Master Chef Appliance Company manufactures home kitchen appliances. The manufacturing process includes stamping, final assembly, testing, and shipping. In the stamping operation, a number of individuals are responsible for stamping the steel outer surface of the appliance. The stamping operation is set up prior to each run. A run of 40 stampings is completed after each setup. A setup requires 60 minutes. The parts wait for the setup to be completed before stamping begins. Each stamping requires 5 minutes of operating time. After each batch is completed, the operator moves the stamped covers to the final assembly area. This move takes 10 minutes to complete. The final assembly for each appliance unit requires 22 minutes and is also done in batches of 40 appliance units. The batch of 40 appliance units is moved into the test building, which is across the street. The move takes 25 minutes. In the final test, the 40- unit batch is tested one at a time. Each test requires 8 minutes. The completed units are sent to shipping for packaging and final shipment to customers. A complete batch of 40 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 shipment labeling requires 15 minutes per unit. Required: 1. Determine the amount of value-added and non-value-added lead time and the value-added ratio in this process for an average kitchen appliance in a batch of 40 units. Round percentages to one decimal place. Categorize the non-value-added time into wait and move time. Value-added lead time 50 min. Non-value-added lead time: Wait time lead time 2,010 min. Move time lead time 35 min. Total non-value-added lead time 2,045 min. Total lead time 2,095 min. Value-added ratio (as a percent) 2.4 % 2. The company could improve the process by changing the layout from: a machine process to a manual process. a process orientation to a product orientation. a product orientation to a process orientation. a value-added process to a non-value-added process. None of these answers are correct.

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter13: Lean Manufacturing And Activity Analysis
Section: Chapter Questions
Problem 2PB: Lead time Master Chef Appliance Company manufactures home kitchen appliances. The manufacturing...
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Lead Time
Master Chef Appliance Company manufactures home kitchen appliances. The manufacturing process includes stamping, final
assembly, testing, and shipping. In the stamping operation, a number of individuals are responsible for stamping the steel outer
surface of the appliance. The stamping operation is set up prior to each run. A run of 40 stampings is completed after each setup.
A setup requires 60 minutes. The parts wait for the setup to be completed before stamping begins. Each stamping requires 5
minutes of operating time. After each batch is completed, the operator moves the stamped covers to the final assembly area. This
move takes 10 minutes to complete.
The final assembly for each appliance unit requires 22 minutes and is also done in batches of 40 appliance units. The batch of 40
appliance units is moved into the test building, which is across the street. The move takes 25 minutes. In the final test, the 40-
unit batch is tested one at a time. Each test requires 8 minutes. The completed units are sent to shipping for packaging and final
shipment to customers. A complete batch of 40 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 shipment labeling requires 15 minutes per
unit.
Required:
1. Determine the amount of value-added and non-value-added lead time and the value-added ratio in this process for an average
kitchen appliance in a batch of 40 units. Round percentages to one decimal place. Categorize the non-value-added time into wait
and move time.
Value-added lead time
50 min.
Non-value-added lead time:
Wait time lead time
2,010 min.
Move time lead time
35 min.
Total non-value-added lead time
2,045 min.
Total lead time
2,095 min.
Value-added ratio (as a percent)
2.4 %
2. The company could improve the process by changing the layout from:
a machine process to a manual process.
a process orientation to a product orientation.
a product orientation to a process orientation.
a value-added process to a non-value-added process.
None of these answers are correct.
Transcribed Image Text:Lead Time Master Chef Appliance Company manufactures home kitchen appliances. The manufacturing process includes stamping, final assembly, testing, and shipping. In the stamping operation, a number of individuals are responsible for stamping the steel outer surface of the appliance. The stamping operation is set up prior to each run. A run of 40 stampings is completed after each setup. A setup requires 60 minutes. The parts wait for the setup to be completed before stamping begins. Each stamping requires 5 minutes of operating time. After each batch is completed, the operator moves the stamped covers to the final assembly area. This move takes 10 minutes to complete. The final assembly for each appliance unit requires 22 minutes and is also done in batches of 40 appliance units. The batch of 40 appliance units is moved into the test building, which is across the street. The move takes 25 minutes. In the final test, the 40- unit batch is tested one at a time. Each test requires 8 minutes. The completed units are sent to shipping for packaging and final shipment to customers. A complete batch of 40 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 shipment labeling requires 15 minutes per unit. Required: 1. Determine the amount of value-added and non-value-added lead time and the value-added ratio in this process for an average kitchen appliance in a batch of 40 units. Round percentages to one decimal place. Categorize the non-value-added time into wait and move time. Value-added lead time 50 min. Non-value-added lead time: Wait time lead time 2,010 min. Move time lead time 35 min. Total non-value-added lead time 2,045 min. Total lead time 2,095 min. Value-added ratio (as a percent) 2.4 % 2. The company could improve the process by changing the layout from: a machine process to a manual process. a process orientation to a product orientation. a product orientation to a process orientation. a value-added process to a non-value-added process. None of these answers are correct.
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