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A motorcycle manufacturer was concerned with declining market share because of foreign competition. To become more effic

Posted: Mon May 02, 2022 6:41 am
by answerhappygod
A motorcycle manufacturer was concerned with declining market share because of foreign competition. To become more efficient, the company was considering changing to a JIT production system. As a first step in analyzing the feasibility of the change, the pany identified its major activities. Among the 120 activities were the following:
Paint inspection
Production scheduling
Assembly of handlebars
Production setup
Rear-wheel assembly
Materials receiving and inspection
Movement of engine from fabrication to assembly building
Installation of speedometer
Placement of completed motorcycle in finished goods storage
Reworking of defective brake assemblies
1. From the preceding list of 10 activities, prepare two lists: one of value-added activities and one of non-value-added activities.
2. For each non-value-added activity, explain how a JIT production system might eliminate, or at least reduce, the cost of the activity.