Reference no: EM132690786

Problem - Lead time - Classic 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 60 stampings is completed after each setup. A setup requires 40 minutes. The parts wait for the setup to be completed before stamping begins. Each stamping requires 6 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 20 minutes and is also done in batches of 60 appliance units. The batch of 60 appliance units is moved into the test building, which is across the street. The move takes 25 minutes. In the final test, the 60-unit batch is tested one at a time. Each test requires 6 minutes. The completed units are sent to shipping for packaging and final shipment to customers. A complete batch of 60 units is sent from final assembly to shipping. The Shipping Department is located next to final assembly. Thus, there is no move time between these two operations. Packaging and shipment labeling requires 12 minutes per unit.

Instructions -

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 60 units. Round percentages to one decimal place. Categorize the non-value-added time into wait and move time.

2. How could this process be improved so as to reduce the amount of waste in the process?