Williams Optical Inc. is considering a new just-in-time product cell. The present manufacturing approach produces a product in four separate steps. The production batch sizes are 40 units. The process time for each step is as follows:

Process Step 1	6 minutes
Process Step 2	10 minutes
Process Step 3	6 minutes
Process Step 4	8 minutes

The time required to move each batch between steps is 8 minutes. In addition, the b. 105 minutes time to move raw materials to Process Step 1 is also 8 minutes, and the time to move completed units from Process Step 4 to finished goods inventory is 8 minutes.

The new just-in-time layout will allow the company to reduce the batch sizes from 40 units to 5 units. The time required to move each batch between steps and the inventory locations will be reduced to 2 minutes. The processing time in each step will stay the same.

Determine the value-added, non-value-added, and total lead times, and the value-added ratio under the present and proposed production approaches. Round whole percentages to one decimal place.

	Present Approach
						Value-Added		Non-Value-		Total
						Time		Added Time		Time
	Processing time					30		-		30
	Within batch wait time					-		1,170		1,170
	Move time					-		-	*	-	*
	Total
	Value-Added Time / Total Time = Value-Added Ratio
				1,170	*	24.6%	*
	Proposed Approach
						Value-Added		Non-Value-		Total
						Time		Added Time		Time
	Processing time					30		-		-	*
	Within batch wait time					-		120		-	*
	Move time					-		-	*	-	*
	Total					30		120	*
	Value-Added Time / Total Time = Value-Added Ratio
				20	*	24.6%	*