Calculate Lead Time Orion Devices Inc. is considering a new just-in-time product

Question

Calculate Lead Time 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 48 units. The process time for each step is as follows: The time required to move each batch between steps is 14 minutes. In addition, the time to move raw materials to Process Step 1 is also 14 minutes, and the time to move completed units from Process Step 4 to finished goods inventory is 14 minutes. The new just-in-time layout will allow the company to reduce the batch sizes from 48 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. If required, round percentages to one decimal place. Value-added time min min Non-value-added time min min Total lead time min min Value-added ratio (as a percent) % %

Explanation / Answer

Lead time is the time between the initiation and completion of a production process. PRESENT APPROACH Per batch of 48 units Per unit Value added time 6+9+4+8 27 min 0.5625 min Non value added time 14*4 56 min 1.167 min Lead time = value added + Non value added time 83 min 1.729 min Value added ratio = 27min/83 min 0.5625/1.729 32.53% 32.50% PROPOSED APPROACH Per batch of 3 units Per unit Value added time 6+9+4+8 27 min 9 min Non value added time (14-2)*4 48 min 16 min Lead time = value added + Non value added time 75 min 25 min Value added ratio = 27/75min 9/25 min 36% 36%

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.