optimizing on setup costs with long production runs (VII) Striving for perfection

These are not principles regarding the way lean systems function IV) Increasing forecast accuracy

(VI) Optimizing on setup costs with long production runs

Explanation:

A Lean system principle  applies that businesses and organisations  plan and prioritize their work output in relation to identifying and catering to customer values  thereby eliminating  things that do not add value  and on the other hand  ensuring sustainability and productivity of the organisation as a whole.

There are basic  principles businesses adopt  to  improving workplace productivity and efficiency which include:

1) defining customer value,

2)identify  the factors that contribute to the  value stream and waste elimination

3) creating flow and strategic processes that create value  

4) Ensuring products are produced according to demand and the right time

5) Strive for perfection.

Therefore option IV) Increasing forecast accuracy and

(VI) Optimizing on setup costs with long production runs are not lean system principles.