Problem - Castner Corporation is considering implementation of a JIT inventory system. The company's industrial engineer recently conducted a study to determine the average number of days spent in each activity of the production process. The following table summarizes her findings:
Production Activity - Number of Days
Inspecting materials - 3
Storing materials - 17
Moving materials into production - 3
Setting up production equipment - 2
Cutting materials - 6
Bending materials - 5
Assembling finished products - 9
Painting finished products - 5
Instructions -
a. Identify Castner's value-added production activities.
b. Identify Castner's non-value-added production activities.
c. Calculate Castner's total cycle time.
d. Determine Castner's manufacturing efficiency ratio.
e. Which of the above activities might be reduced or eliminated if Castner implemented a JIT system?
f. What ethical issues might be related to eliminating some of the non-value-added activities?