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Dear Cath,
It is quite confusing for me whether machine set up costs are more likely to increase or decrease in a JIT environment. I have seen different answers in different question.
Appreciate if you could clarify the above.Thank you 🙂
Hi – I can see why there are arguments for both ideas but the reducing set-up time is essential to resolving bottlenecks.
Just in time manufacturers will aim for efficient flow through the production process so will focus on reducing set-up for key machines.
Reduced batch sizes which results from just-in-time production should reduce the setup costs and because set-up time is in itself a non-value adding activity then reduction of set up time is part of continuous improvement.Therefore, I believe that set-up costs should decrease – particularly in the long term- under a Just-in-Time system.
Hope this helps.
Cath
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