i. Analyse and identify the production and order lead times, inventory cost, switchover costs for different products, bottlenecks arising out of product testing and wastage at Synthite?
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production/Lean production: ‘demand-pull’ manufacturing system that manufactures each component ina production line as soon as, and only when, needed by the next step in the production line.(a)Aims to:-Meet customer demand in a timely manner.-High-quality products.-Lowest possible cost.(b) Features:-Production organized in a manufacturing cell.-Workers trained to be multiskilled.-Defects aggressively eliminated.-Set-up time and manufacturing lead time is reduced.-Suppliers selected on the basis of their ability to deliver quality materials in a timely manner.(c) Benefits:-Lower cost of inventory.-Emphasis on improving quality by eliminating causes of rework, scrap and waste.-Lower manufacturing lead times.(d) Performance measures:-Inventory turnover ratio (COGS/Average inventory).-Manufacturing lead time.-Units produced per hour.-Number of days of inventory in hand.-Set-up time as a percentage of total manufacturing time.-Number of defective units as a percentage of total units produced.Enterprise resource planning (ERP) systems: an integrated set of software modules covering accounting,distribution, manufacturing, purchasing, human resources and other functions.Backflush costing and Standard costing: standard costing uses sequential tracking to track costs as productspass through each of the 4 stages, whereas, backflush costing omits recording some entries of insignificantvalue or unmaterial value.Lean accounting: costing method that supports creating value for customer by costing the entire valuestream, rather than individual products or departments, thereby eliminating waste in the accounting process.