Part 1.Find and describe two setup time reduction projects that you can find presented as either general information or a case study. One needs to be manufacturing/assembly and one from the service sector. Please explain the process, what was done to improve the setup process, and any resulting time and cost savings.
Part 2.A variety of assembled products are made in batches on a manual assembly line. Every time a different product is produced, the line must be changed over which causes lost production time. The assembled product of interest here has an annual demand of 12,000 units. The changeover time to set up the line for this product is 6.0 hours. The company figures that the hourly rate for lost production time on the line due to changeovers is $500/hr. Annual holding cost for the product is $7.00 per product. The product is currently made in batches of 1000 units for shipment each month to the wholesale distributor. (a) Determine the total annual inventory cost for this product in batch sizes of 1000 units. (b) Determine the economic batch quantity for this product. (c) How often would shipments be made using this EOQ? (d) How much would the company save in annual inventory costs, if it produced batches equal to the EOQ rather than 1000 units? (e) If the company undertook a setup time reduction project and reduced the setup time from 6.0 hours to 1.5 hours, what would be the total annual inventory cost for this product in its original batch size of 1000units?(f)What is the new EOQ and associated (g) total annual inventory cost after the setup time reduction project?(h) Provide a brief explanation of the various results from this multipart problem.Refer to your Chapter 3 slides from class for the required equations