Reduce Setup Time

Vernon 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 $140$ minutes, consisting of the following steps:

Turn off machine and remove fixture from lathe

Go to tool room with fixture

Record replacement of fixture to tool room

Return to lathe

Clean lathe

Return to tool room

$15$ minutes

$15$

$18$

$20$

$20$

$20$

Record withdrawal of new fixture from tool room

$12$

Return to lathe

$15$

Install new fixture and turn on machine

Total setup time

$5$

$140$ minutes

a$.$ A company plans to setup a machine to increase the productivity. The average setup time is $140$ minutes. Do you think the management needs to minimize the setup time. Identify the reason that supports the answer.

a$.$ Yes

b$.$ No

Reason:

a$.$ The setup time is not a concern of the company as it is not related to productivity of the company.

b$.$ The setup time should be considered because long setup time leads to increased economic cost of the setup.

The cost incurred for setup can be ignored as it is related to machinery.

d$.$ Long setup cost can be recovered as depreciation.