Vernon Inc. has analyzed the setup time on its computer-controlled lathe. The setup requireschanging 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 minutesGo to tool room with fixture 15Record replacement of fixture to tool room 18Return to lathe 20Clean lathe 20Return to tool room 20Record withdrawal of new fixture from tool room 12Return to lathe 15Install new fixture and turn on machine 5Total setup time 140 minutesa. Why should management be concerned about improving setup time?b. What do you recommend to Vernon Inc. for improving setup time?c. How much time would be required for a setup, using your suggestion in (b)?

Cornerstones of Cost Management (Cornerstones Series)
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Chapter20: Inventory Management: Economic Order Quantity, Jit, And The Theory Of Constraints
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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?
b. What do you recommend to Vernon Inc. for improving setup time?
c. How much time would be required for a setup, using your suggestion in (b)?

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