Question

Sarasota company manufactures pillows in the cutting and assembly process. pillows are manufactured in 40-pillow batch sizes. the cutting time is 4 minutes per pillow. the assembly time is 8 minutes per pillow. it takes 10 minutes to move a batch of pillows from cutting to assembly. what is the value-added lead time?

a. 10 minutes
b. 22 minutes
c. 12 minutes
d. 8 minutes

Answer 1

Answer: c. 12 minutes

Value added time is the amount of time it takes to actually produce and improve a product. In the case of Sarasota company who manufactures pillows, value added time is the production time which is 4 minutes in cutting and 8 minutes in the assembly, total of 12 minutes.