Question

Smit 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
Cutting materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Rework . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Warranty repairs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Quality training . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Painting finished goods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Bending materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Purchasing raw materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Assembling finished products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

Instructions
a. Identify Smit’s value-added production activities.
b. Identify Smit’s non-value-added production activities.
c. Calculate Smit’s total cycle time.
d. Determine Smit’s manufacturing efficiency ratio.
e. Which of the above activities might be reduced or eliminated if Smit implemented a JIT system?
f. List some of the positive and negative consequences of eliminating some of the non-value added activities.



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  • CreatedApril 17, 2014
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