Hammond Inc. has analyzed the setup time on its computer-controlled lathe. The setup requires changing the type of fixture that holds a part. The average setup time has been 135 minutes, consisting of the following steps:
Turn off machine and remove fixture from lathe ......10 minutes
Go to tool room with fixture ............. 15
Record replacement of fixture to tool room ........18
Return to lathe ................... 20
Clean lathe ................... 15
Return to tool room ................. 20
Record withdrawal of new fixture from tool room ..... 12
Return to lathe ................... 15
Install new fixture and turn on machine ......... 10
Total setup time .................. 135 minutes
a. Why should management be concerned about improving setup time?
b. What do you recommend to Hammond Inc. for improving setup time?
c. How much time would be required for a setup, using your suggestion in (b)?