Setup time for a product is 12 hours.A firm that uses JIT and produces the same product has reduced setup time by 1 hour.Setup labour is $20 per hour.What would be the currently attainable standard for setup time if the company wants to reduce non-value-added costs by 40 percent next year?
A)7.6 hours
B)7.2 hours
C)6.6 hours
D)4.8 hours

Question

Quizplus · Accepted Answer

Setup time reduction = 40% of 11 hours = 4.4 hoursNew setup time = 11 hours - 4.4 hours = 7.6 hours

Setup Time for a Product Is 12 Hours