What is the benefit of identifying non-value added activity? How is setup time and lead time...
What is the benefit of identifying non-value added activity? How is setup time and lead time important in a just-in-time environment?
Homework Answers
Non Value added activities are those which does not add value but are relevant to control following things:-
1.Defects in production
2. Overproduction
3. Waiting time between production processes.
4.Under utilization of manpower
5. Unnecessary transportation costs
6. Unnecessary movements by people.
Significance of set up time and lead time in just in time environment
Just in time is a process by which items are created to meet demand and no surplus is kept. In crux, it focuses on minimum wastage in production, waiting and excess inventory.
Hence, to survive in just in time model, organization need to have minimum set up time and lead time, otherwise, organization will not be able to fulfill the demand and Just in time model will fail.
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What is the benefit of identifying non-value added activity? How
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