Calculate Lead Time 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 64 units. The process time for each step is as follows: Process Step 1 7 minutes Process Step 2 5 minutes Process Step 3 4 minutes Process Step 4 9 minutes The time required to move each batch between steps is 12 minutes. In addition, the time to move raw materials to Process Step 1 is also 12 minutes, and the time to move completed units from Process Step 4 to finished goods inventory is 12 minutes. The new lean layout will allow the company to reduce the batch sizes from 64 units to 4 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. If required, round percentages to one decimal place. Present Approach Proposed Approach Value-added time Non-value-added time Total lead time Value-added ratio (as a percent) min min min % min min min %

Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter27: Lean Manufacturing And Activity Analysis
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Problem 7E: Calculate lead time Williams Optical Inc. is considering a new lean product cell. The present...
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Calculate Lead Time
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 64 units. The process time for each step is as follows:
Process Step 1
Process Step 2
Process Step 3
Process Step 4
7 minutes
5 minutes
4 minutes
9 minutes.
The time required to move each batch between steps is 12 minutes. In addition, the time to move raw materials to Process Step 1 is also 12 minutes, and the time to move completed units from Process Step 4 to finished goods inventory is 12
minutes.
The new lean layout will allow the company to reduce the batch sizes from 64 units to 4 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.
Value-added time
Non-value-added time
Total lead time
Value-added ratio (as a percent)
Determine the value-added, non-value-added, and total lead times, and the value-added ratio under the present and proposed production approaches. If required, round percentages to one decimal place.
Present Approach Proposed Approach
min
min
min
%
min
min
min
%
Transcribed Image Text:Calculate Lead Time 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 64 units. The process time for each step is as follows: Process Step 1 Process Step 2 Process Step 3 Process Step 4 7 minutes 5 minutes 4 minutes 9 minutes. The time required to move each batch between steps is 12 minutes. In addition, the time to move raw materials to Process Step 1 is also 12 minutes, and the time to move completed units from Process Step 4 to finished goods inventory is 12 minutes. The new lean layout will allow the company to reduce the batch sizes from 64 units to 4 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. Value-added time Non-value-added time Total lead time Value-added ratio (as a percent) Determine the value-added, non-value-added, and total lead times, and the value-added ratio under the present and proposed production approaches. If required, round percentages to one decimal place. Present Approach Proposed Approach min min min % min min min %
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