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 15 minutes
Go to tool room with fixture 15
Record replacement of fixture to tool room 18
Return to lathe 20
Clean lathe 20
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 5
Total setup time 140 minutes
a. Why should management be concerned about improving setup time?
A (long/short) setup will result in a (small/large) production batch, which (decreases/increases) work in process inventory and (decreases/increases) lead time. (small/large) work in process inventory commits working capital that could be used for other purposes. Long lead times (decrease/increase) the company’s ability to respond to changes in customer demand.
b. Which of the following are the ways to improve Hammond Inc.'s setup time?
1. limit the trips to the tool room to one round trip, rather than two.
2. change the location of the fixtures to reduce lathe setup time.
3. eliminate the tool room and instead locate the tools in a visible location near the lathe.
4. change the entire lathe room layout, so that fewer steps are required to turn the lathe on and off, as well as clean the lathe and change fixtures for the lathe.
5. All of these are ways to improve setup time.
c. How much time would be required for a setup, using your suggestion in (b)?