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Nanner Corporation is trying to determine how long it takes for oneproduct to pass through the production process. The followinginformation was gathered regarding how many days the product spentin various production activities:



Activity................Number of Days
Inspection............5

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Elin Hessel
Elin HesselLv2
11 Aug 2019
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Nanner Corporation is trying to determine how long it takes for oneproduct to pass through the production process. The followinginformation was gathered regarding how many days the product spentin various production activities:


Activity Number of Days
Inspection 5
Storage 6
Assembly 4
Handling 2
Painting 1
Packaging 1

a. Which of the above activities are value-added?
Assembly and painting
Handling and packaging
Inspection and storage
b. What is Nanner's total cycle time?
Total cycle days
c.

Determine Nanner's manufacturing efficiency ratio. (Round your answer to2 decimal places. Omit the "%" sign in yourresponse.)
Manufacturing efficiency ratio %
d.

If Nanner implements a total quality management program and ajust-in-time inventory system. What would be the change in Nanner'smanufacturing efficiency ratio? (Round your answer to2 decimal places. Omit the "%" sign in yourresponse.)
Manufacturing efficiency ratio %

Castner Corporation is considering implementation of a JITinventory system. The company’s
industrial engineer recently conducted a study to determine theaverage number of days spent in
each activity of the production process. The following tablesummarizes her findings

Production Activity Number of Days
Inspecting materials . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . 3
Storing materials . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . 17
Moving materials into production . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . 3
Setting up production equipment . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . 2
Cutting materials . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . 6
Bending materials . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . 5
Assembling finished products . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . 9
Painting finished products . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . 5
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 the above activities might be reduced or eliminated ifCastner implemented a JIT
system?
f. What ethical issues might be related to eliminating some of thenon-value-added activities?

A corporation is consideringimplementation of a JIT inventorysystem. The company's industrialengineer recently conducted a studyto determine the average numberof days spent in each activity ofthe production process. Thefollowing table summarizes thefindings:

Production Activity Number ofdays

Inspectingmaterials...........................................3
Storingmaterials...............................................17
Moving materials into production........................ 3
Setting up production equipment....................... 2
Cuttingmaterials.............................................6
bending materials............................................5
Assembing finished products............................ 9
Painting finished products................................ 5
e. which of the above activities might be reduced oreliminatedif the company implemented a JIT system?
f. What ethical issues might be related to eliminating someofthe non-value added activites?

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