Your factory produces bicycles in batches. You determine the quantity of bikes that are manufactured in each batch. Smaller batches mean your products can be finished and sent to distributors faster (lower delivery times). Larger batches mean there is less time wasted in manufacturing set-up in between batches (Setup Time).
Setup Time can be reduced by the following two decisions under your Operations menu:
1. Batch Size: The quantity of bikes manufactured in each batch size determines how many setups are required each year. If your batch size is twice as large then you need half as many set-ups between batches. However, very large batch sizes negatively impact manufacturing cycle time (lead time), which may be an issue if demand is high and your products stock out in stores.
2. Setup Time Reduction: By investing in Setup Time reduction you can reduce the time it takes to setup in between each manufacturing batch run. If it takes half as long to perform each set-up then you will waste half the amount of time.
Also be aware that your investment in Setup Time Reduction is relative to the size of your Factory. If you buy a lot of Factory Capacity, then expect to have to spend significantly more to reduce Setup Time.