Question
boom boom manufactures portable stereo equipment. The manufacturing process includes printed circuit board assembly, final assembly, testing, and shipping. In the PC board assembly operation,
boom boom manufactures portable stereo equipment. The manufacturing process includes printed circuit board assembly, final assembly, testing, and shipping. In the PC board assembly operation, a many people are responsible for assembling electronic components into printed circuit boards. Each person is responsible for soldering components according to a given set of instructions. People work on batches of 50 printed circuit boards. Each board requires 4 minutes of board assembly time. After each set is completed, the person moves the assembled boards to the final assembly area. Moving them takes 10 minutes.
The final assembly for each stereo requires 18 minutes and is also done in batches of 50 units. A batch of 50 stereos is moved into the test building, which is across the street. The move takes 20 minutes. Before conducting the test, the test equipment must be set up for the particular stereo model. The test setup requires 30 minutes. The units wait while the setup is performed. In the final test, the 50-unit set is tested one at a time. Each test requires 6 minutes. The completed batch, after all testing, is sent to shipping for packaging and final shipment to customers. A complete set of 50 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 labeling requires 6 minutes per unit.
1. Determine the amount of value-added and non-value-added lead time and the value-added ratio in this process for an average stereo unit in a batch of 50 units. Categorize the non-value-added time into wait and move time. Round the percentage to one decimal place.
Value-added lead time | fill in the blank | ||
Non-value-added lead time: | |||
Wait time lead time | fill in the blank | ||
Move time lead time | fill in the blank | ||
Total non-value-added lead time | fill in the blank | ||
Total lead time | fill in the blank | ||
Value-added ratio (as a percent) | fill in the blank |
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