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Compute the value-added ratio for both old and new process

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Reference no: EM133170152

Question - 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.

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.

(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.

Reference no: EM133170152

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