Question

One batch of 25 units requires the following processing times per unit: move time for raw materials to Cutting Department, 6 minutes; Cutting Department, 4 minutes; move time to Sewing Department, 3 minutes; Sewing Department, 10 minutes; move time to Packaging Department, 2 minutes; and Packaging Department, 4 minutes. a. How much of the time spent to produce the units is value-added time? b. Determine the total within-batch wait time. c. Calculate the total lead time for the batch.

Answer 1

(a) 450 minutes

(b) 275 minutes

(c) 725 minutes

Explanation:

Given,

Number of units in one batch = 25

move time for raw materials to Cutting Department per unit =6 minutes

Time taken by Cutting Department per unit = 4 minutes

move time to Sewing Department per unit = 3 minutes

Time taken by sewing Department per unit = 10 minutes

move time to Packaging Department per unit = 2 minutes

time taken by packaging Department per unit = 4 minutes

(a) value added time for one unit = Time taken by Cutting Department per unit

+Time taken by sewing Department per unit

+time taken by packaging Department per unit

= (4 + 10 + 4) minutes

= 18 minutes

Value added time for 25 units = 18 x 25

= 450 minutes

(b) within batch wait time per unit =move time for raw materials to Cutting department per unit +move time to Sewing Department per unit +move time to Packaging Department per unit

= (6+3+2) minutes

= 11 minutes

Total within batch wait time = 11 x 25

= 275 minutes

(c) total lead time for batch = Value added time for 25 units

+Total within batch wait time

= 450+ 275

= 725 minutes