• How do lead time calculations help companies make decisions?

EX 12-6 Calculate lead time Oh]. 1 Flint Fabricators Inc. machines metal parts for the automotive industry. Under the traditional manufacturing approach, the parts are machined through two processes: milling and nishing. Parts are produced in batch sizes of 50 parts. A part requires 5 minutes in milling and 7 min- utes in nishing. 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 nishing 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 Value-Added Non-Value- Total Time Added Time Time Value-added time Within batch wait time Move time Total Value-Added Time / Total Time = Value-Added Ratio Lean Manufacturing Philosophy Value-Added Non-Value- Total Time Added Time Time Value-added time Within batch wait time Move time Total Value-Added Time / Total Time = Value-Added Ratio