Lead Time Master Chef Appliance Company manufactures home kitchen appliances. The manufacturing process includes stamping, final…

Lead Time Master Chef Appliance Company manufactures home
kitchen appliances. The manufacturing process includes stamping,
final assembly, testing, and shipping. In the stamping operation, a
number of individuals are responsible for stamping the steel outer
surface of the appliance. The stamping operation is set up prior to
each run. A run of 40 stampings is completed after each setup. A
setup requires 60 minutes. The parts wait for the setup to be
completed before stamping begins. Each stamping requires 5 minutes
of operating time. After each batch is completed, the operator
moves the stamped covers to the final assembly area. This move
takes 10 minutes to complete. The final assembly for each appliance
unit requires 22 minutes and is also done in batches of 40
appliance units. The batch of 40 appliance units is moved into the
test building, which is across the street. The move takes 25
minutes. In the final test, the 40-unit batch is tested one at a
time. Each test requires 8 minutes. The completed units are sent to
shipping for packaging and final shipment to customers. A complete
batch of 40 units is sent from testing to shipping. The Shipping
Department is located next to testing. Thus, there is no move time
between these two operations. Packaging and shipment labeling
requires 15 minutes per unit.
Required: 1. Determine the amount of value-added and
non-value-added lead time and the value-added ratio in this process
for an average kitchen appliance in a batch of 40 units. Round
percentages to one decimal place.
Categorize the non-value-added time into wait and move time.
Value-added lead time min.
Non-value-added lead time:
Wait time lead time min.
Move time lead time min.
Total non-value-added lead time min.
Total lead time min.
Value-added ratio (as a percent) %
2. The company could improve the process by changing the layout
from: