Setup reduction: does it yield lower cost?

Tooling & ProductionVol. 60 Nbr. 9, December 1994

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Summary


Machine setup

Machine setup disrupts product flow and generates production time and output losses. Production staff, accounting people and business owners express a common need to eliminate or minimize setup time to maximize business operations. The cost accounting method of calculating setup as a production process cost does not yield favorable results. Manufacturing companies must instead focus on pursuing setup reduction improvements.

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Setup reduction: does it yield lower cost?

Machine setup is as ancient as the manufacturing process itself. Setup temporarily stops product flow, which causes loss of production time and output, and nobody seems to like it. For most production people it is a necessary evil. For cost accounting peop...

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