Question

Blues Inc. manufactures jeans in the cutting and sewing process. Jeans are manufactured in 40-jean batch sizes. The cutting time is 5 minutes per jean. The sewing time is 20 minutes per jean. It takes 2 minutes to move a batch of jeans from cutting to sewing. a. Compute the value-added, non-value-added, and total lead time of this process. Value-added lead time fill in the blank 1 minutes Non-value-added lead time fill in the blank 2 minutes Total lead time fill in the blank 3 minutes b. Compute the value-added ratio. Round to one decimal place.

Answer 1

Answer:

a. Value added time = Cutting time + Sewing time

Value added time = 5 minutes + 20 minutes

Value added time = 25 minutes

Non-value added time = Total within batch wait time + Move time

Non-value added time = [25 minutes * (40 - 1) + 2 minutes

Non-value added time = 977 minutes

Total lead time = Value added time + Non-value added time

Total lead time = 25 minutes + 977 minutes

Total lead time = 1,002 minutes

b. Value added ratio = Value added time / Total lead time

Value added ratio = 25 minutes / 1,002 minutes

Value added ratio = 0.02495

Value added ratio = 2.5%