Lead Time: Lead time is the time consumed for the creation of a product. It refers to the time period between the time the order is placed and the product is completed. Lesser lead time creates a more competitive edge for the company. Lead Time = Wait time + Process time + Queue time + Move time + Inspection Time To Compute: The value added, non value added and lead time of this process.

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Chapter 27, Problem 27.1APE

a)

To determine

Lead Time: Lead time is the time consumed for the creation of a product. It refers to the time period between the time the order is placed and the product is completed. Lesser lead time creates a more competitive edge for the company.

Lead Time = Wait time + Process time + Queue time + Move time + Inspection Time

To Compute: The value added, non value added and lead time of this process.

b)

To determine

To Compute: The value added ratio (rounded to one place).

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