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: Line Item Description Time Process Step 1 6 minutes Process Step 2 12 minutes Process Step 3 9 minutes Process Step 4 3 minutes 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. If required, round percentages to one decimal place. Line Item Description Present Approach Proposed Approach 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 %

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter27: 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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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:

Line Item Description	Time
Process Step 1	6 minutes
Process Step 2	12 minutes
Process Step 3	9 minutes
Process Step 4	3 minutes

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. If required, round percentages to one decimal place.

Line Item Description	Present Approach	Proposed Approach
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 %