Setup Reduction

Group BNeal Burkhard, Kyle Jiron, Nick Kreuter, Brett Nolan, Jacob Stefanon, Jim Quirk

What is Setup?

● Setup is the time between the last good piece of the current run and the first good piece of the next run

● It's not about cycle time ● Setup covers more than loading and unloading

workpieces.

Setup Reduction Strategies

● Six step approach to setup reductiono Analyze setup process o Separate external and internal activitieso Convert as many internal activities as possible to external

activities o Optimize the internal activities and external activities

respectively o Evaluate the impact of setup reduction for continuous

improvement o Repeat for continual improvement

Improvement Tools

● Rearrange machines/tools into cells● Use 5s● Focus on the loading and unloading times over actual

cycle times of the machine● Constant drive for improvement● Create goals● Create improvement teams with correct people● Never stop pursuing improvement

Setup Reduction: At the Heart of Lean Manufacturing

Richard Industries: Valve Manufacturing● Current changeover 50 minutes

o Reduced to 27 minuteso Long term goal of 20 minutes

● Continuous improvement goals helped influence time reduction

● No system is perfect and improvements can always be found

The Application of Setup Reduction in Lean Production

● Setup Reduction Statistics○ % Reduction in setup time and increase equipment availability

■ Given: original setup time (OST), reduced (new) setup time (RST), number of setups / month (NSPM),

● % Reduction in setup time = ((OST – RST)/OST)×100

● Additional equipment time / month = (OST – RST)×NSPM

○ Labor cost savings from setup reduction

■ Given: man-hours spent in original setup process (OSM), man-hours spent in the new setup process (RSM), additional man-hours spent in “external” activities (ASM) and number of setups / month (NSPM)

● Man-hours Savings / Month =(OSM – RSM + ASM)×NSPM

● % Man-hour Savings =(SOM –RSM + ASM) / OSM×100

○ Batch size reduction, without economic penalty

■ Given: original setup time (OST), cycle time per part (CT), original average batch size (OBS), reduced (new) setup time (RST) and new average batch size (NBS)

● Original Net Processing Time / Part =(OST + CT × OBS) / OBS

● New Net Processing Time / Part =(RST + CT × NBS) / NBS

● New (Reduced) Batch Size, Without Economic Penalty = ((OST – RST) + CT × OBS) / CT

Joint Investment in Quality Improv. & Setup Reduction

● We found an article that used logarithmic functions to improve quality and setup reduction.

● It focused on minimizing optimal total relevant cost (TRC), while finding the optimal investment for quality improvement (P*) and setup reduction (S*).

● In conclusion they found that the best plan was to bring each of the investment functions to their individual threshold. This would allow them to find the optimal solution within the budgetary limits.

This is a good example of going lean. The point of a lean project is to improve the process while staying within budget

Manufacturing Setup Cost Reduction Under Variable Lead Times and Finite Opportunities for Investment

● Capital investment vs. setup cost may actually be a discontinuous function.

● If a new fixture costs X dollars, investing 1.1X will not necessarily reduce setup cost anymore than X will.

● Conclusions - You can only invest a certain amount before there is a plateau effect among the results

● Setup reduction is a continuous process, not just a one time fix.

Setup Reduction: One Discipline You Must Master

Setup reduction is “Low Hanging Fruit” and an easy way to decrease a businesses bottom line.● Setup reduction increases on-time performance and builds customer loyalty ● Premium Time/Overtime

o Rushed set ups go wrong often take overtime to fix them● Standardizing

o Instead of having skilled workers set up machines, standard tools can have anyone setup machines

● Decrease scrapo Good programs can have a good part on the first run after setup

● Decreases Idle timeo the most obvious is that machine downtime is decreases the amount of late parts

Single Minute Exchange of Die. A Case Study Implementation

1. Analyze The set-up Operation 2. Separate internal from external3. Converting internal to external operations4. Streamline operation5. Asses the Impact6. Implement Smed methods to other aspects of company

Results: 362,960 Euro/Year

References● Albert, Mark. "Setup Reduction: At The Heart Of Lean Manufacturing." : Modern Machine Shop., 2 Apr. 2004. Web. 19 Apr.

2015.● Kim, Seung Lae, Hayya, Jack C. “Joint Investment In Quality Improvement And Setup Reduction.”: Computers &

Operators Research. Web. July 1995.● Sarker, Bhaba, Coates, Eyler “Manufacturing setup cost reduction under variable lead times and finite opportunities for

investment” International journal of production economics. 24 November, 1996, April 20 2015● Moreira,Antonio. Pais, Gil. “Single Minute Exchange of Die. A Case Study.” Journal of Technology Management and

Innovation. 4 March 2011. Web. 19 Apr. 2015.● Wiltsie, Jeff. "Setup reduction-one discipline you must master." Production Machining Feb. 2012: 16+.General OneFile.

Web. 21 Apr. 2015.● Chen, Meng. “The Application of Setup Reduction in Lean Production.” Asian Social Science. July 2010. Web. 19 Apr.

2015.