Calculate the traditional manufacturing approach


Flint Fabricators Inc. machines metal parts for the automotive industry. Under the traditional manufacturing approach, the parts are machined through two processes: milling and finishing. Parts are produced in batch sizes of 45 parts. A part requires 6 minutes in milling and 8 minutes in finishing. The move time between the two operations for a complete batch is 5 minutes.

Under the just-in-time philosophy, the part is produced in a cell that includes both the milling and finishing operations. The operating time is unchanged; however, the batch size is reduced to 4 parts and the move time is eliminated.

Determine the value-added, non-value-added, and total lead times, and the value-added ratio under the traditional and just-in-time manufacturing methods. If required, round percentages to one decimal place.


Traditional Philosophy Just-in-Time Philosophy
Value-added time
min
min
Non-value-added time
min
min
Total lead time
min
min
Value-added ratio (as a percent)
%
%

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Accounting Basics: Calculate the traditional manufacturing approach
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