Lead Time

The Swift Mountain Ski Company manufactures skis in the finishing and assembly process. Skis are manufactured in 30-ski batch sizes. The finishing time is 14 minutes per ski. The assembly time is 10 minutes per ski. It takes 8 minutes to move a batch of skis from finishing to assembly.

a. Compute the value-added, non-value-added, and total lead time of this process.

Value-added lead time 24	minutes CORRECT
Non-value-added lead time	minutes
Total lead time	minutes

b. Compute the value-added ratio. Round to one decimal place. %

Feedback

a. Recall that lead time can be classified as one of the following: 1. Value-added lead time, which is the time spent in converting raw materials into a finished unit of product. 2. Non-value-added lead time, which is the time spent while the unit of product is waiting to enter the next production process or is moved from one process to another. In this exercise: Value-added lead time = Finishing time + Assembly time Non-value-added lead time = Total within-batch wait time + Move time, where Total Within-Batch Wait Time = (Total Time to Perform Operations) x (Batch Size - 1) Add value-added lead time + non-value-added lead time to obtain total lead time.

b. Calculate Value-Added Ratio = Value-Added Lead Time Total Lead Time

Learning Objective 1.

Lead Time The Swift Mountain Ski Company manufactures skis in the finishing and assembly process. Skis are manufactured in 30-ski batch sizes. The finishing time is 14 minutes ski. The assembly time is 10 minutes per ski. It takes 8 minutes to move a batch of skis from finishing to assembly. a. Compute the value-added, non-value-added, and total lead time of this process. Value-added lead time 24 minutes Non-value-added lead time 15 x minutes 43 x minutes Total lead time b. Compute the value-added ratio. Round to one decimal place. 65.12 X Feedback Check My Work a. Recall that lead time can be classified as one of the following: 1. Value-added lead time, which is the time spent in converting raw materials into a finished unit of product. 2. Non-value-added lead time, which is the time spent while the unit of product is waiting to enter the next production process or is moved from one process to another. In this exercise: Value-added lead time E Finishing time Assembly time Add value-added lead time non-value-added lead time to obtain total lead time. b. Calculate Value-Added Ratio Value-Added LeadTime Total Lead Time Learning objective 1