Step 1: Find the output of the upper AND gate.
The inputs to the upper AND gate are
\[
1 \quad \text{and} \quad 0
\]
So,
\[
1\cdot 0=0
\]
Step 2: Find the output of the lower OR gate.
The inputs to the lower OR gate are
\[
0 \quad \text{and} \quad 1
\]
So,
\[
0+1=1
\]
Step 3: Find the output of the middle OR gate.
The inputs to the middle OR gate are \(0\) and \(1\).
Therefore,
\[
0+1=1
\]
Step 4: Find the value of \(Y\).
The final upper gate is a NAND gate.
Its inputs are
\[
0 \quad \text{and} \quad 1
\]
The AND output is
\[
0\cdot 1=0
\]
Since it is a NAND gate, the output is the complement of \(0\).
Thus,
\[
Y=\overline{0}=1
\]
Step 5: Find the value of \(Z\).
The lower OR gate output is \(1\), and after passing through NOT gate, it becomes
\[
\overline{1}=0
\]
Now the final OR gate has inputs
\[
Y=1
\]
and
\[
0
\]
Therefore,
\[
Z=1+0=1
\]
Step 6: Final conclusion.
Hence,
\[
\boxed{Y=1,\quad Z=1}
\]