Extreme Wreaths, Inc

Essay

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