EX 12-6 Calculate lead time Flint 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 30 parts. A part requires 5 minutes in milling and 7 minutes in finishing. The move time between the two operations for a complete batch is 5 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 4 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. (Round percentages to one decimal place.)

Traditional Philosophy Lean Manufacturing Philosophy Value-Added Time / Total Time = Value-Added Ratio Traditional Philosophy Lean Manufacturing Philosophy Value-Added Time / Total Time = Value-Added Ratio