Chapter 20 Inventory management, Just -in-time, and simplified costing methods

This is all the information I have

As a new senior accountant of Troy Rugs Inc. an exotic rug manufacturer, you have taken on the new responsibility of lean accounting within the company. During your monthly analysis, you outline many areas that the company does not possess to adopt a lean accounting system. You have observed that setup times take a week versus two days as they should. You noticed that the lot in which the raw materials are stored shares 75% of the lot in which rugs are wrapped and prepared for shipping which extends the time needed to fulfill an order an additional four days. Overall the layout of the facility is not as functional as the materials used to produce the rugs are on the same floor in inventory as rugs that have been produced and there is no one process to separate the two or overlook certain rug inventory due to materials being placed in the wrong area of the warehouse. You also have a memo from the CEO stating that one of the companys largest suppliers of thread has gone bankrupt and there is no backup supplier. This ultimately is the reason no custom orders will be approved for at least the next three months.

Questions:

1. What suggestions do you have for implementing JIT at Troy Rugs?

2. Should custom orders and standard orders be produced on the same line? (Hint: Do they require the same type of operation?)