Extreme Wreaths, Inc., makes wreaths in batch sizes of 15 at a time. The cutting and assembly process takes 10 minutes per wreath, and the decorating process time is 7 minutes per wreath. It takes 5 minutes to move the wreaths from the cutting and assembly process to the decorating process.
In an effort to improve the lead time, the company has tried reducing the batch size to 10 units. The new process is as follows: cutting and assembly process-8 minutes. The decorating process is still 7 minutes per wreath. It takes 5 minutes to move the wreaths from the cutting and assembly process to the decorating process.
a. Compute the value-added, non-value-added, and the total lead times of the wreath process for both the old and new manufacturing processes.
b. Compute the value-added ratio for both the old and new processes. Round to one decimal place.

Question

Extreme Wreaths, Inc., makes wreaths in batch sizes of 15 at a time. The cutting and assembly process takes 10 minutes per wreath, and the decorating process time is 7 minutes per wreath. It takes 5 minutes to move the wreaths from the cutting and assembly process to the decorating process.​
In an effort to improve the lead time, the company has tried reducing the batch size to 10 units. The new process is as follows: cutting and assembly process-8 minutes. The decorating process is still 7 minutes per wreath. It takes 5 minutes to move the wreaths from the cutting and assembly process to the decorating process.​
a. Compute the value-added, non-value-added, and the total lead times of the wreath process for both the old and new manufacturing processes.
b. Compute the value-added ratio for both the old and new processes. Round to one decimal place.

Quizplus · Accepted Answer

The Answer of Extreme Wreaths, Inc., makes wreaths in batch sizes of 15 at a time. The cutting and assembly process takes 10 minutes per wreath, and the decorating process time is 7 minutes per wreath. It takes 5 minutes to move the wreaths from the cutting and assembly process to the decorating process.​
In an effort to improve the lead time, the company has tried reducing the batch size to 10 units. The new process is as follows: cutting and assembly process-8 minutes. The decorating process is still 7 minutes per wreath. It takes 5 minutes to move the wreaths from the cutting and assembly process to the decorating process.​
a. Compute the value-added, non-value-added, and the total lead times of the wreath process for both the old and new manufacturing processes.
b. Compute the value-added ratio for both the old and new processes. Round to one decimal place.