Master Chef Appliance Company manufactures home kitchen appliances. The manufacturing process includes stamping, final assembly, testing, and
Question:
The final assembly for each appliance unit requires 22 minutes and is also done in batches of 40 appliance units. The batch of 40 appliance units is moved into the test building, which is across the street. The move takes 25 minutes. In the final test, the 40-unit batch is tested one at a time. Each test requires 8 minutes. The completed units are sent to shipping for packaging and final shipment to customers. A complete batch of 40 units is sent from testing to shipping. The Shipping Department is located next to testing. Thus, there is no move time between these two operations. Packaging and shipment labeling requires 15 minutes per unit.
Instructions
1. Determine the amount of value-added and non-value-added lead time and the value-added ratio in this process for an average kitchen appliance in a batch of 40 units. Round percentages to one decimal place. Categorize the non-value-added time into wait and move time.
2. How could this process be improved so as to reduce the amount of waste in the process?
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Related Book For
Financial And Managerial Accounting
ISBN: 9781337119207
14th Edition
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac
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