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Can someone please help me on this. Audio Max Electronics Company manufactures e

ID: 2485051 • Letter: C

Question

Can someone please help me on this.

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 9 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 11 minutes per unit. 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. Value-added minutes Non-value-added minutes: Wait time Move time Total non-value-added time Total lead time Value-added ratio (as a percent) 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.

Explanation / Answer

Answer:1

Calculation of value added minutes:

Assembly time = 4 minutes

Final assembly = 18 minutes

Time to test one unit = 6 minutes

Pack and shipment labelling = 11 minutes

Total value added time = 39 minutes

Calculation of non- value added minutes:

Wait time:

Within the batch wait time - assembly time (50 units *4 minutes) = 200 minutes

Within the batch wait time - final assembly (50 units *18 minutes) = 900 minutes

Within the batch wait time - time to test one unit (50 units*6 minutes) = 300 minutes

Within the batch wait time - Pack and shipment labelling (50 units *11 minutes) = 550 minutes

Total wait time = 1950 minutes

Move time:

Move from assembly to final assembly = 9 minutes

Move from final assembly to testing = 20 minutes

Total move time = 29 minutes

Total non- value added minutes= total wait time + total move time

= 1950 minutes + 29 minutes = 1979 minutes

Calculation of total lead time:

Total lead time = total value added time + total non- value added time

= 39 minutes + 1979 minutes = 2018 minutes

Calculation of value added ratio:

Value added ratio = value added time/ total lead time

= 39/2018 = 1.9 %

Answer:2

Move time in this process can be best reduced by changing the layout from process orientation to product orientation.Each appliance model could be formed into a production cell and thereby reducing the move time.