A motorcycle manufacturer was concerned with declining market share because of foreign competition. To become more efficient, the company was considering changing to a just-in-time (JIT) production system.

As a first step in analyzing the feasibility of the change, the company identified its major activities. Among the 120 activities were the following:

Materials receiving and inspection Production scheduling Production setup Rear-wheel assembly Moving engine from fabrication to assembly building Assembling handlebars Paint inspection Reworking defective brake assemblies Installing speedometers Putting completed motorcycle in finished goods storage 1. From the list of ten activities given above, prepare two lists—one of value-added activities and one of non-value-added activities.

2. For each non-value-added activity, explain how a JIT production system might eliminate, or at least reduce, the cost of the activity.