22. (Activity analysis) Conveyance Systems is investigating the costs of schedule changes in its factory. Following is a list of the activities, estimated times, and average costs required for a single schedule change.

a. Which of the above, if any, are value-added activities?

b. What is the cost driver in this situation?

c. How can the cost driver be controlled and the activities eliminated?

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Activity Review impact of orders Reschedule orders Lost sales Unreliable customer service Reschedule production orders Contact production supervisor Estimated Time 30 min-2 hrs 15 min-24 hrs Average Cost $ 300 800 15 min-1 hr 5 min 75 15 Stop production and change over Generate paperwork to return materials Return and locate material (excess inventory) 20 min-6 hrs 1,500 Generate new production paperwork 15 min-4 hrs 500 Change routings Change bill of materials Change procurement schedule 10 min-8 hrs 2,100 Purchase orders Inventory Collect paperwork from the floor 15 min 75 Review new line schedule 15 min-30 min 100 Overtime premiums 3 hrs-10 hrs 1,000 Total $6,455