Production Expense
Operational expenditures accumulate whenever a surface mount technology line transitions from manufacturing one product assembly to another. This line conversion cost includes the labor required for feeder loading and the calibration of placement machines. Efficient facilities seek to minimize these expenses to maintain a high level of machine utilization and overall profitability.
Changeover Duration
Time spent on non-productive tasks reduces the total volume of units a factory can output in a shift. Calculating the line conversion cost requires tracking the minutes lost between the last good board of the old job and the first good board of the new job. Advanced scheduling software helps group similar products to reduce the number of components that must be swapped on the machine rails.
High costs in this area often stem from poor organization of the component warehouse or a lack of standardized tooling. Manual processes and the physical movement of heavy carts further extend the duration of the switch.
Financial Impact
High volume facilities can absorb these expenses more easily than high mix, low volume shops. Reducing the line conversion cost allows a contract manufacturer to accept smaller batch sizes without increasing the price per unit. Proper investment in quick change carts and offline feeder setup stations directly lowers the overhead associated with frequent product switches.
