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Changeovers · 1 min read

Changeovers are a capital question

The time a line spends between products is capacity the business has already paid for.

Placeholder
Isometric illustration of two production lines with a tooling rack between them; one blue tooling block is pulled out toward a machine.

Placeholder. This article is placeholder copy written to test layout and tone. It is not published research and makes no factual claims.

Changeovers are often treated as a shop-floor topic. This piece argues that they belong in the capital conversation, because every recovered minute is capacity that needs no new equipment.

Measure from last good part to first good part

A changeover ends when the line makes saleable product at standard speed, not when the new tooling is in place. Measured that way, the time usually includes adjustments and slow running that never appear in the changeover log.

Exhibit 1

In this illustrative plant, the same changeover runs longest on the night shift

Illustrative data

Average changeover duration by shift, one product family, minutes

Show data table
In this illustrative plant, the same changeover runs longest on the night shift (Average changeover duration by shift, one product family, minutes)
CategoryValue
Day42 min
Swing48 min
Night66 min
Standard40 min
Link to this exhibit

Note: Values are placeholders chosen to demonstrate the exhibit format. Standard is the documented changeover time.

Source: Illustrative data; placeholder pending research

Variation is the first finding

When the same changeover takes different times on different shifts, the gap is a standard and routine question before it is an engineering one. The exhibit uses illustrative values to show how that comparison will be presented.

Price the recovered hours against the new line

A plant short of hours on its constraint can recover losses, schedule more time, or build. On the flagship report’s illustrative line, recovery is cheapest for a few hundred hours, recovery plus weekend scheduling for up to about 2,200, and only a new line covers more (Illustrative).

Exhibit 2 · The capacity you already own

In the illustrative case, the cheapest hour depends on how many the plant needs

Illustrative data

Annual cost per productive constraint hour actually needed, by option and by hours needed a year, illustrative line, dollars per hour

$0$1,000$2,000$3,000$4,00001,0002,0003,0004,0005,000Productive hours needed a yearRecover(up to 328 h)Schedule weekend hours (up to 1,875 h)Recover, then scheduleBuild a new lineBeyond 2,203 h, only a new line covers the need
Show data table
In the illustrative case, the cheapest hour depends on how many the plant needs (Annual cost per productive constraint hour actually needed, by option and by hours needed a year, illustrative line, dollars per hour)
ItemValueUnitCite
need 300 h: recover1000USD per needed hourIllustrative
need 300 h: schedule1024USD per needed hourIllustrative
need 300 h: build10510USD per needed hourIllustrative
need 300 h: stack1000USD per needed hourIllustrative
need 1000 h: recovercannot coverUSD per needed hourIllustrative
need 1000 h: schedule1024USD per needed hourIllustrative
need 1000 h: build3153USD per needed hourIllustrative
need 1000 h: stack988USD per needed hourIllustrative
need 2500 h: recovercannot coverUSD per needed hourIllustrative
need 2500 h: schedulecannot coverUSD per needed hourIllustrative
need 2500 h: build1261USD per needed hourIllustrative
need 2500 h: stackcannot coverUSD per needed hourIllustrative
need 4688 h: recovercannot coverUSD per needed hourIllustrative
need 4688 h: schedulecannot coverUSD per needed hourIllustrative
need 4688 h: build673USD per needed hourIllustrative
need 4688 h: stackcannot coverUSD per needed hourIllustrative
Link to this exhibit

Note: Recover: $300k a year program, up to 328 h (25% of losses). Schedule: weekend hours at $800 per scheduled hour, $1,024 per productive hour, up to 1,875 h. Build: $12M line, 10 years, 10% cost of capital, $1.2M a year to run; adds 4,688 h.

Source: Illustrative data. Trapped Capacity illustrative model; assumptions in Chapter 5 and formulas in the method notes.

From: The capacity you already own, Exhibit 13

Flagship report

The capacity you already own

Why the next line should be found before it is funded, and how to price the one already standing.

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