Answer and Explanation:
The calculation is given below:-
Particulars Traditional Philosophy Manufacturing
Lean Philosophy
Value added 3 + 7 = 10 10
Non value added 10 × (50 - 1) = 490 10 × (5 - 1) = 40
Total lead time 500 50
Value-added ratio
(as a percent) 10 ÷ 500 × 100 = 2% 10 ÷ 50 × 100 = 20%