Question

Lead Time

Sound Tek Inc. manufactures electronic stereo equipment. The manufacturing process includes printed circuit (PC) board assembly, final assembly, testing, and shipping. In the PC board assembly operation, a number of individuals are responsible for assembling electronic components into printed circuit boards. Each operator is responsible for soldering components according to a given set of instructions. Operators work on batches of 50 printed circuit boards. Each board requires 4 minutes of board assembly time. After each batch is completed, the operator moves the assembled boards to the final assembly area. This move takes 9 minutes to complete.

The final assembly for each stereo unit requires 19 minutes and is also done in batches of 50 units. A batch of 50 stereos is moved into the test building, which is across the street. The move takes 20 minutes. Before conducting the test, the test equipment must be set up for the particular stereo model. The test setup requires 30 minutes. The units wait while the setup is performed. In the final test, the 50-unit batch is tested one at a time. Each test requires 10 minutes. The completed batch, after all testing, is sent to shipping for packaging and final shipment to customers. A complete batch of 50 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 labeling requires 7 minutes per unit.

1. Determine the amount of value-added and non-value-added lead time and the value-added ratio in this process for an average stereo unit in a batch of 50 units. Categorize the non-value-added time into wait and move time. Round the percentage to one decimal place.

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)			____%

Answer 1

Sowlion : Manufacturing process incru des printed circuit (Pe) based asembly, final assembly, testing, and shipping. a) the amount of vawe - added & non-valle-added lead time and the vaive added ratio in the process for an . average Steven unit in a batch of 50 units. Round the percentage to one decimal place. ) Voive - added lead time: is the time the valve added teod time Spent on the raw Materials or work in progo much more valuable goods and Services to the customers' ii) NON-Value-added lead time : - The non-Vaive added lead time is the time that adds nothing to the finished product including like printed Circuit (Pc). Yaw Materiais.

Lead time : operators. work on batches of 50 printed Circuit boards. Ceach board requires u min of board assembly time . Assembly time : 450 - 200 mins The operator moves the assembly boards to the final assembly area, This moves take a min to Comprete The final assembly for each stereo Onit requires 19 min E is also done in batches of 50 units e final assembly = 19* 50 = 9.50 min In final test, the 50 unit batch, is tested one at a time Each test reauires lomin Time lest =10*50 500 mins A comple batch of 50 units is sent from testing to shipping Packaging & labelling requires 7 min per unit packaging & labelling = 7*50 V = 350 mins

Total vait - 200 + 950 4 500 + 350 = 2000 mins iv) Non-valve added lead time 9 mins . The final assembly area move takes The test building, move takes 20 mins The test setup requires 30 mins Total NVALT =9+20+ 30 - 59 mins waiting time - 30 mins oving time : 20+9 . 29 mins Total Lead time . Total VALT + Total NVALT = 2000 + 59 - 2059 mins Valve added Yatio ... Total VALT EX 100 Total Lead lime 2000 Vibo 2059 = 0.971 X 100 97.17.

Vawe added lead time Non-valve -added tead time. waiting lead time 30 mins moving lead time 20+9 29 mins! Total non-valve-added lead time Tolal lead time. Value-added. Yatio 54 min) 2059 miny 2000+59 97.14.