Determine the total lead time


Response to the following problem:

Calculate lead time Michigan Machining Company 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 60 parts. A part requires 5 minutes in milling and 7 minutes in finishing. The move time between the two operations for a complete batch is 10 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 5 parts and the move time is eliminated.

Determine the value-added, non-value-added, total lead time, 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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Cost Accounting: Determine the total lead time
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