PR 27-2A Lead time Obj. 1 Sound Tek Inc. manufactures electronic stereo equipment. The manufacturing process includes printed circuit (PC) board assembly, final assembly, testing, and shipping. 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 45 printed circuit boards. Each board requires 5 minutes of board assembly time. After each batch is completed, - the operator moves the assembled boards to the final assembly area. This move takes 10 minutes to complete. The final assembly for each stereo unit requires 15 minutes and is also done in batches of 45 units. A batch of 45 stereos is moved into the test building, which is across the street. The move takes 20 minutes. Before conducting the test, the test equipment must be set up for the particular stereo model. The test setup requires 25 minutes. The units wait while the setup is performed. In the final test, the 45-unit batch is tested one at a time. Each test requires 9 minutes. The completed batch, after all testing, is sent to shipping for packaging and final shipment to customers. A complete batch of 45 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 10 minutes per unit. Instructions 1. Determine the amount of value-added and non-value-added lead time and the value-added ratio in this process for an average stereo unit in a batch of 45 units. Round percentages to one decimal place. Categorize the non-value-added time into wait and move time. How could this process be improved so as to reduce the amount of waste? 2. ? 4. Raw and In Process Inventory, S22,400 w Value-added time (minutes): Assembly of PC board Stereo assembly Time to inspect one unit Pack and label Total Non-value-added time (minutes): Wait time: Within-batch wait time - PC board assembly Within-batch wait time - final assembly Within-batch wait time-testing Within batch wait time - shipping Test setup Total wait time Move time: Move from PC board assembly to final assembly Move from final assembly to testing Total move time Total non-value-added time IN Total lead time (minutes) Value Added Time / Total Time Value Added Ratio