Orion Devices Inc. is considering a new just-in-time product cell. The present manufacturing approach produces a product in four separate steps. The production batch sizes are 60 units. The process time for each step is as follows:
Process Step 1...................................5 minutes
Process Step 2...................................8 minutes
Process Step 3...................................9 minutes
Process Step 4...................................6 minutes
The time required to move each batch between steps is 12 minutes. In addition, the time to move raw materials to Process Step 1 is also 12 minutes, and the time to move completed units from Process Step 4 to finished goods inventory is 12 minutes. The new just-in-time layout will allow the company to reduce the batch sizes from 60 units to 4 units. The time required to move each batch between steps and the inventory locations will be reduced to 2 minutes. The processing time in each step will stay the same. Determine the value-added, non-value-added, total lead times, and the value-added ratio under the present and proposed production approaches. Round whole percentages to one decimal place.