Walker Brothers Company is considering the installation of a JIT manufacturing system in the hope...
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Accounting
Walker Brothers Company is considering the installation of a JIT manufacturing system in the hope that it will improve the companys overall processing cycle efficiency. Data form the traditional system and estimates for the JIT system are presented here for their Nosun product:
Time Category
Traditional System
JIT System
Storage
4 hours
1 hour
Inspection
40 minutes
5 minutes
Moving
80 minutes
20 minutes
Processing
2 hours
75 minutes
A) Calculate processing cycle efficiency (PCE) under the traditional and JIT systems for the Nosun product.
B) Based strictly on your PCE calculations above, should Walker Brothers implement the JIT system?
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