Castner Corporation is considering implementation of a JIT inventory system. The companys industrial engineer recently conducted a
Question:
Castner Corporation is considering implementation of a JIT inventory system. The company’s industrial engineer recently conducted a study to determine the average number of days spent in each activity of the production process. The following table summarizes her findings.
Instructions
a. Identify Castner’s value-added production activities.
b. Identify Castner’s non–value-added production activities.
c. Calculate Castner’s total cycle time.
d. Determine Castner’s manufacturing efficiency ratio.
e. Which of these activities might be reduced or eliminated if Castner implemented a JIT system?
f. What ethical issues might be related to eliminating some of the non–value-added activities?
Step by Step Answer:
Financial And Managerial Accounting
ISBN: 12
14th International Edition
Authors: Jan R. Williams, Joseph V. Carcello, Mark S. Bettner, Sue Haka, Susan F. Haka