Question

Calculate Lead Time

Michigan Machining Company machines metal parts for the automotive industry. Under the traditional manufacturing approach, the parts are machined through two processes: milling and finishing. Parts are produced in batch sizes of 50 parts. A part requires 4 minutes in milling and 10 minutes in finishing. The move time between the two operations for a complete batch is 11 minutes.

Under the lean manufacturing philosophy, the part is produced in a cell that includes both the milling and finishing operations. The operating time is unchanged; however, the batch size is reduced to 6 parts and the move time is eliminated.

Determine the value-added, non-value-added, and total lead times, and the value-added ratio under the traditional and lean manufacturing methods. If required, round percentages to one decimal place.

	Traditional Philosophy		Lean Manufacturing Philosophy
Value-added time		min		min
Non-value-added time		min		min
Total lead time		min		min
Value-added ratio (as a percent)		%		%

Answer 1

Answer
1) Calculation of Values under both traditional and Lean manufacturing philosophy :
Particulars	Traditional	Lean manufacturing
Value added time (50*4 + 50*10)	700 Minutes	700 Minutes
Non value added time	11 Minutes	0 minutes
Total lead time	711 Minutes	700 minutes
Value added ratio	98.5%	100%
	700/711*100