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Audio Max Electronics Company manufactures electronic stereo equipment. The manu

ID: 2452527 • Letter: A

Question

Audio Max Electronics Company manufactures electronic stereo equipment. The manufacturing process includes printed circuit (PC) card assembly, final assembly, testing, and shipping. In the PC card assembly operation, a number of individuals are responsible for assembling electronic components into printed circuit boards. Each operator is responsible for soldering components according to a given set of instructions. Operators work on batches of 50 printed circuit boards. Each board requires 4 minutes of assembly time. After each batch is completed, the operator moves the assembled cards to the final assembly area. This move takes 10 minutes to complete.

The final assembly for each stereo unit requires 22 minutes and is also done in batches of 50 units. The batch of 50 stereos is moved into the test building, which is across the street. The move takes 20 minutes. Before conducting the test, the test equipment must be set up for the particular stereo model. The test setup requires 30 minutes. The units wait while the setup is performed. In the final test, the 50-unit batch is tested one at a time. Each test requires 12 minutes. The completed batch, after all testing, is sent to shipping for packaging and final shipment to customers. A complete batch of 50 units is sent from final assembly to shipping. The Shipping Department is located next to final assembly. Thus, there is no move time between these two operations. Packaging and labeling requires 9 minutes per unit.

Determine the amount of value-added and non-value-added lead time and the value-added ratio in this process for an average stereo unit in a batch of 50 units. Categorize the non-value-added time into wait and move time. Round the percentage to one decimal place.

Value-added minutes min Non-value-added minutes: Wait time min Move time min Total non-value-added time min Total lead time min Value-added ratio (as a percent) %

Explanation / Answer

Assembly time                                             

4 minutes

Assembled cards to final assemble area      

10 minutes

final assembly for each stereo unit

22 minutes

moved into the test building

20 minutes

Before test, equipment set up

30 minutes

Final test

12 minutes

Packing and labeling

9 minutes

Value added minutes = Assembly time + Final assembly for each stereo unit + Final test + Packing and labeling

                                   = 4+22+12+9

                                   = 47 minutes

Non value added minutes:

Wait time = before test, equipment set up

                 = 30 minutes

Move time = Assembled cards to final assemble area + moved into the test building

                   = 10+20

                   = 30 minutes

Therefore, total Non value added minutes = Wait time + Move time

                                                                    = 30+30

                                                                    = 60 Minutes

Total lead time is as equal as value added time = 47 minutes

Value added ratio = Total process time/Total time

                              = 47/107*100

                             = 43.9%

Value-added minutes

47

min

Non-value-added minutes:

Wait time

min

30

Move time

min

30

Total non-value-added time

60

min

Total lead time

47

min

Value-added ratio (as a percent)

13.92 %


Assembly time                                             

4 minutes

Assembled cards to final assemble area      

10 minutes

final assembly for each stereo unit

22 minutes

moved into the test building

20 minutes

Before test, equipment set up

30 minutes

Final test

12 minutes

Packing and labeling

9 minutes