PR 26-2B Lead time Obj. 1 Master Chef Appliance Company manufactures home kitche

Question

PR 26-2B Lead time Obj. 1 Master Chef Appliance Company manufactures home kitchen appliances. The manufacturing process includes stamping, final assembly, testing, and shipping. In the stampin are responsible for stamping the steel outer surface of the appliance. The stamping operation is set up prior to each run. A run of 40 stampings is completed after each setup. A setup requires 60 minutes. The parts wait for the setup to be completed before stamping begins. Each stamping requires 5 minutes of operating time. After each batch is completed, the operator moves the stamped covers to the final assembly area. This move takes 10 minutes to complete. The final assembly for each appliance unit requires 22 minutes and is also done in batches of 40 appliance units. The batch of 40 appliance units is moved into the test building g operation, a number of individuals d Windows

Explanation / Answer

Value-added time (minutes) Stamping 5 Appliane assembly 22 Time to test one unit 8 Pack and label 15 Total 50 Non-value added items (minutes) Wait-time: Within batch wait time - stamping 195 (39 x 5) Within batch wait time - final assembly 858 (39 x 22) Within batch wait time - testing 312 (39 x 8) Within batch wait time - shipping 585 (39 x 15) Stamping Set-up 60 Total wait time 2010 This is a batch of 40 units. Therefore the wait time will be for 39 units at each process. Move time: Move from stampling to final assembly 10 Move from final assembly to testing 25 Total move time 35 Total non-value added time 2045 Total lead time 2095 Value-added time / Total lead time Value-added ratio 50 / 2095 2.39%

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