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

For the present approach the value added time is 20 minutes, the non value added time is = 905 minutes, The total lead time = 925 minutes, the value added ratio is = 2.2%

For the proposed approach the value added time = 20 minutes, the non vale added time = 50 minutes, the total lead time = 70 minutes, the value added ratio is = 28.6 %

Explanation:

Solution

The Present approach is:

Value added time (Process times, step 1 + Process times, Step 2 +Process times, Step 3, + Process times, Step 4)

= 5+8+4+3 = 20 minutes.

The non value added time = Total within batch wait time + move time

= [Total time required for the four steps * ( batch size -1)] + move time

= [(5+8+4+3)* (45-1)]+ 25

= 905 minutes

Now,

The total time lead = value added time + value non added time

= 20 +905 =925 minutes

so,

Value added ratio = value added time/total time

= 20 minutes/925 minutes = 2.2%

Proposed approach

Value added time (Process times, step 1 + Process times, Step 2 +Process times, Step 3, + Process times, Step 4)

= 5+8+4+3 = 20 minutes.

The non value added time = Total within batch wait time + move time

= [Total time required for the four steps * ( batch size -1)] + move time

= [(5+8+4+3)* (3-1)]+ 10

= 50 minutes

Thus,

The total time lead = value added time + value non added time

= 20 +50=70 minutes

The value added ratio = value added time/total time

= 20 minutes/70 minutes = 28.6%

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