Explain how a just-in-time operating philosophy reduces the time it takes to complete the production of a product. Include in your answer the classifications of time that are affected. How does such a change help to reduce product costs?
The basic ingredient in the just-in-time operating philosophy is the relocation of machinery so that product movement between operations is minimized. Also, raw materials and parts arrive at the plant when needed, and since the operation is driven by a customer's order, the order is shipped as soon as it is completed. In addition, machine operators perform on-site inspections. These changes tend to reduce or eliminate separate product inspection time, moving time, queue time, and storage time. Product costs are reduced because costs of storage, moving, inspection, and floor space occupied by work in process inventory are all reduced. Very little working capital is tied up in inventories as compared to the traditional manufacturing environment. Also, the amount of direct labor required to run the new work cells is much less than the labor needed in the traditional setting.
You might also like to view...
Which of the following statements does not properly describe a defined benefit pension plan?
A. Many assumptions are made in the determination of pension expense. B. The employer bears little risk with respect to estimating the amount of the annual contributions to the plan. C. A pension plan asset is not recorded on the employer's balance sheet. D. The employee bears little risk with respect to estimating the amount of the annual contributions to the plan.
In collectivist societies, ________
A) all property is owned by the government B) the self-worth of the individual is rooted more in the social system than in individual achievement C) the culture is dominated by the need to maintain low power distance and reduce income inequality D) the culture is dominated by a nurturing attitude as opposed to an assertive attitude E) people are highly risk-averse
The three Vs are considered a defining feature of big data. Which of the following is the best definition of the term big data?
A. Variety, visibility, & valuation. B. Volition, veracity, & velocity. C. Volume, velocity, & variety. D. Volume, variability, & veracity.
A typical capacity for an oil supertanker would be approximately?
a. 500,000 barrels b. 1,000,000 barrels c. 2,000,000 barrels d. 40,000,000 barrels