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Activity-Based Management / Just-in-Time Inventory Assignment: Best Appliance Company, Inc. manufactures home kitchen appliances. The production process consists of the following steps: 1. Stoel is

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Activity-Based Management / Just-in-Time Inventory Assignment: Best Appliance Company, Inc. manufactures home kitchen appliances. The production process consists of the following steps: 1. Stoel is unloaded from a vendor truck (which takes 20 minutes) and is inspected (which takes 10 minutes) and kept in a raw materials warehouse for 2 days. 2. Steel is moved from the materials warehouse to the factory next door (which takes 15 minutes) and waits during machine setup to get stamped. 3. The stamping operation (where individuals stamp the steel outer surface of the appliance) is set up prior to each run. (60 minutes) 4. Arun of 40 stampings is completed after the setup. Each stamping requires 5 minutes of operating time. 5. After each batch is complete, the operator moves the stamped covers to the final assembly area on the other side of the factory. This move takes 10 minutes to complete. 6. Other materials needed for the appliance are already stored in the final assembly area. The final assembly requires 22 minutes per unit and is also done in batches of 40 appliance units 7. The batch of 40 appliances is moved to a test room in the basement of a building across the street. The move takes 25 minutes. 8. In the final test, the 40-unit batch is tested one at a time. Each test requires 8 minutes. 9. After testing, the complete batch of 40 units is sent up to the shipping room on the main floor in the testing building. This takes 15 minutes. 10. Packaging and shipment labeling requires 15 minutes per unit 11. The transport company is called to send a truck to pick up the shipment. The truck arrives, usually in about 45 minutes. 12. The packaged appliances are loaded into the truck (which takes 30 minutes) and spend 40 minutes being transported to a retailer's store which will in tum ship individual appliances out to customers who have placed online orders for the appliances QUESTIONS: A Identify the steps in Best Appliance's process that fall into each of the following categories: process time, setup time, inspection time, move time, waiting time, storage time. B. List the steps in the production process that are value-added activities. What is the total time for these activities? List the steps in the production process that are non-value-added activities. What is the total time for these activities? What percentage then of the total time is non-value-added? C. Write about how things would change if the business adopted the JIT philosophy. Be specific. Explain how the key elements" of JIT systems would be present in the new production process. What new machines / layout/procedures would be needed to implement a JIT system

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