Problem

Castner Corporation is considering implementation of a JIT inventory system. The company’s...

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?

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