Lead Time The Snow Glide Ski Company manufactures skis in the finishing and asse

Question

Lead Time The Snow Glide Ski Company manufactures skis in the finishing and assembly process. Skis are manufactured in 40-ski batch sizes. The finishing time is 16 minutes per ski. The assembly time is 12 minutes per ski. It takes 15 minutes to move a batch of skis from finishing to assembly. a. Compute the value-added, non-value-added, and total lead time of this process. Value-added lead time 28 minutes Non-value-added lead time minutes Total lead time minutes b. Compute the value-added ratio. Round to one decimal place. %

Explanation / Answer

a. Value-added lead time = 16 + 12 = 28 minutes

Non-value-added lead time = 15 minutes

Total lead time = 28 + 15 = 43 minutes

b. the value-added ratio = 28 / 43 = 65.12%.

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