What Is The Measurable Impact of Setup Reduction Utilizing SMED?

Many businesses do not fully understand the overall value that can be generated by focusing on Setup Reduction. A common tool that works extremely well is Single Minute Exchange of Dies (SMED). Below is a summary of the potential impact on the performance of your business.

The measurable value of SMED is typically expressed in terms of the following key performance indicators (KPIs) that reflect the improvements in setup efficiency and production effectiveness. The specific value depends on the baseline data before implementing SMED and the resulting improvements afterward. Here are some key measurable values:

1. Reduction in Setup Time

• Before SMED: Setup times may range from 30 minutes to several hours, depending on the complexity of the operation.
• After SMED: The goal is to reduce the setup time to under 10 minutes (single-digit minutes).
• Measurable Value: For example, a reduction from 60 minutes to 9 minutes (an 85% reduction).

2. Internal vs. External Setup Time

• Before SMED: The majority of setup tasks might be internal, requiring the machine to stop for long periods.
• After SMED: The aim is to shift as many tasks as possible to external setup (done while the machine is running).
• Measurable Value: Shifting 50% of internal tasks to external tasks. For example, if 80% of setup tasks were internal before SMED and 40% afterward.

3. Increased Machine Utilization

• Before SMED: Machine utilization could be low, with machines idle for extended periods during setups.
• After SMED: Machine utilization increases as setup times decrease.
• Measurable Value: For instance, utilization might improve from 70% to 90% after SMED implementation.

4. Increased Setup Frequency

• Before SMED: Fewer setups may occur because of long changeover times, leading to larger production batches and less flexibility.
• After SMED: More frequent setups are possible, leading to smaller batch sizes and higher product variety.
• Measurable Value: Setup frequency might increase from 2 per shift to 6 per shift, due to reduced setup time.

5. Reduced Downtime

• Before SMED: Downtime due to long setups could account for a significant portion of production time.
• After SMED: Downtime is reduced as setups are completed more quickly.
• Measurable Value: For instance, downtime might decrease from 2 hours per day to 30 minutes per day.

6. Reduced Lead Time

• Before SMED: Long lead times due to batch production and slow setups.
• After SMED: Lead time is reduced as more frequent setups allow for faster response to customer demand.
• Measurable Value: For example, lead time might decrease from 10 days to 4 days.

7. Cost Savings

• Before SMED: Higher costs due to inefficiencies, downtime, and larger batch production.
• After SMED: Cost savings are realized through improved efficiency, higher machine utilization, and smaller batch production.
• Measurable Value: A reduction in cost per setup, such as from $1,000 to $300, or a total operational cost savings of a certain percentage (e.g., 20% reduction in setup-related costs).

Example:

If a company had a setup time of 1 hour (60 minutes) before SMED and was able to reduce it to 9 minutes after SMED, this would represent an 85% reduction in setup time. Similarly, downtime and setup-related costs could see reductions of 50% or more.

These measurable values of SMED reflect the tangible improvements in production efficiency and overall operational performance.

GKW Business Solutions is offering a 5 Day SMED Event to embed this tool into your organization. Recent results have been dramatic. Contact Will or Mike for details of this TOOL and a recent Case Study.