Nanner Corporation is trying to determine how long it takes for one product to pass through the production process. The following information was gathered regarding how many days the product spent in various production activities:
Activity | Number of Days |
Inspection | 5 |
Storage | 6 |
Assembly | 3 |
Handling | 2 |
Painting | 3 |
Packaging | 1 |
a. Which of the above activities are value-added?
b. What is Nanner’s total cycle time?
c. Determine Nanner’s manufacturing efficiency ratio.
d. If Nanner implements a total quality management program and a just-in-time inventory system, which of the above activities could be eliminated? What would be the change in Nanner’s manufacturing efficiency ratio?
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