Question

# Williams Optical Inc. is considering a new lean product cell. The present manufacturing approach produces a...

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 57 units. The process time for each step is as follows:

 Process Step 1 9 minutes Process Step 2 8 minutes Process Step 3 5 minutes Process Step 4 4 minutes

The time required to move each batch between steps is 15 minutes. In addition, the time to move raw materials to Process Step 1 is also 15 minutes, and the time to move completed units from Process Step 4 to finished goods inventory is 15 minutes.

The new lean layout will allow the company to reduce the batch sizes from 57 units to 3 units. The time required to move each batch between steps and the inventory locations will be reduced to 3 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 present and proposed production approaches. If required, round percentages to one decimal place.

 Present Approach Proposed Approach Value-added time min min Non-value-added time min min Total lead time min min Value-added ratio (as a percent) % %

Solution :-

Present Approach Proposed Approach

= 9 + 8 + 5 + 4

= 26 minutes

= 9 + 8 + 5 + 4

= 26 minutes

= [ 26 * ( 57 - 1 ) ] + [ 15 * 15 ]

= [ 26 * 56 ] + 225

= 1,456 + 225

= 1,681 minutes

= [ 26 * (3 - 1 ) ] + [ 15 +15 ]

= [ 26 * 2 ] + 30

= 52 + 30

= 82 minutes

= 1,681 + 26

= 1,707 minutes

= 26 + 82

= 108 minutes

= 26 / 1,707

= 0.01523

= 1.5%

= 26 / 108

= 0.240

= 24.1%

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