ch 19 B worksheets 16th-2

Positive consequences reduction in cost of producing

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Unformatted text preview: hown below: Value-Added Activity Days Cutting materials ………………………………………………………. Painting finished products …………………………………………….. Bending materials ……………………………………………………… Purchasing raw materials ……………………………………………… Assembling finished products ………………………………………… Total value-added time ………………………………………………… days Given total value-added time of 60 days and a total cycle time of 86 days, Smit’s manufacturing efficiency ratio must be 70%: 60 days ÷ 86 days = 70% e. The following activities might be reduced or eliminated if Smit implements a JIT system: Rework—eliminated Warranty repairs−possibly reduced or eliminated Quality training−possibly reduced f. Positive consequences: reduction in cost of producing goods/services, reduction in overall production time, increase in profitability of company, constant imp...
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