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Compute Lead Time Isaacson Dental Inc. is considering a new lean product cell. The present manufacturing approach produces a product in four separate steps.
Compute Lead Time Isaacson Dental Inc. is considering a new lean product cell. The present manufacturing approach produces a product in four separate steps. The production batch sizes are 50 units. The process time for each step is as follows: Process Step 1 Process Step 2 Process Step 3 Process Step 4 6 minutes 12 minutes 9 minutes 3 minutes The time required to move each batch between steps is 6 minutes. In addition, the time to move raw materials to Process Step 1 is also 6 minutes, and the time to move completed units from Process Step 4 to finished goods inventory is 6 minutes. The new lean layout will allow the company to reduce the batch sizes from 50 units to 2 units. The time required to move each batch between steps and the inventory locations will be reduced to 1 minute. 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 (a) present and (b) proposed production approaches. If required, round percentages to one decimal place. Present Approach Proposed Approach Value-added time 30 min 30 min Non-value-added time 1,526 X min 32 X min Total lead time 1,556 X min 62 X min Value-added ratio (as a percent) % 48.4 X %
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