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
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