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Frequency of set up
Earlier Set up Time
Saving in Set up Time
No. of Lots
Idle workers during set up time
Labour Rate
New Time for Set up
Therefore savings in terms of cost due to
change in labour output
Average Production Quantity (per unit)
Volume
No of Lots
Therefore, Total savings in a year under
constant lots
Value of the machine
Effect on change in production
Run time per unit
Total savings in time
Total New Operations time
Therefore, new lots produced
Extra Units Produced
Total cost inccured in set-ups
Total cost increased due to new set-ups
Actual Savings
Value
Units
70 mins
90 mins
36 mins
15 Number
10 Number
24.00 per hour
54 mins
4,320.00
10500
21,499,924
2,048
$
$
8,845,683.02
75,000.00
$
$
$
Sr. No.
1
2
3
4
5
6
7
Assuming that 50% is actual
time
Process
Filling
Crimping
Bottle Labeling
Bottle Capping
Cartooning
Bundling
Final Packout
Total
Workers
Assumptions
The number of
workers in the first 6
processes are low
due to the complete
automation of the
process