Determine the value-added, non-value-added, and total lead times, and the value-added ratio under the (a) present and (b) proposed production approaches. If required, round percentages to one decimal place. Present Approach Proposed Approach Value-added time Non-value-added time Total lead time Value-added ratio (as a percent) min min min % min min min %
Determine the value-added, non-value-added, and total lead times, and the value-added ratio under the (a) present and (b) proposed production approaches. If required, round percentages to one decimal place. Present Approach Proposed Approach Value-added time Non-value-added time Total lead time Value-added ratio (as a percent) min min min % min min min %
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Compute Lead Time
Isaacson Dental Inc. is considering a new lean product cell. The present manufacturing approach produces a product in four separate steps. The production batch sizes
are 50 units. The process time for each step is as follows:
6 minutes
12 minutes
9 minutes
3 minutes
Process Step 1
Process Step 2
Process Step 3
Process Step 4
The time required to move each batch between steps is 6 minutes. In addition, the time to move raw materials to Process Step 1 is also 6 minutes, and the time to move
completed units from Process Step 4 to finished goods inventory is 6 minutes.
The new lean layout will allow the company to reduce the batch sizes from 50 units to 2 units. The time required to move each batch between steps and the inventory
locations will be reduced to 1 minute. The processing time in each step will stay the same.
Determine the value-added, non-value-added, and total lead times, and the value-added ratio under the (a) present and (b) proposed production approaches. If
required, round percentages to one decimal place.
Present Approach Proposed Approach
Value-added time
Non-value-added time
Total lead time
Value-added ratio (as a percent)
min
min
min
%
min
min
min
%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8f2422b9-8653-4de8-b0b8-b7eeff939000%2Fb23a2bc4-ba3b-4c32-b5c9-0fc9ac7ab813%2Fyg58usg_processed.png&w=3840&q=75)
Transcribed Image Text:Compute Lead Time
Isaacson Dental Inc. is considering a new lean product cell. The present manufacturing approach produces a product in four separate steps. The production batch sizes
are 50 units. The process time for each step is as follows:
6 minutes
12 minutes
9 minutes
3 minutes
Process Step 1
Process Step 2
Process Step 3
Process Step 4
The time required to move each batch between steps is 6 minutes. In addition, the time to move raw materials to Process Step 1 is also 6 minutes, and the time to move
completed units from Process Step 4 to finished goods inventory is 6 minutes.
The new lean layout will allow the company to reduce the batch sizes from 50 units to 2 units. The time required to move each batch between steps and the inventory
locations will be reduced to 1 minute. The processing time in each step will stay the same.
Determine the value-added, non-value-added, and total lead times, and the value-added ratio under the (a) present and (b) proposed production approaches. If
required, round percentages to one decimal place.
Present Approach Proposed Approach
Value-added time
Non-value-added time
Total lead time
Value-added ratio (as a percent)
min
min
min
%
min
min
min
%
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