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Williams Optical Inc. is considering a new lean product cell. The present manufacturing approach produces a product in four separate steps. The production batch sizes
Williams Optical Inc. is considering a new lean product cell. The present manufacturing approach produces a product in four separate
steps. The production batch sizes are units. The process time for each step is as follows:
Process Step
minutes
Process Step
minutes
Process Step
minutes
Process Step
minutes
The time required to move each batch between steps is minutes. In addition, the time to move raw materials to Process Step is
also minutes, and the time to move completed units from Process Step to finished goods inventory is minutes.
The new lean layout will allow the company to reduce the batch sizes from units to units. The time required to move each batch
between steps and the inventory locations will be reduced to minutes. The processing time in each step will stay the same.
Determine the valueadded, nonvalueadded, and total lead times, and the valueadded ratio under the present and proposed
production approaches. If required, round percentages to one decimal place.
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