Managerial Accounting (4th Edition)
Managerial Accounting (4th Edition)
4th Edition
ISBN: 9780133428377
Author: Karen W. Braun, Wendy M. Tietz
Publisher: PEARSON
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Chapter 4, Problem 4.51ACT

Value-Added versus Non-Value-Added at a Restaurant

Go to a fast-food restaurant (or think of the last time you were at a fast-food restaurant). Observe the steps involved in providing a meal to a customer. You will be watching for value-added steps and non-value-added steps. Answer the following questions.

Basic Discussion Questions

  1. 1. Describe the steps involved with delivering the meal to the customer that you can observe.
  2. 2. Describe the “behind-the-scenes” processes that are likely in the restaurant, such as cleaning, stocking, and cooking activities.
  3. 3. With your answers for Questions 1 and 2, list all of the possible activities, materials, and information that you think might be included on a value stream map for the restaurant. Include all of the steps you can think of (not necessarily only those you can observe).
  4. 4. Make a list of the eight wastes as denoted by the acronym DOWNTIME (Defects, Overproduction, Waiting, Not utilizing people to their full potential, Transportation, Inventory, Movement, and Excess processing). Next to each waste category, list at least one possible non-value-added activity that might or might not be in the processes in that restaurant.
  5. 5. Go back to the list of items for the potential value stream map. Circle potential areas for improvement and explain which wastes might be involved in those areas.
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Managerial Accounting (4th Edition)

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