RAD Technologies Inc. is considering a new just-in-time product cell. The presen
ID: 2385282 • Letter: R
Question
RAD Technologies 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 50 units. The process time for each step is as follows:Process Step 1 4 Minutes
Process Step 2 7 Minutes
Process Step 3 9 Minutes
Process Step 4 5 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 just-in-time layout will allow the company to reduce the batch sizes from 50 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, total lead times, and the value-added ratio under the present and proposed production approaches. Round percentages to one decimal place.
Explanation / Answer
initial case lt = 50(4+7+9+5)+ (5*12) = 1310
final case lt = 3 (4+7+9+5) + 5*2 = 85
value addded = 4+7+9+5 = 25 for both cases per unit
non value added = 60 fist case
non value added = 10 2nd case
value added ratio = 3*25/50*25 = 0.06
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.