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 2018. 

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 2018 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 2018. 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 2018. What reasons might lead Kurunmäki to simplify the job-cost records?

Transcribed Image Text:

April- June September December October- January- March July- Manufacturing lead time (days) Frankfurt 9.2 8.7 7.4 6.2 Stuttgart Total set-up time for machines Total production time 8.3 8.2 8.4 8.1 Frankfurt 52.1% 49.6% 43.8% 46.7 39.2% 48.1 Stuttgart Number of units requiring rework Total number of units started and completed 47.6 47.5 Frankfurt 64.7% 59.6% 52.1% 35.6% Stuttgart 53.8 56.2 51.6 52.7