Castner corporation is considering implementation of a jit


Problem - 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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Accounting Basics: Castner corporation is considering implementation of a jit
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