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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 cach activity of the production process. The following table summarizes her findings. Production Activity Number of Days Inspecting materials Storing materials 15 Moving materials into production Setting up production equipment 3 Cutting materials 6. 4 Bending materials Assembling finished products Painting finished products Instructions a. Identify Castner's value-added production activities. b. Identify Castner's non-value-added production activities. с. Calculate Castner's total cycle time.

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 cach activity of the production process. The following table summarizes her findings. Production Activity Number of Days Inspecting materials Storing materials 15 Moving materials into production Setting up production equipment 3 Cutting materials 6. 4 Bending materials Assembling finished products Painting finished products Instructions a. Identify Castner's value-added production activities. b. Identify Castner's non-value-added production activities. с. Calculate Castner's total cycle time.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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19.1A
**Just-In-Time (JIT) Inventory System Implementation at Castner Corporation** Castner Corporation is evaluating the implementation of a Just-In-Time (JIT) inventory system. An industrial engineer conducted a study to determine the number of days spent on each production activity. The table below summarizes the findings: | **Production Activity** | **Number of Days** | |------------------------------------|--------------------| | Inspecting materials | 2 | | Storing materials | 15 | | Moving materials into production | 2 | | Setting up production equipment | 3 | | Cutting materials | 6 | | Bending materials | 3 | | Assembling finished products | 6 | | Painting finished products | 2 | **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 these 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? This analysis will help Castner Corporation optimize its production processes and improve efficiency by identifying and reducing non-value-added activities.
Transcribed Image Text:**Just-In-Time (JIT) Inventory System Implementation at Castner Corporation** Castner Corporation is evaluating the implementation of a Just-In-Time (JIT) inventory system. An industrial engineer conducted a study to determine the number of days spent on each production activity. The table below summarizes the findings: | **Production Activity** | **Number of Days** | |------------------------------------|--------------------| | Inspecting materials | 2 | | Storing materials | 15 | | Moving materials into production | 2 | | Setting up production equipment | 3 | | Cutting materials | 6 | | Bending materials | 3 | | Assembling finished products | 6 | | Painting finished products | 2 | **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 these 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? This analysis will help Castner Corporation optimize its production processes and improve efficiency by identifying and reducing non-value-added activities.
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