Refer to the information given in the preceding problem for Borealis, Inc.

Required: 

Identify the non-value-added costs that might be present in Borealis' traditional plant layout and production process. Write a memo to the company president pointing these costs out and advocating an FMS.

Data From Preceding Problem:-

Borealis. Inc. manufactures special heavy bolts used in spacecraft. The production process consists of the following operations: ( 1 ) metal rods are cut to the proper length in a cutting machine; (2) a heading machine flattens the end of the cut rod to form a head; (3) a slotting machine cuts a slot in the bolts head; (4) the bolt is run through a threading machine, which cuts the bolt's threads; (5) the bolt is washed to remove metal shavings and other foreign particles: (6) the bolt is heat-treated for hardness in a salt bath; (7) the bolt is inspected: (8) the bolt is wrapped and packaged. The salt bath is a very expensive operation because of the electricity requirements. Another expensive operation is the central oil-filtration system, which is used to provide oil to all of the cutting and threading machines. The oil acts as a lubricant and coolant. After passing through a cutting machine, the oil is pumped back to a central oil-filtration station, which filters foreign particles from the oil.