Calculate Lead Time Williams Optical Inc is considering a new lean product cell The present manufacturing approach produces a product in four separate steps The production batch sizes are 45 units The process time for each step is as follows Process Step 1 5 minutes Process Step 2 8 minutes Process Step 3 4 minutes Process Step 4 3 minutes The time required to move each batch between steps is 5 minutes In addition, the time to move raw materials to Process Step 1 is also 5 minutes, and the time to move completed units from Process Step 4 to finished goods inventory is 5 minutes The new lean layout will allow the company to reduce the batch sizes from 45 units to 3 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 If required, round percentages to one decimal place In this exercise for Present Value added processing time Add together Process steps 1 4 Non value added time Total within batch wait time Move time, where Total Within Batch Wait Time (Total Time to Perform Operations) x (Batch Size 1) Add value added processing time non value added processing time to obtain total processing time Calculate Value Added Ratio Value Added Process Time Total Process Time In this exercise for Proposed Value added processing time Add together Process steps 1 4 Non value added time Total within batch wait time Move time, where Total Within Batch Wait Time is obtained by multiplying the process time by the remaining units in the batch (waiting their turn) Add value added processing time non value added processing time to obtain total processing time Calculate Value Added Ratio Value Added Process Time Total Process Time Value added time Non value added time Total lead time Value added ratio (as a percent) Present Approach Proposed Approach 20 V min 10 X min 30 X min 20 min 25 X min 45 X min 44 41 x 33 31 X

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Calculate Lead Time Williams Optical Inc. is considering a new lean product cell. The present manufacturing approach produces a product in four separate steps. The

Calculate Lead Time

Williams Optical Inc. is considering a new lean product cell. The present manufacturing approach produces a product in four separate steps. The production batch sizes are 45 units. The process time for each step is as follows:

Process Step 1	5 minutes
Process Step 2	8 minutes
Process Step 3	4 minutes
Process Step 4	3 minutes

The time required to move each batch between steps is 5 minutes. In addition, the time to move raw materials to Process Step 1 is also 5 minutes, and the time to move completed units from Process Step 4 to finished goods inventory is 5 minutes.

The new lean layout will allow the company to reduce the batch sizes from 45 units to 3 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. If required, round percentages to one decimal place.

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In this exercise for Present: Value-added processing time = Add together Process steps 1-4 Non-value-added time = Total within-batch wait time + Move time, where Total Within-Batch Wait Time = (Total Time to Perform Operations) x (Batch Size - 1) Add value-added processing time + non-value-added processing time to obtain total processing time. Calculate Value-Added Ratio = Value-Added Process Time Total Process Time In this exercise for Proposed: Value-added processing time = Add together Process steps 1-4 Non-value-added time = Total within-batch wait time + Move time, where Total Within-Batch Wait Time is obtained by multiplying the process time by the remaining units in the batch (waiting their turn) Add value-added processing time + non-value-added processing time to obtain total processing time. Calculate Value-Added Ratio = Value-Added Process Time Total Process Time

Value-added time Non-value-added time Total lead time Value-added ratio (as a percent) Present Approach Proposed Approach 20 V min 10 X min 30 X min 20 min 25 X min 45 X min 44.41 x % 33.31 X %