Question
Smith Corporation is considering the implementation of a JIT inventory system. The company recently analyzed its cycle time to determine the average number of days
Smith Corporation is considering the implementation of a JIT inventory system. The company recently analyzed its cycle time to determine the average number of days spent in each activity of its production process.
Production ActivityNumber of days
Receiving materials1
Inspecting materials4
Storing materials 9
Moving materials intro production 6
Setting up production equipment 7
Cutting materials6
Assembling materials7
Packaging finished products 4
Packaging finished products 1
a.What steps are needed to determine the value-adding production activities?
b.What is the total cycle time in days?
c.What is the manufacturing efficiency ratio______%?
d.Discuss the activities that might be reduced or eliminated to implement an efficient JIT system?
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Financial Accounting Fundamentals With Connect Plus
Authors: John Wild
4th Edition
77785932, 978-0077785932
