True or False: Standardizing products and services effectively lowers the total cost of ownership.

Standardizing products and services does effectively lower the total cost of ownership because it streamlines processes and reduces variation. When products and services are standardized, organizations can achieve economies of scale, which means that the cost per unit decreases as the volume of production increases. This can result from bulk purchasing, reduced inventory costs, and simplified manufacturing processes.

Standardization also leads to more predictable quality and performance, which can reduce waste and minimize the costs associated with defects and recalls. Consistent training and development of employees become easier with standardization, as there is a clear set of procedures to follow, ultimately increasing efficiency and lowering labor costs.

In addition, when consumers readily recognize standardized products, it can improve brand loyalty and market competitiveness, further contributing to cost savings and efficiency across the supply chain. All these factors contribute to a lower total cost of ownership for standardized products and services.