A firm has redesigned its production process so that it now takes 10 hours for a unit to be made. Using the old process, it took 15 hours to make a unit. If the process makes one unit each hour on average and each unit is worth $1,500, what is the reduction in work-inprocess value?

A firm has redesigned its production process so that it now takes 10 hours for a unit to be made. Using the old process, it took 15 hours to make a unit. If the process makes one unit each hour on average and each unit is worth $1,500, what is the reduction in work-inprocess value?

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter4: Linear Programming Models

Section4.8: Data Envelopment Analysis (dea)

Problem 41P

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Concept explainers

Lean Production

The word lean refers to the “slim “that is used in manufacturing for the systematic designing that focuses on minimizing the waste in the manufacturing or production with the constant productivity of the operation. Lean manufacturing was rooted from Toyota Production system a Japanese manufacturing company that works on the approach of minimizing the non-value-added activities and making the production lean.

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A firm has redesigned its production process so that it now takes 10 hours for a unit to be made. Using the old process, it took 15 hours to make a unit. If the process makes one unit each hour, on average, and each unit is worth $1,500, what is the reduction in working process value?
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