Orion Devices Inc. is considering a new just-in-time product cell. The present manufacturing...
Question:
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 52 units. The process time for each step is as follows:
| Process Step 1 | 4minutes |
| Process Step 2 | 7minutes |
| Process Step 3 | 9minutes |
| Process Step 4 | 5minutes |
The time required to move each batch between steps is 17 minutes. In addition, the time to move raw materials to Process Step 1 is also 17 minutes, and the time to move completed units from Process Step 4 to finished goods inventory is 17 minutes.
The new just-in-time layout will allow the company to reduce the batch sizes from 52 units to 3 units. The time required to move each batch between steps and the inventory locations will be reduced to 3 minutes. The processing time in each step will stay the same.
Required:
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.
| Present Approach | Proposed Approach | |
|---|---|---|
| Value-added time | _____ min | _____ min |
| Non-value-added time | _____ min | _____ min |
| Total lead time | _____ min | _____ min |
| Value-added ratio (as a percent) | _____ % | _____ % |
Non Value added lead time:
There are three main times in the production processing of goods or services. The non value added lead time is the sum total of move time, inspection time and wait time. The other lead time in production process is value added lead time.
Answer and Explanation: 1
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