Question: A setup reduction team has been working on a punch-press machine that currently takes 75 minutes for internal setup. Each part requires 1.5 minutes on

A setup reduction team has been working on a punch-press machine that currently takes 75 minutes for internal setup. Each part requires 1.5 minutes on the machine. The machine is not a bottleneck, and the motivation for reducing setup time is to reduce the unit cost of the part and to enable the machine operator to perform the setup. The labor rate for the operator is $12.50 per hour. What must the setup time be reduced to for the lot size to be 10 units and the average labor cost per unit to be $0.75?

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