Christmas Express makes wreaths in batch sizes of 31. The cutting & assembly pro

Question

Christmas Express makes wreaths in batch sizes of 31. The cutting & assembly process takes 5 minutes per wreath and the decorating process time is 10 minutes per wreath. It takes 6 minutes to move the wreaths from the cutting & assembly process to the decorating process. Compute the value-added, non-value-added, and the total lead time of the wreath process. Value-added lead time: Non-value-added lead time: Move time Within batch wait time Total lead time Compute the value-added ratio. Round to one decimal place.

Explanation / Answer

Value added leadtime = 15 minutes (cutting & assembly + decorating process time)

Non-value added lead time :

Move time = 6 minutes

within batch wait time = ( total time to perform operations) X ( batch size - 1)

within batch wait time = ( 5 + 10) X ( 31-1)

within batch wait time = 450 minutes

Total lead time = 471 minutes

Value added ratio = Value added lead time / Total lead time

Value added ratio = 15 / 471

Value added ratio = 3.20 %

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