Mannklein AG is a major manufacturer of metal-cutting machines. It has plants in Frankfurt and Stuttgart. The
Question:
Mannklein AG is a major manufacturer of metal-cutting machines. It has plants in Frankfurt and Stuttgart. The managers of these two plants have different manufacturing philosophies. Liisa Kurunmäki, the recently appointed manager of the Frankfurt plant, is a convert to JIT production and had fully implemented JIT by January 2022.
Thomas Ahrens, manager of the Stuttgart plant, has adopted a wait-and-see approach to JIT.
He commented to Kurunmäki : ‘In my time, I have forgotten more manufacturing acronyms than you have read about in your five-year career. In two years’ time, JIT will join the manufacturing buzzword scrapheap.’ Ahrens continues with his ‘well-honed’ traditional approach to manufacturing at the Stuttgart plant.
Summary operating data for the two plants in 2022 are as follows:
Required
1 What are the key features of JIT production?
2 Compare the operating performance of the Frankfurt and Stuttgart plants in 2022. Comment on any differences you observe.
3 Kurunmäki is concerned about the level of detail on the job-cost records for the cutting machines manufactured at the Frankfurt plant during 2022. What reasons might lead Kurunmäki to simplify the job-cost records?
Step by Step Answer:
Management And Cost Accounting
ISBN: 9781292436029
8th Edition
Authors: Alnoor Bhimani, Srikant Datar, Charles Horngren, Madhav Rajan