Question
11)Extreme Wreaths, Inc. makes wreaths in batch sizes of 15 at a time. The cutting & assembly process takes 10 minutes per wreath, and the
11)Extreme Wreaths, Inc. makes wreaths in batch sizes of 15 at a time. The cutting & assembly process takes 10 minutes per wreath, and the decorating process time is 7 minutes per wreath. It takes 5 minutes to move the wreaths from the cutting & assembly process to the decorating process.
In a effort to improve the lead time, the company has tried reducing the batch size to 10 units. The new process is as follows: cutting & assembly process - 8 minutes. The decorating process is still 7 minutes per wreath. It takes 5 minutes to move the wreaths from the cutting & assembly process to the decorating process.
a. Compute the value-added, non-value-added, and the total lead time of the wreath process for both the old and the new manufacturing process.
Old process | New process | |
Value-added lead time | ||
Non-value-added lead time: | ||
Move time | ||
Within batch wait time | ||
Total lead time |
b. Compute the value-added ratio for both the old and new process. Round to one decimal place.
Old process | New process | |
Value-Added Ratio | % | % |
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