Resser Corporation Manufactures Serving Trays and Utensils for Use by Airlines

question 38

Essay

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.
$\begin{array}{ll}\text { Product inspection } & \text { Product marketing } \\\text { Product packaging } & \text { Accounting } \\\text { Materials storage } & \text { Moving work in process }\\\text { Product engineering } & \text { Inventory control } \\\text { Product scheduling } & \text { Production - assembly } \\\text { Materials purchasing } & \text { Production area cleanup }\\\text { Production -machine setup } & \text { Human resources service } \\\text { Building maintenance } & \text { Product rework } \\\text { New product design } & \text { Depreciation of building }\end{array}$
a. Identify activities that are nonvalue-adding.
b. Analyze each of the nonvalue-adding activities and determine which are necessary. Suggest how each of the activities that you classified as unnecessary could be reduced or eliminated.

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Definitions:

Automobiles

Automobiles that run on an internal combustion engine or are powered by electricity, designed for moving individuals or cargo.

Income

Financial returns received regularly from work or investment sources.

Preferences

Individual choices or priorities regarding products, services, or outcomes based on factors like taste, convenience, and value.

Quantity Supplied

The specific amount of a good or service that producers are willing and able to sell at a particular price.