Financial & Managerial Accounting 17th Edition by Jan Williams ,Susan Haka,Mark Bettner,Joseph Carcello

تمرين 33

Identifying Value-Added and Non-Value-Added Activities
Quartex 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:

Instructions
a. Identify Quartex's value-added production activities.
b. Identify Quartex's non-value-added production activities.
c. Calculate Quartex's total cycle time.
d. Determine Quartex's manufacturing efficiency ratio.
e. Which of the above activities might be reduced or eliminated if Quartex implemented a JIT system?
f. List some of the positive and negative consequences of eliminating some of the non-value-added activities.