The High Altitude Ski Company manufactures skis in the finishing and assembly pr

Question

The High Altitude Ski Company manufactures skis in the finishing and assembly process. Skis are manufactured in 40-ski batch sizes. The finishing time is 5 minutes per ski. The assembly time is 9 minutes per ski. It takes 13 minutes to move a batch of skis from finishing to assembly.

a. Compute the value-added, non-value-added, and total lead time of this process.

Value-added lead time: __ minutes

Non-value-added lead time: __minutes

Total lead time: __minutes

b. Compute the value-added ratio. Round to one decimal place.

___%

Explanation / Answer

Answer :

Value added lead time = 14 min = (5 +9 ) minutes

Non Value added lead time :

Total within batch wait time = 546    =      (5+9)min * ( 40- 1)

Move Time = 13

Total Lead time = 559

Value- added ratio = 14/ 559 = 2.5%

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