Pockets Inc. manufactures cargo pants in the cutting and sewing processes. Cargo pants are manufactured in batches of 30. The cutting time is 4 minutes per unit. The sewing time is 12 minutes per unit.
It takes 20 minutes to move a batch of jeans from cutting to sewing.
a. Compute the value-added, non-value-added, and total lead time of this process.
b. Compute the value-added ratio.