Prior to Installing a JIT System, Plasticize Company Used Machine

question 32

Essay

Prior to installing a JIT system, Plasticize Company used machine hours to assign maintenance costs to its three products of 3-inch, 5-inch, and 7-inch plastic tubing.
The maintenance costs totaled $120,000 per year. The machine hours used by each product and the quantity produced of each product are as follows:
After installing JIT, three manufacturing cells were created and the cell workers were trained to perform maintenance. Maintenance costs for the three cells still totaled $120,000; however, these costs are now traceable to each cell.
Required:

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Definitions:

Modeled Behavior

Actions or responses learned through observing and replicating the behavior of others.

Positive or Negative Consequences

Outcomes or effects that may be favorable or unfavorable as a result of an action or decision.

Neutral Outcomes

Results of an action or experiment that neither significantly benefit nor harm the situation or subjects involved.

Self-Efficacy

An individual's belief in their own ability to succeed in specific situations or accomplish a task.