Process time 2

Inspection time 0.4

Move time 0.6
Queue time 5
Throughput time 8

Value added time 2

Throughput time 8 0.25

75%

Wait time 17
Throughput time 8
Delivery cycle time 25
Receiving materials
Storing materials
Handling materials
Cutting/measuring materials
Assembling materials
Building boxes
Attaching hinges
Inspection
MCE
Value adding
Total lead time
N 1
N 2
N 3
V 5
V 7
V 12
V 3
N 2
35
27
35 77.14% Value adding
22.857142860000000% Non value adding
Value adding
Non value adding
Liability arising from defective products External 82,000
Final product testing and inspection Appraisal 40,000
Returns arising from quality problems External 24,000
Technical support provided to suppliers Prevention 52,000
Disposal of defective products Internal 98,000
Maintenance of test equipment Appraisal 53,000
Systems development Prevention 67,000
Depreciation of test equipment Appraisal 11,000
Debugging software errors Internal 87,000

External 106,000
Appraisal 104,000
Prevention 119,000
Internal 185,000