Question
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 45 units. The process time for each step is as follows:
Step | Time (in minutes) |
Process Step 1 | 5 |
Process Step 2 | 8 |
Process Step 3 | 4 |
Process Step 4 | 3 |
The time required to move each batch between steps is 4 minutes. In addition, the time to move raw materials to Process Step 1 is also 4 minutes, and the time to move completed units from Process Step 4 to finished goods inventory is 6 minutes.
The new lean layout will allow the company to reduce the batch sizes from 45 units to 3 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 percentages to one decimal place.)
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