SMED / Changeover Reduction

Set-up reduction is a valuable tool utilized in the effort to decrease overall costs and lead-times. Set-up or “change-over” is defined as the time required from the unloading or completion of the last good part until the production of the first good part of the next run. Broadly defined, set-up includes unloading of tooling and fixtures, getting new tooling, getting tools, loading fixtures, getting materials, getting paperwork and inspection of the first part. In many cases, this entire process can take place in less than 10 minutes!

A common concern exists in companies that reduction in the number of parts made before changing over will adversely affect the amount of product able to be produced. Focus is typically on Economic Order Quantity (EOQ) and amortization of cost setup over a larger number of parts. The resulting emphasis on large production runs and large lot sizes increases inventory, inventory holding and capital costs and extends the time to build and deliver the product. Lead-times are longer and costs are higher.

The SMED process focuses on reduction of setup and changeover time as a way of reducing lot sizes. In many cases, changeover of machines or processes can be accomplished in less than ten minutes and serves as a goal for change.

Benefits of a set-up reduction or SMED program include:

• Reduction of inventory
• Dramatic reduction in lead-time for the product
• Elimination of waste and nonvalue-added operations
• Improvement of plant capacity
• Increase in manufacturing flexibility
• Improvement in quality as lot sizes and lead-times shrink
• Improvement in cash flow through reduction of inventory and rapid conversion of raw materials into saleable product
• Increase in competitiveness

TAG’s approach to SMED includes:

A ½ day training session on the basic principles of lean and application of set-up reduction (SMED) to the operators and management team in the designated facility / department followed by a 4 day SMED Event in the selected area. The training will cover all aspects of SMED including real life examples of dramatically reducing the set-up, changeover, and start-up times of an operation. The SMED Event will then put the system into practice in the selected area, leading to major improvements in the set-up and changeover process in your facility. TAG’s approach to SMED is not a license to spend lots of money, but rather uses a teamwork approach to focus on working with what you already have. The sequence of events is as follows:

• Identification of the Process/Area
• Selection of the SMED Team
• Training of the SMED Team
• Analyzing the current set-up/changeover process (i.e. videoing, spaghetti diagrams, time studies, etc.)
• Determining VA/NVA steps and internal vs. external steps
• Streamlining the process via standardization and new work area design/set-up process
• Implementation to the extent possible (Document action items if necessary for team follow-up)
• Solidify results and present to management team

With full SMED implementation you can normally expect:

• Substantial improvements in changeover times with minimal investment
• Additional capacity for future growth with minimal investment
• Improved productivity and throughput
• A more organized work place
• Standardized set-up and changeover procedures
• Bottom line results

TAG recommends 6-10 participants for these events. At the completion of the event, each participant will be able to identify, analyze, and provide solutions to reduce nonvalue-adding activities in their area.

Contact TAG today to schedule a SMED / Set-up Reduction event for your facility.