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Calculate Lead me Orion Devices Inc. is considering a new just-in-time product cell. The present manufacturing approach produces a product in four separate steps. The
Calculate Lead me 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 70 units. The process time for each step is as follows: Process Step 1 Process Step 2 Process Step 3 Process Step 4 The time required to move each batch between steps is 15 minutes. In addition, the time to move raw materials to Process Step 1 Is also 15 minutes, and the time to move completed units from Process Step 4 to finished goods inventory is 15 minutes. The new just-in-time layout will allow the company to reduce the batch sizes from 70 units to 4 units. The time required to move each batch between steps and the inventory locations will be reduced to 3 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. If required, round percentages to one decimal place 7 minutes 5 minutes 4 minutes 9 minutes Present Approach Proposed Approach Value-added time Non-value-added time Total lead time Value-added ratio (as a percent) min min min min
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