• Increased productivity. When setup time is reduced, the actual production time can be increased. This allows the production equipment and resources to run for a longer period, resulting in higher productivity and output.
• Lower inventory costs. With faster production and less idle time, companies can maintain lower inventory levels but still meet customer demand. Lower inventory means lower capital costs associated with holding inventory.
• Improved flexibility. When setup time is fast, the production can switch between different products more quickly. This allows companies to customize or personalize products on demand and respond faster to changes in customer preferences.
• Reduced waste. Quicker setup helps minimize materials wasted or damaged during setup process. It also reduces the need for overproduction before a product switch. This leads to decreased waste overall.
• Improved quality. Minimizing setup time reduces opportunities for human errors or equipment adjustments that can impact quality or safety. Streamlined setup helps the process stabilize faster.
• Improved resource efficiency. When setup time decreases, the same set of equipment, tools, and operators can be utilized more fully. Less idle time means facilities and staff can be used more efficiently.
• Cost savings. Even though upfront investments may be needed to reduce setup time, the long-term cost savings can be substantial through improved productivity, less waste, optimized resources utilization, and flexibility.
Those are the major benefits of achieving zero or minimal setup time. Most lean manufacturing and continuous improvement initiatives target a reduction in setup time and related costs.