Monroe Machining Company machines metal parts for the automotive industry. Under the traditional manufacturing approach, the parts are machined…

Monroe Machining Company machines metal parts for the automotive industry. Under the traditional manufacturing approach, the parts are machined through two processes: milling and finishing. Parts are produced in batch sizes of 70 parts. A part requires 3 minutes in milling and 7 minutes in finishing. The move time between the two operations for a complete batch is 8 minutes.Under the just-in-time philosophy, the part is produced in a cell that includes both the milling and finishing operations. The operating time is unchanged; however, the batch size is reduced to 4 parts and the move time is eliminated.Determine the value-added, non-value-added, total lead time, and the value-added ratio under the traditional and just-in-time manufacturing methods. Round percentages to one decimal place.

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