Log out Go to App
Go to App

Learning Materials

Features

Discover

Chapter 3: Q2C (page 371)

Question:Make recommendations for lean improvements in such areas as scheduling, layout, kanban, task groupings, and inventory. Use quantitative data as much as possible; state necessary assumptions.

Short Answer

Expert verified

Answer

The manager was looking to solve many problems to solve at a time. The recommendations could be more than one as to hire a few quality inspectors, to work on the JIT issue, stabilize the condition of workers, etc.

Step by step solution

01

Recommendations for improvements

Step 1: Recommendations for improvements

To hire some quality inspectors to inspect where the quality is lacking and help the organization improve their process quality, so the result should be better. JIT (just in time) strategy means the use of any finished goods at the same so that it will help to reduce the wastage of the products and also remove the step of storage of inventory.

02

Elements where eliminations of waste can occur

Step 2: Elements where eliminations of waste can occur

  1. JIT Production
  2. Kanban production system
  3. Uniform plant loading, etc.

Unlock Step-by-Step Solutions & Ace Your Exams!

  • Full Textbook Solutions

    Get detailed explanations and key concepts

  • Unlimited Al creation

    Al flashcards, explanations, exams and more...

  • Ads-free access

    To over 500 millions flashcards

  • Money-back guarantee

    We refund you if you fail your exam.

Start your free trial

Over 30 million students worldwide already upgrade their learning with Vaia!

One App. One Place for Learning.

All the tools & learning materials you need for study success - in one app.

Get started for free

Most popular questions from this chapter

Under a kanban approach to lean manufacturing, order quantities should be as small as possible. For a part that is manufactured in-house, what part of its manufacturing process needs to be reduced to reduce the optimal order quantity for an item?

Question:Eliminating the queue of work dramatically quickens the time it takes apart to flow through the system. What are the disadvantages of removing those queues?

One of your Taiwanese suppliers has bid on a new line of molded plastic parts that are currently being assembled at your plant. The supplier has bid \(0.10 per part, given a forecast you provided of 200,000 parts in year 1; 300,000 in year 2; and 500,000 in year 3. Shipping and handling of parts from the supplier’s factory are estimated at \)0.01 per unit. Additional inventory handling charges should amount to \(0.005 per unit. Finally, administrative costs are estimated at \)20 per month. Although your plant can continue producing the part, the plant would need to invest in another molding machine, which would cost \(10,000. Direct materials can be purchased for \)0.05 per unit. Direct labor is estimated at \(0.03 per unit plus a 50 percent surcharge for benefits; indirect labor is estimated at \)0.011 per unit plus 50 percent benefits. Up-front engineering and design costs will amount to $30,000. Finally, management has insisted that overhead be allocated if the parts are made in-house at a rate of 100 percent of direct labor cost. The firm uses a cost of capital of 15 percent per year. What should you do, continue to produce in-house, or accept the bid from your Taiwanese supplier?

What term refers to a schedule that pulls material into the final assembly at a constant rate?

Question:Refers to an estimate of the cost of an item that includes all costs related to the procurement and use of an item, including the costs of disposal after its useful life.
See all solutions

Recommended explanations on Business Studies Textbooks

Business Development

Read Explanation

Managerial Economics

Read Explanation

Strategic Analysis

Read Explanation

Operational Management

Read Explanation

Nature of Business

Read Explanation

Corporate Finance

Read Explanation
View all explanations

What do you think about this solution?

We value your feedback to improve our textbook solutions.

Study anywhere. Anytime. Across all devices.

Sign-up for free