Why is zero setup time desirable? Why is zero lead time?

Setup time is the amount of time required to prepare a production process, assembly line, or machine before it starts producing goods. It includes activities such as adjusting settings, changing tools, and loading materials. On the other hand, lead time is the total time it takes from receiving an order to delivering the completed product to the customer. It encompasses the order processing, production, and shipping stages.

Having a zero setup time is desirable for the following reasons: 1. Improved productivity: When the setup time is minimized or eliminated, the production process can begin immediately which increases the overall productivity of the facility. 2. Greater flexibility: With zero setup time, a production line or machine can quickly switch between different products without any loss of time, increasing the responsiveness to changing customer demands or market requirements. 3. Reduced costs: Longer setup times can increase labor, energy, and other operational costs, and may also result in under-utilized resources such as machines. Reducing the setup time helps in decreasing these costs and improves the overall profitability of the operation. 4. Enhanced competitiveness: In an increasingly competitive global market, a company with low or zero setup time can respond more quickly to customer demands and adapt to market changes, providing it with a competitive advantage.

Zero lead time is also considered a desirable attribute for the following reasons: 1. Customer satisfaction: Customers prefer receiving their products as quickly as possible. The shorter the lead time, the more likely it is that customers will be satisfied with the company's service and place future orders. 2. Inventory reduction: Lower lead times help in reducing inventory levels by enabling faster order fulfillment. This, in turn, decreases the overall inventory holding costs, making the supply chain more efficient and cost-effective. 3. Improved cash flow: Shorter lead times lead to quicker order completion and faster payments from customers, which positively impacts the cash flow of the company. 4. Enhanced competitiveness: A company that maintains low or zero lead time can quickly capitalize on new market opportunities and stay ahead of its competitors, making it more competitive in the industry. In conclusion, zero setup time and zero lead time are considered desirable because they increase productivity, flexibility, and customer satisfaction, while reducing costs, inventory levels, and lead times, ultimately providing a competitive advantage in the market.