Ruiz Foods makes energy bars using a traditional manufacturing process. Raw materials are stored in inventory and thenmoved into production. Work in process inventory is moved across the company’s three separate departments. Theinformation below (in the Traditional column) is available for a recent order. If the company adopts lean manufacturing,management believes both move time and wait time can be reduced, as shown in the Lean column.

Required

1. Compute the total amount of non-value-added time under the traditional manufacturing process.

2. Compute cycle efficiency under the traditional manufacturing process. Round to two decimals.

3. Compute the total amount of non-value-added time under the proposed lean manufacturing process.

4. Compute cycle efficiency under the proposed lean manufacturing process. Round to two decimals.

5. Would the proposed lean approach improve cycle efficiency?

Transcribed Image Text:

Traditional Lean Activity 24 hours 4 hours 24 hours 4 hours 6 hours 2 Process time Inspection time ... Move time 3 hours 1 hour Wait time 2 hours