Walker Brothers Company is considering installing a JIT manufacturing system in the hope that it will improve its overall processing cycle efficiency. Data from the traditional system and estimates for JIT system are presented here for their NosunProduct:
TimeCategory TraditionalSystem JIT System
Storage 4hours 1 hour
Inspection 40minutes 5minutes
Moving 80minutes 20minutes
Processing 2hours 75 minutes
a. Calculate processing cycle efficiency (PCE) under thetraditional and JIT systems for the Nosun Product.
b. Strictly based on your PCE calculations above, shouldWalker Brothers implement the JIT system. Explain?