Michigan Machining Company machines metal parts for the automotive industry. Under the traditional manufacturing approach, the parts

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Michigan Machining Company machines metal parts for the automotive industry. Under the traditional manufacturing approach, the parts are machined through two processes: milling and finishing. Parts are produced in batch sizes of 60 parts. A part requires 5 minutes in milling and 7 minutes in finishing. The move time between the two operations for a complete batch is 10 minutes. Under the just-in-time philosophy, the part is produced in a cell that includes both the milling and finishing operations. The operating time is unchanged; however, the batch size is reduced to 5 parts and the move time is eliminated. Determine the value-added, non-value-added, total lead time, and the value-added ratio under the traditional and just-in-time manufacturing methods. Round whole percentages to one decimal place.

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Financial and Managerial Accounting Using Excel for Success

ISBN: 978-1111993979

1st edition

Authors: James Reeve, Carl S. Warren, Jonathan Duchac

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