Audio Max Electronics Company manufactures electronic stereo equipment. The manu
ID: 2560404 • Letter: A
Question
Audio Max Electronics Company 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 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 18 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 6 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 7 minutes per unit.
1. 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.
2. Move time in this process could best be reduced by:
Doing nothing.
Changing the layout from a process orientation to a product orientation.
Increasing batch sizes.
Eliminating the testing step.
Hiring more workers.
Value-added minutes min 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) %Explanation / Answer
1.Value added in minutes :
Pc board assembly time =. 200 min
Final assembly time. =. 900 min
Test time = 300 min
Packing and labelling time. = 350 min
Total value added time. = 1750 min
Non valve added time.
Waiting time
Testing waiting time. = 500. (50*10min)
Move time
Pc board move time = 600 min
Final assemble move time = 1000 min
Total non value added time. = 1600 min
Total lead time = 3350 min
Value added ratio =52.23%
2. Eliminating testing step when all above process are good quality maintained when it process by saving the 10 min
Note ; when product start from final assemble, start set up of testing there by saving 20 min
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