Setup - What is the meaning of set up cost?

Q: What is the meaning of set up cost?

the cost involved in preparing and setting up a machine for the next work task, including cleaning, replacement of cutting tools or jigs etc. Set-up costs include the labour costs of preparing machines, the cost of new tools and frequently higher scrap rates immediately after machine resetting.

Answer

how much it costs to clean and set up a machine for the next job, including replacing cutting tools or jigs, etc. Machine preparation labor, new tool expenses, and, oftentimes, increased scrap rates just after resetting add up to set-up costs.

Setup - What is the meaning of set up cost?

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