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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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