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Calculate The elapsed time between starting a unit of product into the beginning

ID: 2570541 • Letter: C

Question

Calculate The elapsed time between starting a unit of product into the beginning of a process and its completion.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 68 units. The A sequence of activities linked together for performing a particular task.process time for each step is as follows:

The time required to move each batch between steps is 11 minutes. In addition, the time to move raw materials to Process Step 1 is also 11 minutes, and the time to move completed units from Process Step 4 to finished goods inventory is 11 minutes.

The new just-in-time layout will allow the company to reduce the batch sizes from 68 units to 4 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.

Process Step 1 7 minutes Process Step 2 5 minutes Process Step 3 4 minutes Process Step 4 9 minutes

Explanation / Answer

Solution :-

Working Note :-

Present Approach :-

Valued added time = 7+5+4+9 = 25 Min

Non value Added Time = 11+11+11+11+11 = 55 Min

Total lead Time = 55+25 = 80 Min

Value-added ratio = 25/80

Value-added ratio = 31.25%

Proposed Approach :-

Valued added time = 7+5+4+9 = 25 Min

Non value Added Time = 2+2+2+2+2 = 10 Min

Total lead Time = 10+25 = 35 Min

Value-added ratio = 25/35

Value-added ratio = 71.43%

Present Approach Proposed Approach Value-Added time 25 Min. 25 Min. Non-value added time 55 Min. 10 Min. Total Lead time 80 Min. 35 Min. Value added Ratio 31.25% 71.43%
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