Lead time Audio Max Electronics Company manufactures electronic stereo equipment

Question

Lead time Audio Max Electronics Company manufactures electronic stereo equipment. The manufacturing process includes printed circuit (PC) card assembly, final assembly, testing, and shipping. In the PC card 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 assembly time. After each batch is completed, the operator moves the assembled cards to the final assembly area. This move takes 9 minutes to complete. The final assembly for each stereo unit requires 21 minutes and is also done in batches of 50 units. The 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 8 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 final assembly to shipping. The Shipping Department is located next to final assembly. Thus, there is no move time between these two operations. Packaging and labeling requires 7 minutes per unit. 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 minutes ______ Non-value-added minutes: Wait time min ______ Move time min _______ Total non-value-added time min _____ Total lead time min ______ Value-added ratio (as a percent) ______ I need help! The only thing I can figure out is Move time= 29 Minutes

Explanation / Answer

value added time : 4+20+11+7 = 42 minutes/unit non value added time wait time : 0.6 minutes move time : 0.6 minutes total non value added time : 1.2 minutes/ unit total lead time : 42+1.2 = 43.2 minutes/unit value added ratio(in %) : (42/43.2) x 100 = 97.22

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