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 processtime for each step is as follows:Process Step 1Process Step 2Process Step 3Process Step 46 minutes12 minutes9 minutes3 minutesThe 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 fromProcess 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 1minute. 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 toone decimal place.Present Approach Proposed ApproachValue-added time30 min30minNon-value-added time30 X min5 X minTotal lead time60 X min35 X minValue-added ratio (as a percent)50.0 X %85.7 X %

For Present ApproachFor Proposed ApproachProcess time (value adding) = 30 minutesProcess time (value…

Answered: Isaacson Dental Inc. is considering a…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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