Question

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:

Turn off machine and remove fixture from lathe	10	minutes
Go to tool room with fixture	15
Record replacement of fixture to tool room	18
Return to lathe	20
Clean lathe	15
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	10
Total setup time	135	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.

How much time would be required for a setup, using your suggestion in (b)?

Answer 1

A long setup will result in a large production batch, which" increases"work in process inventory and "increases" lead time. large work in process inventory commits working capital that could be used for other purposes. Long lead times "decrease" the company’s ability to respond to changes in customer demand.

( A long setup time increases wip and funds get locked in wip and it tends to decrease the response time for a customer)

B) all these ways improve the setup time.

(limiting the trips, changing location of fixtures, making tools available immediately are some of the ways to improve setup time)

5. Setup time required after applying above recommended steps

=135 minutes - 20 minutes - 15 minutes - 18 minutes - 12 minutes

=70 minutes