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Traditional Philosophy Value Added Time 12 Non-Value- Added Time 13 14 15 16 17 18 19 20 21 22 23 24 Total Time Value-added time

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Traditional Philosophy Value Added Time 12 Non-Value- Added Time 13 14 15 16 17 18 19 20 21 22 23 24 Total Time Value-added time Within batch wait time Move time Total 365 Value Added Time Total Time = Value Added Ratio 3.3% 25 Lean Manufacturing Philosophy Value Added Non-Value Time Added Time 12 36 Total Time 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 Value-added time Within batch wait time Move time Total 48 Value Added Time / Total Time 12 48 Value Added Ratio 25.0% EX 12-6 Calculate lead time Obj. 1 lue-added, 12 minutes 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 min. utes in finishing. The move time between the two operations for a complete batch is 5 minutes, DIGI TERPLATE 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 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.)

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