1. 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:

Step	Time (in minutes)
Turn off machine and remove fixture from lathe	13
Go to tool room with fixture	15
Record replacement of fixture to tool room	18
Return to lathe	20
Clean lathe	17
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	8
Total setup time	138

1. Why should management be concerned about improving setup time?
2. What do you recommend to Hammond Inc. for improving setup time?
3. How much time would be required for a setup, using your suggestion in (b)?