ABM, Kaizen Costing setup time. Setup labor was trained to perform the new setup procedures. The actual reduction in setup time based on the suggested changes was two hours.

Required:

What kaizen setup standard would be used at the beginning of each quarter?

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Setup Time Standard

First quarter

hour$($s$)$

Second quarter

hour$($s$)$

$2.$ How much non$-$value$-$added cost was eliminated by the end of two quarters?

$ per setup

a$.$ Setting the kaizen setup standard at the beginning of each quarter.

b$.$ Lockang in or establishing a new standard for the maintenance subcycle.

c$.$ Calculating the non$-$value$-$added cost that was eliminated at the end of two quarters.

d$.$ In the maintenance subcyde, finding out why a new setup time detenorates so that corrective action can be taken.