Calculate Lead Time

Williams Optical 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 40 units. The process time for each step is as follows:

Exercise 12-7 Question 9 of 15 Hint(s) Check My Work eBook Calculate Lead Time Williams optical 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 40 units. The process time for each step is as follows: Process 1 6 minutes Step Process Step 2 0 minutes Process Step 3 6 minutes Process Step 4 8 minutes The time required to move each batch between steps is 8 minutes. In addition, the time to move raw materials to Process Step 1 is also 8 minutes, and the time to move completed units from Process Step 4 to finished goods inventory is 8 minutes. The new just-in-time layout will allow the company to reduce the batch sizes from 40 units to 5 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. Present Approach Proposed Approach Value-added time min 30 min 30 1170 3 min Non-value-added time min 130 120 3 min 160 min Total lead time Value-added ratio (as a percent) 2.27 18.75