Impact of Setup Time on R&T

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Ardavan Asef-Vaziri
Setup Batch and Total Unit Load
Load batch: the number of units processed simultaneously. The
technological capabilities of the resource define it.
Setup batch: the number of units processed consecutively after each setup.
The managerial policies of the system define it.
Setup or Changeover: activities related to cleaning, resetting, and retooling
of equipment to process another product.
Q: Setup batch or lot size; the number of units processed consecutively
after a setup.
S: Average time to set up a resource pool resource for a particular
product.
The average setup time per unit is then S/Q
S/Q is also included in Tp
What is the correct lot size or the size of the setup batch? Lot Size  or ?
The higher the lot size, the lower the unit load, and the higher the capacity.
The higher the lot size, the higher the inventory, and the higher the flow time.
Reducing the size of the setup batch is one of the most effective ways to
Impact of Setup Time on Throughput & Flow Time, Ardavan Asef-Vaziri. 2
Problem-1. Batch Size & Capacity
Product Mix: 50%-50%
10
Setup time: 30 min per min/unit
A
product
Operation
Working hours: 8 hours/day D
20 min/unit
1 machine 100% available
Compute the effective capacity under a minimum cost strategy.
Minimum Cost Strategy: Just one setup, and therefore maximum capacity.
Two setups each for 30 min = 60 mins
Tp produces 1A and 1B. We need 10+20 = 30 minutes.
Available production time = 8*60-60 = 420 mins
Capacity = 420/30 = 14 aggregate units which are 50%
Each aggregate unit is 1A and 1B (a total of 14A and 14D).

Impact of Setup Time on Throughput & Flow Time, Ardavan Asef-Vaziri. 3

Problem-1. Batch Size & Capacity
Minimum Flow Time Strategy. Synchronized flow.
Suppose we produce in batches of two units of each product.
Two setups each for 30 min = 60 mins.
Production time = 210+220= 60 mins.
Production time of each batch = 60+60=120 mins per two product units.
Production time of an aggregate product = 120/2=60
Each aggregate unit is 1A+1D
Capacity = 480/60= 8 aggregate products.
That is a total of 8A and 8D.
Smaller batches lead to lower capacity but lead to lower inventory and lower
flow time, furthermore
Demand could be less than capacity, and we may not need the maximal
capacity.

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Problem 2. Batch Size & Capacity Balance
Resource A
Resource D
Activity A1
Activity D
Activity A2
TpA1=1 min SpA1 60 min SpD= 0 min TpD= 10 min
TpA2= 1 min SpA2= 60 min c=1, c=2.
Resource A is responsible for two activities. Activity A1 produces part A1, and
activity A2 produces part A2.
TpA1=TpA2 =1 minute per part.
When we switch from one part to another, there is 60 minutes of setup time.
The volume of production of the two parts must be equal. A day is 8 hours.
Activity D has no setup time. Activity D takes TpD= 10 mins. Consider 1 and 2
resource units at resource pool D.

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Problem 2. Batch Size & Capacity Balance
a) Compute the maximum daily capacity of resource A if we want to produce
the same volume of both parts A1 and A2 each day.
Setup for A1, produce as needed, then set up A2, and produce as needed.
To total setup time =60+60=120.
480-120= 360.
Each product mix production takes 1+1 = 2 minuets,
360/2 = 180.
The batch sizes are 180 units.
The maximum daily capacity is 180A1+180A2.
The average hourly capacity is
180/8 = 22.5A1+22.5A2.

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Problem 2. Batch Size & Capacity Balance
b) Compute the capacity of Resources A if parts A1 and A2 are produced in
batches of 60 units.
For each batch of A1, we need 60+601=120
For each batch of A2, we need 60+601=120
We need 240 minutes for 60A1 and 60A2
Time to produce 1A1 and 1A2 = 240/60= 4 mins
Throughput is 1/4 = 0.25 product per minute or 60/4 =15 per hour.
Each product is 1A1+1A2.
c) These parts then go to Resource D and are assembled with part D. Suppose
TpD= 10 mins, and there is one resource unit in Resource pool D. What batch
size makes the two Resources of A and D synchronized?
Cycle time for resource D is 10 mins.
Q = Batch size for 1A1 or 1A2.

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Problem 2. Batch Size & Capacity Balance
2+120/Q= 10
120/Q= 8  8Q=120 = Q = 15
An easier way is similar to Break-Even Analysis
F+VQ=PQ
120+2Q=10Q  8Q=120  Q=15
A more difficult wat is
Throughput at A is Q/(120+2Q) per minute.
Throughput at D is 1/10 per minute.
RpA=RpD
Q/(120+2Q)=1/10
10Q=120+2Q
Q= 15

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Problem 2. Batch Size & Capacity Balance
d) Suppose we have added a second resource unit to the resource pool D to
increase the production of part D. What batch size makes the capacity of the
two Resources of A and D equal?
We can look at the cycle time.
(120+2Q) minutes to produce QA1 and QA2.
Therefore, the average cycle time to produce 1A1+1A2 is
(120+2Q)/Q= 2+120/Q
CT(A1&A2) = CT(D)
2+120/Q= 10
120/Q = 8  8Q=120  Q=15 batches
15A1 and 15A2.
Alternatively, we could have looked at the total time for each batch using a
break-even analysis
120 +2Q=5Q

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Problem 2. Batch Size & Capacity Balance
120=3Q
Q =40
A more difficult way is to look at the throughput
Throughput of D = c/TpD = 2/10
Throughput at A is Q/(120+2Q)
RpA=RpD
Q/(120+2Q) = 2/10
10Q= 2(120+2Q)
5Q=120+2Q
3Q= 120  Q= 40

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Problem-3. Capacity for a Given Batch Size
A Process with 3 Stations. One Resource in each station.
Process Steps Sta-1 Sta-2 Sta-3
Setup Time (mins) 45 30 20
Processing Time (mins) 0.15 0.25 0.2
a) Compute the process capacity when all batches are 100 units.
Tp1= 45/100+0.15 = 0.6 minutes  Rp1 = 1/0.6 =1.6667 units per min, or
100 per hr.
Tp2= 30/100+0.25 = 0.55 minutes  Rp2 = 1/0.55 =1.8182 units per min, or
109.1 per hr.
Tp3= 20/100+0.22 = 0.4 minutes  Rp2 = 1/0.4 =2.5 units per min, or 150
per hr.

b) For what batch size Sta-3 becomes a bottleneck?

For no batch size. Sta-3 always performs better than Sta-2 20<30 &
0.2<0.25.
Sta-3 dominates Sta-2.
Impact of Setup Time on Throughput & Flow Time, Ardavan Asef-Vaziri. 11
Problem-3. Capacity for a Sequence of Resources
with Setup
A Process with 3 Stations. One Resource in each station.
Process Steps Sta-1 Sta-2 Sta-3
Setup Time (mins) 45 30 20
Processing Time (mins) 0.15 0.25 0.2

c) Where is the bottleneck?

The bottleneck is either Sta-1 or Sta-2. Suppose we produce a batch size of
Q
Tp1= 45/Q+0.15, and Tp2=30/Q+0.25
If we produce 1 unit, Sta-1 is a bottleneck because it has a higher setup time.
After a specific point, station-2 becomes a bottleneck since it has a higher
time per unit.
45/Q+0.15 =30/Q+0.25  45+0.15Q=30+0.25Q
We could have also said that F1=45, V1=0.15, F2=30, V2=0.25, and then
BEA.
45+0.15Q=30+0.25Q
Impact  &Q=
of Setup Time on Throughput Flow150.
Time, Ardavan Asef-Vaziri. 12
A Process with Three Stations
d) Suppose the setup time of Sta-2 and Sta-0 is zero. We produce at batches
of size 180 at Sta-1. What would be the average inventory between Sta-1 and
Sta-2.
Process Steps Sta-1 Sta-2 Sta-3
Setup Time (mins) 45 0 20
Processing Time (mins) 0.15 0.25 0.2
45 mins set up then start to produce 180 units at a rate of 1/0.15= per min.
Production-Consumption period = 180(1/0.15)= 27 mins.
In the same period consume at rate of 1/0.25= 4 per min. That is 4(27)= 108
Max-WIP after Sta-1 = 180-108=72
Then we start production at Sta-1, and the remaining parts are consumed at
rate of 4 per min.at Sta-2
Consumption period = 72/4= 18 mins.
Average I = Max-WIP/2 = 72/2= 36 units. Cycle length 27+18=45

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Setup Time Reduction- Toyota Production System
 Toyota shortened setup times from several hours to a few minutes by
separating internal and external activities in a firm.
 Internal activities. Those for which machine needs to be down such as (i)
adjusting machine speed, (ii) placing work or fixtures on the machine.
 Turn sequential internal activities into parallel activities or resources.
 Convert internal activities to external activities.
 External activities. Those for which the machine does not have to be down
such as validating work order, searching for tools and dies, procuring
material.
 External activities should be completed before setup.
 Standardize and practice setup routines to be perfect.
 Eliminate adjustments. Smooth and simplified procedures.
 Nearby suppliers with long-term relationships
 Small batch and mixed-model production
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Mixed Model Production
Three products A, B, C. Production time: each 10 mins (Tp=10 mins).
Plant is working 5 days a week, 10 hours a day.
Demand at down stream station is A:3, B:2, C:1 units per hour.
The upstream station in each production run produces one week of demand:
A(150), B(100), and C(50).
While the customer need it at hourly rates (either to consume or use it in
production of another item) we ship it at weekly demand.
Icycle = A(75), B(50), C(25). That is 150
What if we produce AAABBC. Then the Icycle is 3. An even better model is
ABACBA

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