Assignment: Managerial Accounting
Managing activities across the value chain represents a comprehensive integrated approach to the traditional management functions of planning and control. Eliminating non-value-added activities from the chain is central to this strategic approach to cost management.
Smith Corporation is considering the implementation of a JIT inventory system. The company recently analyzed its cycle time to determine the average number of days spent in each activity of its production process. Use the summary of the analysis shown below to answer the included questions in a response of 2-3 pages:
Production Activity Number of Days
Receiving materials 1
Inspecting material 4
Storing Materials 9
Moving materials into production 6
Setting-up production equipment 7
Cutting materials 6
Assembling materials 7
Painting finished products 4
Packaging finished products 1
a. What steps are needed to determine the value-adding production activites?
b. What is the total cycle time in days?
c. What is the manufacturing efficiency ratio________%?
d. Discuss the activities that might me reduced or eliminated to implement an efficient JIT system?
Format your assignment according to the following formatting requirements:
1. The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also includes a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
3. Also include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.