Midwest Rocks receives and produces an order.What is the company's value-added time assuming the following times were measured during production of this order?
Process time: .7 days Inspection time: .25 days Move time: 1.05 days Wait time: .5 days
A) 1.8 days
B) .7 days
C) .95 days
D) 2 days
E) 2.5 days

Question

Quizplus · Accepted Answer

Value-added time refers to the time spent on activities that actually transform the product and add value to it. In this case, the process time of 0.7 days is the only value-added time, as inspection, move, and wait times do not add value to the product.

Midwest Rocks Receives and Produces an Order