Quartex Corporation is considering implementation of a JIT inventory system. The companys industrial engineer recently conducted a
Question:
Quartex 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 Quartex’s value-added production activities.
b. Identify Quartex’s non–value-added production activities.
c. Calculate Quartex’s total cycle time.
d. Determine Quartex’s manufacturing efficiency ratio.
e. Which of these activities might be reduced or eliminated if Quartex implemented a JIT system?
f. List some of the positive and negative consequences of eliminating some of the non–valueadded activities.
Step by Step Answer:
Financial And Managerial Accounting The Basis For Business Decisions
ISBN: 9781260247930
19th Edition
Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello