Question

Blues Inc. manufactures jeans in the cutting and sewing process. Jeans are manufactured in 40-jean batch sizes. The cutting time is 5 minutes per jean. The sewing time is 20 minutes per jean. It takes 2 minutes to move a batch of jeans from cutting to sewing.

a. Compute the value-added, non-value-added, and total lead time of this process. Value-added lead time minutes Non-value-added lead time minutes Total lead time minutes
b. Compute the value-added ratio. Round to one decimal place. %

Answer 1

1. Value added time = Cutting + Sewing time

Value added time = 5 min + 20 min

Value added time = 25 minutes

Non-value added time = Total within batch wait time + Move time

Non-value added time = (25 minutes*(40-1)) + 2 minutes

Non-value added time = 977 minutes

Total lead time = Value added time + Non-value added time

Total lead time = 25 minutes + 977 minutes

Total lead time = 1,002 minutes

2. Value added ratio = Value added time / Total lead time

Value added ratio = 25 minutes / 1,002 minutes

Value added ratio = 0.02495

Value added ratio = 2.5%