Question

McIntyre Industries manufactures iPhone case covers. Sarabeth Anderson, the CEO, is trying to decide whether to adopt a lean thinking model. She expects that adopting lean production would save $77,000 in warehousing expenses and $39,600 in spoilage costs. Adopting lean production will require several one-time up-front expenditures: S25,000 for an employee training program, S89,000 to streamline the plant's production process, and 37,000 to identify suppliers that wil guarantee zero defects and on-time delivery Read the requirements. Requirement 1. What are the total costs of adopting lean production? The total costs of adopting lean production are

Answer 1

1
Employee training program	25000
Streamlining the plant's production process	89000
Identifying suppliers	7000
The total costs of adopting lean production are	121000