Identify activities that are non value-adding

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Reference no: EM13790425

Resser Corporation manufactures serving trays and utensils for use by airlines for meal service. Several airlines order these products in large quantities. Resser had adopted an activity-based management philosophy. Listed below are the principal activities of the company.

Product inspection

Product packaging

Materials storage Product engineering

Product scheduling

Materials purchasing

Production-machine setup

Building maintenance

New product design

Product marketing

Accounting

Moving work in process

Inventory control

Production-assembly

Production area cleanup

Human resources services

Product rework

Depreciation of building

a. Identify activities that are non value-adding.

b. Analyze each of the non value-adding activities and determine which are necessary. Suggest how each of the activities that you classified as unnecessary could be reduced or eliminated.

Reference no: EM13790425

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