(SOLVED) Quartex Corporation is considering implementation of a JIT inventory system


Question Description:

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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:
Production Activity Number of Days
Cutting materials . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Rework . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Warranty repairs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Quality training . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Painting finished goods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Bending materials . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Purchasing raw materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Assembling finished products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
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.

Answer

$19