Identify castners non value added production


Castner Coporation is considering implementation of a JIT inventory system. The companies industria 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/# of days

inspecting matieral/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. Indentify castners value added production activities

b. Identify castners non value added production

c. Calculate casners total cycle time

d. Determine castners manufacturing efficiency ratio

e. Which of the above activies might be reduced or eliminated if castner impleemented a JIT system

f. What ethical issues might be related to eliminateing some of the non value added activities?

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Accounting Basics: Identify castners non value added production
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