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.