Question
Carts Corporation is trying to determine how long it takes for one product to pass through the production process. The following information was gathered regarding
Carts Corporation is trying to determine how long it takes for one product to pass through the production process. The following information was gathered regarding how many days the product spent in various production activities:
| Activity | Number of Days |
| Inspection | 5 |
| Storage | 6 |
| Assembly | 4 |
| Handling | 2 |
| Painting | 1 |
| Packaging | 1 |
a. Which of the above activities are value-added?
b. What is Carts total cycle time?
c. Determine Carts manufacturing efficiency ratio.
d. If Carts implements a total quality management program and a just-in-time inventory system, what would be the change in Carts manufacturing efficiency ratio?
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Financial and Managerial Accounting the basis for business decisions
Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello
17th edition
007802577X, 978-0078025778
