Williams Optical Inc. is considering a new lean product cell. The present manufacturing approach produces...
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Williams Optical Inc. is considering a new lean product cell. The present manufacturing approach produces a product in four separate steps. The production batch sizes are 57 units. The process time for each step is as follows:
Process Step 1
9
minutes
Process Step 2
8
minutes
Process Step 3
5
minutes
Process Step 4
4
minutes
The time required to move each batch between steps is 15 minutes. In addition, the time to move raw materials to Process Step 1 is also 15 minutes, and the time to move completed units from Process Step 4 to finished goods inventory is 15 minutes.
The new lean layout will allow the company to reduce the batch sizes from 57 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.
Determine the value-added, non-value-added, and 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)
%
%
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