Bundle: Managerial Accounting, Loose-leaf Version, 14th - Book Only
14th Edition
ISBN: 9781337541398
Author: Carl Warren; James M. Reeve; Jonathan Duchac
Publisher: Cengage Learning
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Chapter 12, Problem 1E
To determine
Respond to the CEO’s statement of inventory reduction.
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Students have asked these similar questions
The chief executive officer (CEO) of Ozark Industries has just returned from a
management seminar describing the benefits of the just-in-time philosophy.
The CEO issued the following statement after returning from the conference:
This company will become a just-in-time manufacturing
company. Presently, we have too much inventory. To become
just-in-time, we need to eliminate the excess inventory.
Therefore, I want all employees to begin reducing inventories
until we are just-in-time. Thank you for your cooperation.
All of the following are accurate responses to counter the CEO's
misunderstandings about the benefits of the just-in-time philosophy except
for:
To achieve just-in-time, the company must remove the reasons for excess inventory
rather than just reduce the inventory.
OIf the employees follow the CEO's orders without making the process improvements,
the plant will likely suffer reduced productivity.
O The CEO has not provided the training or action plan for moving to…
1.
Lean Principles
The chief executive officer (CEO) of Platnum Inc. has just returned from a management seminar describing the benefits of the lean philosophy. The CEO issued the following statement after returning from the conference:
This company will become a lean manufacturing company. Presently, we have too much inventory. To become lean, we need to eliminate the excess inventory. Therefore, I want all employees to begin reducing inventories until we make products "just-in-time". Thank you for your cooperation.
To implement lean, a company must first remove the reasons for excess inventory. All of the following are reasons except:
a.poor quality
b.large setup times
c.unreliable equipment
d.poor employee relationships
e.worker's unions
The chief executive officer (CEO) of Cobalt Inc. just read an article written by a business professor at Harvard University describing the benefits of the lean philosophy. The CEO issued the following statement after reading the article:
This company will become a lean manufacturing company. Presently, we have too much inventory. To become lean, we need to eliminate the excess inventory. Therefore, I want all employees to begin reducing inventories until we make products “just in time. ” Thank you for your cooperation.
How would you respond to the CEO’s statement?
Chapter 12 Solutions
Bundle: Managerial Accounting, Loose-leaf Version, 14th - Book Only
Ch. 12 - What is the benefit of the lean philosophy?Ch. 12 - Prob. 2DQCh. 12 - Prob. 3DQCh. 12 - Prob. 4DQCh. 12 - Prob. 5DQCh. 12 - Why would a lean manufacturer strive to produce...Ch. 12 - Prob. 7DQCh. 12 - Prob. 8DQCh. 12 - Prob. 9DQCh. 12 - Prob. 10DQ
Ch. 12 - Prob. 11DQCh. 12 - Prob. 12DQCh. 12 - Prob. 13DQCh. 12 - Prob. 1BECh. 12 - Prob. 2BECh. 12 - Prob. 3BECh. 12 - Prob. 4BECh. 12 - Prob. 5BECh. 12 - Prob. 1ECh. 12 - Prob. 2ECh. 12 - Prob. 3ECh. 12 - Prob. 4ECh. 12 - Prob. 5ECh. 12 - Prob. 6ECh. 12 - Calculate lead time Williams Optical Inc. is...Ch. 12 - Prob. 8ECh. 12 - Prob. 9ECh. 12 - Prob. 10ECh. 12 - Prob. 11ECh. 12 - Prob. 12ECh. 12 - Lean accounting Modern Lighting Inc. manufactures...Ch. 12 - Prob. 14ECh. 12 - Prob. 15ECh. 12 - Prob. 16ECh. 12 - Prob. 17ECh. 12 - Prob. 18ECh. 12 - Process activity analysis The Brite Beverage...Ch. 12 - Prob. 20ECh. 12 - Prob. 21ECh. 12 - Prob. 1PACh. 12 - Prob. 2PACh. 12 - Lean accounting Dashboard Inc. manufactures and...Ch. 12 - Prob. 4PACh. 12 - Prob. 1PBCh. 12 - Lead time Master Chef Appliance Company...Ch. 12 - Lean accounting Com-Tel Inc. manufactures and...Ch. 12 - Pareto chart and cost of quality report for a...Ch. 12 - Prob. 1ADMCh. 12 - Prob. 2ADMCh. 12 - Prob. 3ADMCh. 12 - Ethics in Action In August, Lannister Company...Ch. 12 - Prob. 3TIF
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