A motorcycle manufacturer was concerned with declining market share because of foreign competition. To become more efficient, the company was considering changing to a just-in-time (JIT) production system. As a first step in analyzing the feasibility of the change, the company identified its major activities. Among the 120 activities were the following:

• Materials receiving and inspection
• Production scheduling
• Production setup
• Rear-wheel assembly
• Move engine from fabrication to assembly building
• Assemble handlebars
• Paint inspection
• Re-work defective brake assemblies
• Install speedometer
• Put completed motorcycle in finished goods storage

1. From the list of 10 activities given above, prepare two lists—one of value-added activities and one of non-value-added activities.

2. For each non-value-added activity, explain how a JIT production system might eliminate, or at least reduce, the cost of the activity.