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In: Accounting

Christmas Express makes wreaths in batch sizes of 15. The cutting & assembly process takes 2...

Christmas Express makes wreaths in batch sizes of 15. The cutting & assembly process takes 2 minutes per wreath and the decorating process time is 15 minutes per wreath. It takes 5 minutes to move the wreaths from the cutting & assembly process to the decorating process.

Compute the value-added, non-value-added, and the total lead time of the wreath process.

Value-added lead time:

Non-value-added lead time:

Move time

Within batch wait time

Total lead time

Compute the value-added ratio. Round to one decimal place.
%

Solutions

Expert Solution

Value-added lead time                    [2 + 15] 17
Non-value-added lead time
       Move time                                 5
       Within batch wait time            [17 x (15 wreaths - 1 wreath)] 238
Total lead time 260

.

.

Calculation of value-added ratio
Value added lead time   (a) 17
Total lead time               (b) 260
value-added ratio         [(a ÷ b) x 100] 6.5%

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