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 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.