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Calculate Lead Time Michigan Machining Company machines metal parts for the auto

ID: 2489966 • Letter: C

Question

Calculate Lead Time Michigan Machining Company machines metal parts for the automotive industry. Under the traditional manufacturing approach, the parts are machined through two processes: milling and finishing. Parts are produced in batch sizes of 80 parts. A part requires 4 minutes in milling and 6 minutes in finishing. The move time between the two operations for a complete batch is 7 minutes. Under the lean manufacturing philosophy, the part is produced in a cell that includes both the milling and finishing operations. The operating time is unchanged; however, the batch size is reduced to 4 parts and the move time is eliminated. Determine the value-added, non-value-added, and total lead times, and the value-added ratio under the traditional and lean manufacturing methods. 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

Value Added Time- It is the time in which actual value is added to the product or the value of process which a customer is willing to pay. example-production time

Non-value added time- The time spent on process which does not add any value to the product, such as move time, inspection time.

Lead Time- It is also Known as Throuput time or Turnaround time, which means total time spent on a product from start to finish, such as process time+ wait time+movement time.

1.Traditional Philisophy=

-Value added time-Process time of milling+ process time of finishing

4Mins*80parts+6Mins*80parts

320+480=800Mins

-Non Value Added Time=Movement time

7Minustes

-Value Added Ratio=Value Added Time/Value Added Time+Non-Value Added Time*100

800/800+7*100

99.13%

-Lead time=Total of Process time and movement time

800+7

807Minutes

2.Lean Philisophy

-Value Added Time= Process time of Miller+Process time of Finishing

4Minutes*4Parts+6Minutes*4Parts

16+24=40Minutes

-Non-Vlaue Added Time=Nil( As no Movement Time is Spent)

-Value Added Rati=Value Added Time/Value Added Time+Non Value Added Time*100

40/40+0*100

100%

Lead Time-40Minutes + 0

40Minutes

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