🇦🇺Australia

Excess Setup Time & Changeover Waste

2 verified sources

Definition

Result [2] identifies 'Changeover Time' as a key inefficiency (two Kaizen bursts aimed at 'reducing Changeover Time for Spot Welding'). Result [3] highlights 'high machine setup time' as a core constraint. Manual load sequencing often produces schedules that alternate between product types (e.g., RHS → SHS → Angle → RHS), maximizing changeovers. Optimized sequencing groups similar jobs (Batch-Push approach shown in [2]) to reduce setup frequency.

Key Findings

  • Financial Impact: AUD 8,000–20,000 annually per fabrication line (estimated 5–8% of direct labor cost: typical shop pays AUD 50–65/hour loaded labor × 40–50 hours/week excess changeover = AUD 2,000–3,250/month × 12 months = AUD 24K–39K gross; net avoidable after optimization ~20–30% = AUD 5K–12K).
  • Frequency: Daily (multiple changeovers per production shift)
  • Root Cause: Reactive scheduling without job family batching; lack of integrated MRP system to group similar jobs for minimum changeover transitions.

Why This Matters

The Pitch: Architectural metal shops in Australia waste 5–8% of production hours annually on unnecessary changeovers due to poor job sequencing. Intelligent batching and sequence optimization reduces setup cost by 20–30%.

Affected Stakeholders

Production Scheduler, Machine Operator, Production Engineer, Operations Manager

Deep Analysis (Premium)

Financial Impact

Financial data and detailed analysis available with full access. Unlock to see exact figures, evidence sources, and actionable insights.

Unlock to reveal

Current Workarounds

Financial data and detailed analysis available with full access. Unlock to see exact figures, evidence sources, and actionable insights.

Unlock to reveal

Get Solutions for This Problem

Full report with actionable solutions

$99$39
  • Solutions for this specific pain
  • Solutions for all 15 industry pains
  • Where to find first clients
  • Pricing & launch costs
Get Solutions Report

Methodology & Sources

Data collected via OSINT from regulatory filings, industry audits, and verified case studies.

Evidence Sources:

Related Business Risks

Production Bottleneck & Idle Equipment Loss

AUD 15,000–40,000 annually per production line (estimated 10–15% capacity utilization loss on typical AU metal fabricator with AUD 1–2M annual production value). Manufacturing rule-of-thumb: 1 hour idle capacity @ AUD 150–200/hour = AUD 150–200 per hour lost per line.

Delivery Schedule Misalignment & Lost Sales

AUD 20,000–60,000 annually per shop (estimated 3–7% revenue churn: typical AU metal fabricator = AUD 1–2M revenue; 3–7% lost sales = AUD 30K–140K; assume 50–70% margin on avoided churn = AUD 15K–50K net impact per annum).

Untracked Rework Costs in Metal Fabrication

Estimated 5-15% of labor costs annually (AUD $50,000-150,000 for typical 10-person fabrication shops) due to untracked rework hours and material waste

Manual Non-Conformance Processing Bottleneck and Schedule Delays

Estimated 10-20 hours/week of quality staff time (AUD $200-400/week per FTE = AUD $10,400-20,800/year)

Manual Shop Drawing Approval Bottleneck

Estimated 5–15 business days delay per project = 40–120 hours of fabricator idle capacity per project; typical commercial fabrication rate AUD $150–250/hour = AUD $6,000–30,000 per delayed project in lost throughput

Rework and Material Waste from Revision Cycles

Estimated 2–5% of direct material cost per project; typical shop drawing project material budget AUD $20,000–100,000 = AUD $400–5,000 rework cost per project

Request Deep Analysis

🇦🇺 Be first to access this market's intelligence