Compute Lead Time

Jackson Fabricators Inc. machines metal parts for the automotive industry. Under the traditional manufacturing approach, the parts are machined through two processes: milling and finishing. Parts are produced in batch sizes of 75 parts. A part requires 2 minutes in milling and 7 minutes in finishing. The move time between the two operations for a complete batch is 8 minutes.

Under the lean philosophy, the part is produced in a cell that includes both the milling and finishing operations. The operating time is unchanged; however, the batch size is reduced to 3 parts and the move time is eliminated.

Determine the value-added, non-value-added, and total lead times, and the value-added ratio under the traditional and lean manufacturing methods. If required, round percentages to one decimal place.

	Traditional Philosophy		Lean Manufacturing Philosophy
Value-added time	fill in the blank 1	min	fill in the blank 2	min
Non-value-added time	fill in the blank 3	min	fill in the blank 4	min
Total lead time	fill in the blank 5	min	fill in the blank 6	min
Value-added ratio (as a percent)	fill in the blank 7	%	fill in the blank 8	%