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Calculate Lead Time Williams Optical Inc. is considering new lean product cell. The present manufacturing approach produces a product in four separate steps. The
Calculate Lead Time Williams Optical Inc. is considering new lean product cell. The present manufacturing approach produces a product in four separate steps. The production batch sizes are 57 units. The process time for each step is as follows: Process Step 1 Process Step 2 Process Step 3 Process Step 4 7 minutes 5 minutes 4 minutes 9 minutes The time required to move each batch between steps is 11 minutes. In addition, the time to move raw materials to Process Step 1 is also 11 minutes, and the time to move completed units from Process Step 4 to finished goods inventory is 11 minutes. The new lean layout will allow the company to reduce the batch sizes from 57 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, and 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 Non-value-added time Total lead time Value-added ratio (as a percent) 25 min 1,400 X min 25 min 1,400 X min min min % % Feedback Check My Work 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 Learning Objective 1.
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