Extreme Wreaths,Inc

question 117

Essay

Extreme Wreaths,Inc.makes wreaths in batch sizes of 15 at a time.The cutting & assembly process takes 10 minutes per wreath,and the decorating process time is 7 minutes per wreath.It takes 5 minutes to move the wreaths from the cutting & assembly process to the decorating process.
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In a effort to improve the lead time,the company has tried reducing the batch size to 10 units.The new process is as follows: cutting & assembly process - 8 minutes.The decorating process is still 7 minutes per wreath.It takes 5 minutes to move the wreaths from the cutting & assembly process to the decorating process.
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(a)Compute the value-added,non-value-added,and the total lead time of the wreath process for both the old and the new manufacturing process.
(b)Compute the value-added ratio for both the old and new process.Round to the nearest decimal.

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