Compute Lead TimeWilliams Optical Inc. is considering a new lean product cell.The present manufacturing approach produces a product infour separate steps. The production batch sizes are 45units. The process time for each step is as follows:Process Step 1Process Step 2Process Step 3Process Step 45 minutes8 minutes4 minutesThe time required to move each batch between steps is 5minutes. In addition, the time to move raw materials toProcess Step 1 is also 5 minutes, and the time to movecompleted units from Process Step 4 to finished goodsinventory is 5 minutes.Value-added time3 minutesThe new lean layout will allow the company to reduce thebatch sizes from 45 units to 3 units. The time required tomove each batch between steps and the inventory locationswill be reduced to 2 minutes. The processing time in eachstep will stay the same.Non-value-added timeDetermine the value-added, non-value-added, and totallead times, and the value-added ratio under the presentand proposed production approaches. If required, roundpercentages to one decimal place.Present Approach Proposed ApproachTotal lead timeValue-added ratio (as a percent)minminmin%minminmin%

Formulas used here:- a) In the exercise for Present:- Value-added processing time = Add together…

Compute Lead Time 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 45 units. The process time for each step is as follows: Process Step 1 Process Step 2 Process Step 3 Process Step 4 5 minutes 8 minutes 4 minutes 3 minutes The time required to move each batch between steps is 5 minutes. In addition, the time to move raw materials to Process Step 1 is also 5 minutes, and the time to move completed units from Process Step 4 to finished goods inventory is 5 minutes. The new lean layout will allow the company to reduce the batch sizes from 45 units to 3 units. The time required to move each batch between steps and the inventory locations will be reduced to 2 minutes. The processing time in each step will stay the same.

Compute Lead Time 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 45 units. The process time for each step is as follows: Process Step 1 Process Step 2 Process Step 3 Process Step 4 5 minutes 8 minutes 4 minutes 3 minutes The time required to move each batch between steps is 5 minutes. In addition, the time to move raw materials to Process Step 1 is also 5 minutes, and the time to move completed units from Process Step 4 to finished goods inventory is 5 minutes. The new lean layout will allow the company to reduce the batch sizes from 45 units to 3 units. The time required to move each batch between steps and the inventory locations will be reduced to 2 minutes. The processing time in each step will stay the same.

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter13: Lean Manufacturing And Activity Analysis

Section: Chapter Questions

Problem 7E: Calculate lead time Williams Optical Inc. is considering a new lean product cell. The present...

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Williams Optical Inc. is considering a new lean product cell. The present manufacturing approachproduces a product in four separate steps. The production batch sizes are 45 units. The processtime for each step is as follows: Process Step 1 5 minutesProcess Step 2 8 minutesProcess Step 3 4 minutesProcess Step 4 3 minutes The time required to move each batch between steps is 5 minutes. In addition, the time tomove raw materials to Process Step 1 is also 5 minutes, and the time to move completed unitsfrom Process Step 4 to finished goods inventory is 5 minutes.The new lean layout will allow the company to reduce the batch sizes from 45 units to 3 units.The time required to move each batch between steps and the inventory locations will be reducedto 2 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 (a) present and (b) proposed production approaches. Round percentages to one…
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Compute Lead Time 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 process time for each step is as follows: 6 minutes 12 minutes 9 minutes 3 minutes Process Step 1 Process Step 2 Process Step 3 Process Step 4 The 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 from Process 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 1 minute. 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.…
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