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Value Added Activities (VA) Non-Value-Added Activities (NVA) Order waits on order board @ (5 minutes per order) X(1 hr/60 min) ($5 per hour) = $0.417

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Value Added Activities (VA) Non-Value-Added Activities (NVA) Order waits on order board @ (5 minutes per order) X(1 hr/60 min) ($5 per hour) = $0.417 Chef picks up order and checks "Is it accurate?" @ (1 minute per order) (1 hr/60 min) X($30 per hour) = $0.50 If order is accurate, chef stages raw materials @ (4 minutes per order) (1 hr/60 min) X($30 per hour) = $2.00 Chef cooks meal using ovens @ (12 minutes per order) (1 ht/ 60min) x ($30 per hour) = $6.00 labor cost (10 minutes per order) (1 ht/60 min) X ($10/hour oven cost) = $1.67 equipment cost Total labor + Oven cost = $7.67 Chef assembles order @ (3 minutes per order) X(1 hr/60 minutes) X($30 per hour) = $1.50 Prepared order waits for walter to pick up customer's order@ (5 minutes per order) X (1 ht/60 min) X($60 per hour) = $5.00 30 minutes Total Time = 20 minutes (VA time) + 10 minutes (NVA time) Total Cost = $11.67 (VA cost) + $5.417 (NVA cost) = $17.087 Refer to Exhibit 7.7, the restaurant value stream map, and recompute the total value-added and non- value-added time and cost given the following new information. The chef's time is valued at $30 per hour, oven operation at $10 per hour, precooking order waiting time at $5 per hour, and postcooking order waiting time at $60 per hour. The $60 estimate reflects the cost of poor quality for a dinner waiting too long that might be delivered to the customer late (and cold). If a restaurant uses iPads to place orders and notify waiters when the customer's order is ready, the time on the order board (now an electronic order board) decreases from five to one minute, and the prepared order wait time decreases from five to one minute. Round your answer for the total revised time to the nearest whole number and round your answer for the total revised cost to three decimal places. Total Revised Time: minutes Total Revised Cost: $

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