Resser Corporation Manufactures Serving Trays and Utensils for Use by Airlines

Essay

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.
$\begin{array}{ll}\text { Product inspection } & \text { Product marketing } \\\text { Product packaging } & \text { Accounting } \\\text { Materials storage } & \text { Moving work in process } \\\text { Product engineering } & \text { Inventory control } \\\text { Product schechling } & \text { Production-assembly } \\\text { Materials purchasing } & \text { Production area cleamup } \\\text { Production-machine setup } & \text { Human resources services } \\\text { Building maintenance } & \text { Product rework } \\\text { New product design } & \text { Depreciation of buiding } \end{array}$

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.