Question

Lead Time

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 12 minutes to complete. The final assembly for each stereo unit requires 20 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 11 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 12 minutes per unit.

Answer 1

47 1 Ans: Determine the amount of value-added and non- value-added lead time and the value-added ratio Particulars Minuts Minuts Value-added lead time Non-Value-added lead time Wait time lead time 12.333 Move time lead time (12+20) Total non-value added lead time 2,365 Total lead time 2,412 Value-added ration (as a percent) 32 Minuts 12 Working note: Calculate value-added lead time Particulars Pc board assembly Final assembly Testing Packaging and labeling Total value added time 20 11 Calculate wait time lead time Particulars Wait time for non added value Add: Test set-up-time Wait time Minuts 2.303 30 2,333

B C D 1 Ans Determine the amount of value-added and non-value-added lead time and the value-added ratio 2 Particulars Minuts Minuts |Value-added lead time Non-Value-added lead time Wait time lead time Move time lead time (12+20) Total non-value added lead time Total lead time Value-added ration (as a percent) -C19 4 5 -C25 32 6 7 |=SUM(C6:C7) -SUM(D4D8) (D4/D9 )* 100 10 11 12 Worl Calculate value-added lead time 13 Particulars Minuts 14 Pc board assembly Final assembly Testing Packaging and labeling Total value added time 4 15 20 16 11 12 - SUM(C15:C18) 17 18 19 20 Calculate wait time lead time 21 Particulars Minuts 22 Wait time for non added value 47 * ( 50-1) 30 |-SUM(C23:C24) 23 24 Add: Test set-up-time Wait time 25 CO