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. 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. Yes No a Reason: The setup time is not a concern of the company as it is not related to productivity of the company. 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. Long setup cost can be recovered as depreciation. b b. A company plans to setup a machine to increase the productivity. The average setup time is 140 minutes. The company wishes to control the setup time. Identify the statement that suits the given situation. Identify the wait time and non-value-added time and eliminate that with effective planning so that the setup time can be reduced. Identify the machine that has less setup time. Identify the laborers are contributing less to the setup process and eliminate them from the process. None of the above. a c. How much time would be required for a setup, using your suggestion in (b)? $ minutes

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter13: Lean Manufacturing And Activity Analysis

Section: Chapter Questions

Problem 5E: Reduce setup time Vernon Inc. has analyzed the setup time on its computer-controlled lathe. The...

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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	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. 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.

Reason:

The setup time is not a concern of the company as it is not related to productivity of the company.
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.
Long setup cost can be recovered as depreciation.

A company plans to setup a machine to increase the productivity. The average setup time is 140 minutes. The company wishes to control the setup time. Identify the statement that suits the given situation.

Identify the wait time and non-value-added time and eliminate that with effective planning so that the setup time can be reduced.
Identify the machine that has less setup time.
Identify the laborers are contributing less to the setup process and eliminate them from the process.
None of the above.

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

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