Elimination of non-value activity-jit features, Managerial Accounting

Elimination of non-value added activity

JIT manufacturing can be described as a philosophy of management, dedicate to the elimination of waste. Waste is stated as anything which does not add value to a product.

The cycle time involved in manufacturing and selling a product consist of:


•    Process time-add values
•    Inspection time
•    More time             
•    Queue time
•    Storage time

Of these 5 steps only process time actually adds value to the products. All the other activities add cost and No value to the production and therefore are deemed as non-value within the JIT philosophy.

Usually in many companies, process time is less than 10% of total manufacturing, lead and cycle time. Therefore 90% of the manufacturing lead time disassociated with the product, adds cost but no-value to the product by adapting a JIT philosophy and forecasting, on reducing lead time, it is claimed that total cost can be significantly reduced.

The ultimate products with lead-time = processing time, and eliminating all non-value adding activities.

Posted Date: 12/6/2012 7:08:13 AM | Location : United States







Related Discussions:- Elimination of non-value activity-jit features, Assignment Help, Ask Question on Elimination of non-value activity-jit features, Get Answer, Expert's Help, Elimination of non-value activity-jit features Discussions

Write discussion on Elimination of non-value activity-jit features
Your posts are moderated
Related Questions
I am part of a marketing group, and we are working on a project for a local cable company,they currently serve 3,200 customers and sell 50 wireless boxes a month,what I need to do

Std error of the slope (Sb) Correlation coefficient measures the degree of association between two variables such as the cost and the activity level. The standard error of ‘

Profitability ratios The primary objective of a business under taking is to earn profits. Profit earning is considered necessary for the survival of the business. A business re

given the above data what would the breakeven in units and dollars be if u wanted a necessary after tax profit of $ 36,000 (assume a 30% tax rate ) units __________ ales dollars _

Variances Analysis Variances are the differences between actual results and expected results. Expected results are the standard costs and standard revenues. Price, rate and

Welcome to the Fall 2011 version of the comprehensive assignment prepared specifically for Accounting 294. Made up of 3 parts this assignment is meant to fulfil a number of obje

Selling product for 31.00 and Variable expenses are 26.00. In order to cover the fixed expenses 31,500 hats must be sold what is the Total fixed cost in dollars?

The current sales of M/s ABC are Rs.100 lakhs. Through relaxing the credit standards the firm can produce additional sales of Rs.15 lakhs on that bad debt losses would be 10 percen

M/s ABC is seeing relaxing its collection efforts. At current its sales are as Rs.40 lakhs, the ACP is here 20 days and variable cost to sales ratio is .8 and bad debts are as .05