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Horngren'S Financial And Managerial Accounting
Found in: Page 1063

Short Answer

Explain how the work cell manufacturing layout increases productivity.

Work cell manufacturing layout increases productivity by eliminating work in process, reducing wastage, and having less supervision in the manufacturing process.

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Step by Step Solution

Work cell

A work cell under JIT is an area that provides everything needed for the manufacturing process. A work cell is accompanied by required machinery and labor resources.

Increased productivity under work cell manufacturing layout

Unlike the traditional manufacturing system, the work cell layout does not separate the production process into separate departments. Under work cell employees work in a team and complete the work without any supervision. Production is done in small batches of units and quality inspection is done throughout the process. As soon as the finished product is moved out of the work cell, and the more raw material is procured for the supplier just in time. So, in this way, there is no work in process inventory in this system.

Thus, in this way, a demand-pull system works under a work cell layout that reduces waste and increases production without moving the work in process.

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