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Lead Time Sound Tok Inc, manufactures electronic stereo equipment. The manufacturing process indudes printed circuit (PC) board assembly, final assembly. testing, and shippino. In the
Lead Time Sound Tok Inc, manufactures electronic stereo equipment. The manufacturing process indudes printed circuit (PC) board assembly, final assembly. testing, and shippino. In the PC board assembly operation, a number of individuals are responsible for assembling electronic components into printed circuit boards. Each operator is responsible for soldering components according to a given set of instructions. Operators work on batches of 50 printed circuit boards. Each board requires 4 minutes of board assembly time. Alter each batch is completed, the operator moves the assembled boards to the final assembly area. This move takes 12 minutes to complete The final assembly for each stereo unit requires 21 minutes and is also done in batches of 50 units. A batch of 50 stereos is moved into the test building, which is across the street. The move taken 20 minutes. Before conducting the test, the test equipment must be set up for the particular stereo modul The test setup requires 30 minutes. The units walt while the setup tu performed. In the final test, the 50-unit batch is tested one at a time. Each test requires 10 minutes. The completed batch, after all testino, in sent to shipping for packaging and final shipment to customers. A complete batch of 50 units is sent from testing to shipping, The Shipping Department is located next to testing. Thus, there is no move time between these two operations Packaging and labeling requires to minutes per unit 1. Determine the amount of value added and on value added load time and the value-added ratio in this process for an average stereo unit in a batch of 50 units. Categonize the non value added time into wait and move time, Round the percentage to one decimal place. Value-added lead time 45 min Non value added lead time: Wait time lead time 1,745 X min.
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