Answered: Compute Lead Time Jackson Fabricators…

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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Compute Lead Time

Jackson Fabricators Inc. machines metal parts for the automotive industry. Under the traditional manufacturing approach, the parts are machined through two processes: milling and finishing. Parts are produced in batch sizes of 40 parts. A part requires 6 minutes in milling and 8 minutes in finishing. The move time between the two operations for a complete batch is 5 minutes.

Under the lean philosophy, the part is produced in a cell that includes both the milling and finishing operations. The operating time is unchanged; however, the batch size is reduced to 5 parts and the move time is eliminated.

Determine the value-added, non-value-added, and total lead times, and the value-added ratio under the traditional and lean manufacturing methods. If required, round percentages to one decimal place.

	Traditional Philosophy	Lean Manufacturing Philosophy
Value-added time	fill in the blank 1	min	fill in the blank 2	min
Non-value-added time	fill in the blank 3	min	fill in the blank 4	min
Total lead time	fill in the blank 5	min	fill in the blank 6	min
Value-added ratio (as a percent)	fill in the blank 7	%	fill in the blank 8	%

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