Castner Corporation is considering implementation of a JIT inventory system. The
ID: 2419451 • Letter: C
Question
Castner 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
Inspecting materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Storing materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Moving materials into production . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Setting up production equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Cutting materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Bending materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Assembling finished products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Painting finished products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Instructions
a. Identify Castner’s value-added production activities.
b. Identify Castner’s non-value-added production activities.
c. Calculate Castner’s total cycle time.
d. Determine Castner’s manufacturing efficiency ratio.
e. Which of the above activities might be reduced or eliminated if Castner implemented a JIT
system?
f. What ethical issues might be related to eliminating some of the non-value-added activities?
Explanation / Answer
Answer:a
Answer:b
Answer:c 50 days
Answer:d Storage
Moving
materials
Setting up
Total 22days
Answer:f One would be not inspecting the product to make sure that customers receive well produced products, not to mention the company will be cutting hours from employees.
Painting 5 Assembling 9 Bending 5 Cutting 6 Total 25Related Questions
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