Resser Corporation Manufactures Serving Trays and Utensils for Use by Airlines

question 55

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.
$\begin{array}{ll}\text { Product inspection } & \text { Product marketing } \\\text { Product packaging } & \text { Accounting } \\\text { Materials storage } & \text { Moving work in process } \\\text { Product engineering } & \text { Inventory control } \\\text { Product scheduling } & \text { Production -assembly } \\\text { Materials purchasing } & \text { Production area cleanup } \\\text { Production -machine setup } & \text { Human resources services } \\\text { Building maintenance } & \text { Product rework } \\\text { New product design } & \text { Depreciation of building }\end{array}$
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.

---

Definitions:

Critical Value

A cutoff point on a test statistic at or beyond which the null hypothesis is rejected in favor of the alternative hypothesis.

Hypothesis Test

A statistical method used to determine whether there is enough evidence to reject a null hypothesis in favor of an alternative hypothesis.

Unemployment Rate

The percentage of the labor force that is jobless and actively looking for employment.

Curriculum

An organized framework that outlines the subjects, course content, and learning objectives of an educational program.