Orion Devices Inc. is considering a new just-in-time product cell. The present m
ID: 2452530 • Letter: O
Question
Orion Devices 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 60 units. The process time for each step is as follows:
The time required to move each batch between steps is 16 minutes. In addition, the time to move raw materials to Process Step 1 is also 16 minutes, and the time to move completed units from Process Step 4 to finished goods inventory is 16 minutes.
The new just-in-time layout will allow the company to reduce the batch sizes from 60 units to 4 units. The time required to move each batch between steps and the inventory locations will be reduced to 3 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. If required, round percentages to one decimal place.
Process Step 1 9 minutes Process Step 2 8 minutes Process Step 3 5 minutes Process Step 4 4 minutesExplanation / Answer
Both Case
Valued added time = 9+8+5+4 = 26 Min
Present Approach
Valued added time = 9+8+5+4 = 26 Min
Non value Added Time = 16+16+16+16+16 = 80 Min
Total lead Time = 80+26 = 106 Min
Value-added ratio (as a percent) = 26/106
Value-added ratio (as a percent) = 24.53%
Proposed Approach
Valued added time = 9+8+5+4 = 26 Min
Non value Added Time = 3+3+3+3+3 = 15 Min
Total lead Time = 15+26 = 41 Min
Value-added ratio (as a percent) = 26/41
Value-added ratio (as a percent) = 63.41%
Present Approach Proposed Approach Value-added time 26 min 26 min Non-value-added time 80 min 15 min Total lead time 106 min 41 min Value-added ratio (as a percent) 24.53 % 63.41 %Related Questions
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