Single Minute Exchange of Die (SMED)

Single Minute Exchange of Die (abbreviated SMED) is one of the many lean manufacturing techniques designed to speed up product switching processes and decrease wasteful manufacturing practices. SMED is essential in increasing productivity while reducing waste levels in manufacturing operations.

Shigeo Shingo, an internationally acclaimed industrial engineer and expert on the Toyota Production System, devised SMED. His efforts reduced changeover time for transfer stamping machines from hours to 180 seconds, saving both time and resources for production lines alike.

What is SMED?

SMED is an innovative process that significantly shortens changeover times between production runs. This is achieved by categorizing changeover elements as internal or external to machine operation time and then adapting or simplifying them during normal machine operations - thus significantly decreasing changeover times, often down to mere minutes!

An SMED project can lead to substantial savings for any company. For instance, an action figure manufacturer selling them at $20 each could lose one sale every 60 seconds as they switch from mold to mold; with proper planning and execution, an SMED project may reduce this to 10 or fewer seconds!

An SMED pit crew can serve as an analogy for SMED, with process setups and changes representative of pit stops. Pit crews employ various strategies to streamline their work - prepositioning all tools before beginning an actual pit stop, using standard attachment points and methods, etc. Their aim should be to reduce tire swap times from 15 minutes to sub-10 seconds as quickly as possible.

SMED projects at manufacturing plants may involve switching products, moving between dies, modifying jigs, gauges, materials, and more to modify processes or modify equipment while it runs or shuts down; some steps may even need to be completed when the machine shuts down - SMED projects look at ways of streamlining or eliminating these steps to reduce changeover times from hours or days down to minutes (or single digits).

Once a baseline for your changeover process has been established, elements that can be completed while the machine runs are prioritized. Internal setup processes that remain are examined for opportunities for optimization and simplification, such as eliminating motion, waiting, adjustments, creating parallel operations, or standardizing hardware.

SMED can significantly decrease manufacturing costs by streamlining processes and reducing changeover times, improving OEE, increasing machine startup rates, and helping smaller lot sizes meet customer demand faster while reducing WIP and inventory levels.

What are the benefits of SMED?

SMED (short for "Simple Manufacturing Equipment Changeover") is an equipment changeover process developed in the 1950s by industrial engineer Shigeo Shingo to assist manufacturing companies in reducing inventory levels and boosting production efficiency. Lean practitioners use SMED in virtually every setting, from factories and fast food restaurants to offices.

SMED (Source for Manufacturing Excellence and Delivery) aims to eliminate non-value-adding procedures and streamline those remaining so teams can focus on only those critical steps needed for production efficiency and reduce waste while improving employee morale.

Initial die exchange processes were called Quick Die Change; however, Shingo later changed it to Single Minute Exchange of Die to reflect his goal of shortening setup times as much as possible. Unfortunately, "single minute" can be misleading since changeover procedures do not need to take only a minute; single-digit minutes (less than 10) would be more suitable.

SMED can save time, but its other advantages also include:

Reduced manufacturing costs. Shorter changeover times lead to reduced downtime periods and lower material, labor, and energy costs. Increased flexibility. Shorter changeover times give manufacturers more ability to produce just enough products at any time while decreasing inventory carrying costs and carrying costs.

Increased Quality. Rapid changeover times allow for quicker product switches with increased frequency, meaning higher levels of consistency in quality.

Implementing the SMED process can be difficult and complex, impacting every aspect of business operations. Training your team on new procedures to explain why they will increase efficiency is crucial to ensuring the transition runs smoothly; also, developing standard work instructions helps ensure everyone knows exactly what needs to be completed and when.

Last but not least is to reduce unnecessary motion by organizing storage. Hence, it is easier for team members to find what they need quickly, using point-of-use storage where appropriate and clearly labeling equipment settings. This will also help mitigate human error during context-switching processes.

How can SMED be implemented?

Once your team is prepared to implement SMED, they must become organized. Create a list of all the elements involved in changeover processes and prioritize which can be completed while running while others must wait offline; this can speed up transitioning to single-digit minute setup times as quickly as possible. Also, consider whether any elements can be done simultaneously, such as tool prep while another part is produced; similar to how NASCAR pit crews operate, this can streamline processes further while using easily accessible standard tools can simplify processes further.

Once you have documented all of the internal elements, the next step should be identifying waste - both motion-related and time-based. To do this, simplify procedures, remove steps, and eliminate interactions that are no longer needed; equipment modification may also be required; designing highly portable machines reduces interface requirements while modular components enable moving them quickly between production lines.

Finally, it's essential to establish an initial changeover time baseline. This will enable a comparison of SMED implementation results against those from other companies that have already adopted the method. It should also recognize any Hawthorne Effect that might help your changeover times improve simply through watching and learning from the process itself.

SMED can be applied effectively in factories that manufacture action figures for children, which sell for about $20 each. The manufacturer can produce one every 60 seconds, so each time they switch molds, they lose out on sales worth $20.

To reduce these costs, the company started employing SMED strategies, such as switching from manual mold changes to one-touch systems for mold changes and cutting preparation time down from hours to minutes; lean manufacturing practices allowed them to achieve just-in-time production goals and cut inventory levels significantly.

What are the challenges of SMED?

SMED strives to reduce the time needed to change equipment from one product to another by identifying and eliminating unnecessary steps from its process and changing internal setup elements into external ones.

Industrial engineers have long understood the need to shorten changeover times. Shigeo Shingo, an engineer who worked at Toyota, developed the SMED system in the 1970s; quickly becoming popular, its usage has resulted in documented reductions of changeover time averaging 94%.

SMED can be invaluable for shortening changeover times, but companies must remember that it will only solve some of their production woes. To maximize its use and reap maximum returns from SMED, companies should focus on optimizing human and machine processes as part of a comprehensive approach to improvement.

Human improvements can be accomplished through organization and preparation, while machine improvements may involve engineering or optimization. Examples of human improvements would be creating standard work instructions, placing tools near the changeover area for easy access, labeling equipment settings, and eliminating wasteful motion.

Once a company has identified areas to improve, it must devise a plan for implementing SMED. This may involve assigning a project leader, holding brainstorming sessions, and training employees on how the new process works. Furthermore, they should set a timeline for reaching their desired results.

An unfortunate hazard of SMED processes is their tendency to prioritize speed over quality, leading to rushed or incomplete changeovers that compromise productivity and increase the risk of defects. Furthermore, it should be remembered that any successful implementation will still involve some downtime - even if only for minutes at a time.

Implementing SMED requires considering that learning its processes may take some time for teams, mainly if changes to production are significant. To combat this, new employees should receive training on SMED before beginning production work; this will give them a deeper understanding of its workings and facilitate more straightforward adaptation.

Pros of Single Minute Exchange of Die (SMED)

• Reduced Changeover Time: The primary benefit of SMED is the drastic reduction in the time required for changeovers.
• Increased Productivity: With quicker changeovers, more time is available for actual production, increasing overall productivity.
• Cost Savings: Reduced downtime leads to lower operational costs and increased profitability.
• Flexibility: Faster changeovers allow for greater flexibility in production schedules and the ability to respond to market demands.
• Improved Quality: A well-executed SMED program can also lead to improvements in product quality.
• Lean Manufacturing: SMED is a critical component of lean manufacturing, contributing to waste reduction and efficiency.
• Better Utilization of Resources: Faster changeovers mean better utilization of machines and manpower.
• Competitive Advantage: Companies that successfully implement SMED often gain a competitive edge regarding speed and responsiveness.
• More straightforward Scheduling: Reduced changeover times make production scheduling more accessible and flexible.
• Employee Engagement: Implementing SMED often involves teamwork and problem-solving, which can boost employee engagement.

Cons of Single Minute Exchange of Die (SMED)

• Initial Costs: Implementing SMED may require investment in new tools or equipment.
• Training Requirements: Employees need to be trained in the SMED methodology, which can be time-consuming.
• Complexity: While the concept is simple, the implementation can be complex and require detailed analysis.
• Resistance to Change: As with any new process, there may be resistance from employees accustomed to the old ways of doing things.
• Limited Applicability: SMED is most effective when frequent changeovers are required; it may be less beneficial in other scenarios.
• Risk of Rushing: The focus on speed could lead to mistakes or oversights.
• Dependency on Skilled Workers: The effectiveness of SMED often depends on the skill and cooperation of the workforce.
• Short-term Disruptions: Initial implementation may cause disruptions in the regular workflow.
• High Expectations: Promising dramatic improvements can lead to high expectations, and failure to meet them can be demoralizing.
• Ongoing Maintenance: SMED is not a one-time activity; it requires constant effort to maintain and improve the process.

Just-In-Time Inventory Management

Just-In-Time was developed in post-World War II Japan as a production model that reduces inventory costs while meeting customer demands in real-time. Accurate demand forecasting is vital to this method of manufacturing and delivery.

JIT relies on local sourcing, which may be more expensive. Furthermore, it requires effective communication among departments and centralized data systems.

Inventory Management

Just-in-time inventory management systems reduce waste and free up valuable space. At the same time, simultaneously rely on careful planning and coordination with multiple suppliers and trust in them to deliver raw materials on time. It works particularly well for manufacturers that produce various products but have limited warehouse storage space - for instance, a car factory might only need to store components required for each model of their cars in addition to the final vehicle itself - so as not to wait until all parts have arrived before starting production on individual customer orders.

JIT also helps reduce waste related to overproduction. Overproduction occurs when manufacturers produce more products than the market demands; this adds up in production expenses, storage fees, shipping expenses, and potentially discarded products, further adding costs associated with production processes. A successful JIT system ensures that only necessary quantities are produced while reducing or eliminating excess amounts altogether.

Utilizing a JIT inventory system can also reduce the risk of lost or defective products during production and when held for too long in storage. Defects caused by manufacturing process errors or storage issues can result in costly rework or inspection processes; JIT minimizes these expenses by ensuring products are made upon customer order with only appropriate quantities sent to customer addresses.

Just-in-time inventory systems offer another significant benefit for companies: increasing efficiency. With fewer raw materials, employees can focus more on processing and distributing orders rather than sitting idle on inventory shelves. Plus, less of your company's cash goes toward keeping things on the frame instead of being spent elsewhere!

Implementing a Just-In-Time inventory strategy can be challenging for some companies, notably smaller enterprises. The approach relies on accurate forecasting, which can be challenging to execute accurately. It requires working with multiple suppliers, which may present additional logistical or quality issues that must be managed.

Customer Service

Customer service relies heavily on providing fast and accurate information to retain customers. Unfortunately, many customer issues arise due to employees needing access to it at the moment of need; digital transformation allows employees to receive what they need just when needed - strengthening your team and improving performance overall.

The Just in Time (JIT) approach to business operations is a logistics strategy designed to reduce inventory costs by quickly delivering products, raw materials, and parts directly to production facilities when needed, thus eliminating storage needs and production waste. Successful implementation requires maintaining close relationships with suppliers while anticipating future orders.

If your business operates on a Just-in-Time production schedule, having a dependable Just-in-Time shipping partner that provides services when they are needed can be crucial. At Expedited Transportation, our expert staff and superior customer service manage your shipments for you - so you don't have to!

Just-in-time learning can help your team respond instantly to customer inquiries and strengthen customer loyalty. Instead of holding training seminars or attending sessions for new hires, this digital transformation allows your team to access the required knowledge and ongoing training into an integrated part of the workflow.

Customer contact centers require rapid and accurate responses to retain customers. Unfortunately, traditional new hire orientation and onboarding sessions do not provide enough information about each unique situation that might arise during an interaction.

Inventory Holding Costs

Inventory holding costs are a significant expense affecting profit and loss statements. By eliminating waste and obsolete or dead stock from lists, just-in-time inventory models help decrease inventory holding costs significantly and cut warehousing expenses as companies only need space for items they produce.

With just-in-time inventory management systems, purchase orders are only sent out once it has been determined how many products need to be made in a given period. Suppliers then dispatch these materials directly to your production facility so you don't have backlogged inventory in your warehouse.

Eliminate these costs altogether with a pull system, which involves replenishing only those materials and parts used during production. This can be accomplished via vendor-managed inventory systems such as Kanban cards or an Electronic Data Interchange (EDI) platform to electronically exchange inventory/purchase information.

Just-in-time inventory systems offer many advantages, including lower operating costs, enhanced customer service, and superior production quality. JIT can also shorten lead times and help respond more quickly to fluctuations in market demand. Unfortunately, JIT may come with certain downsides as well.

One challenge involves the difficulty of reworking orders for customers who change their minds or wish to return items. At the same time, another entails depending on your suppliers for performance and timeliness, which can directly impact your profits. Furthermore, manufacturing processes are exposed to higher raw-material costs, which could force you to raise prices on finished goods.

One issue with long-term inventory storage is inventory degradation caused by incorrect temperature storage, physical damage, and obsolescence. Suppose this becomes an issue for your business; disposing of or reworking old inventory may become costly. In that case, the key to successful inventory management is balancing too much stock and too little.

Timely Delivery

E-commerce has grown dramatically over recent years, accounting for an estimated 13% of global retail sales in 2018. To stay ahead of this explosion of growth, retailers need warehouse space and inventory management systems that are flexible enough to process large orders quickly and efficiently.

ShipBob provides an ideal fulfillment service solution for ecommerce companies seeking to offer fast delivery times - ultimately increasing conversion rates and revenue potential.

ShipBob fulfillment services must work seamlessly with an ecommerce business's warehouse and inventory management systems to make this work. Otherwise, getting products out quickly may become challenging in meeting customer demands.

JIT delivery (Just-In-Time delivery) is a supply chain inventory management strategy in which products are sent directly to manufacturers as needed, thus cutting inventory costs. Accurate demand forecasting ensures that producers do not produce or purchase more than necessary, reducing waste while increasing efficiency.

JIT delivery also reduces warehouse storage and inventory control costs, allowing companies to devote these resources to more productive activities, leading to greater profits overall. JIT delivery also promotes collaboration among suppliers and manufacturers while speeding up production.

JIT delivery offers another advantage: eliminating buffer inventory. Buffer stock typically exists throughout a supply chain to cover any unexpected shortages in production steps without delay. Still, JIT eliminates this by keeping a little list at each stage so any issues can be dealt with immediately when they arise.

Proper supply chain management is essential in all forms of delivery, especially with JIT deliveries, as products must not only move smoothly but also arrive at their destinations on schedule to eliminate waiting or storage costs.

Pros of Just-In-Time (JIT)

• Inventory Reduction: JIT helps reduce inventory levels, lowering the carrying costs.
• Cost Efficiency: By minimizing storage costs and reducing waste, JIT contributes to overall cost efficiency.
• Quality Improvement: JIT often leads to better quality control as defects can be detected and corrected quickly.
• Increased Cash Flow: Lower inventory levels mean less money is tied up, improving the business's cash flow.
• Flexibility: JIT allows companies to adapt more quickly to changes in customer demand.
• Resource Optimization: With JIT, resources are only used as needed, leading to more efficient use of factory space and manpower.
• Simpler Logistics: With fewer items in inventory, handling and logistics become simpler and more manageable.
• Faster Response to Market Changes: JIT enables quicker adaptation to market trends and shifts in demand.
• Enhanced Supplier Relationships: JIT often involves long-term supplier relationships, leading to better terms and reliability.
• Environmental Benefits: Lower inventory levels mean less energy required for storage, contributing to a smaller carbon footprint.

Cons of Just-In-Time (JIT)

• Supplier Risk: JIT is highly dependent on reliable suppliers; any delay can disrupt the entire production process.
• Lack of Backup Inventory: With minimal inventory, there must be more cushion for errors or unexpected demand spikes.
• Initial Implementation Cost: Setting up a JIT system can be expensive and time-consuming.
• Complexity: JIT requires sophisticated planning and coordination between various departments.
• Vulnerable to External Factors: Natural disasters can severely disrupt a JIT system.
• Quality Risks: With rapid production cycles, there's a risk of quality issues going unnoticed.
• Employee Stress: The fast-paced environment can be stressful for employees, potentially affecting job satisfaction.
• Limited Economies of Scale: JIT may not be suitable for businesses that benefit from bulk purchasing or production.
• Market Risk: A sudden change in market demand can lead to shortages or overproduction.
• Requires Cultural Shift: Successful JIT implementation may require a change in organizational culture, which can be challenging.

The Four Lean Principles That Transform Service Delivery

Lean Principles are a Scrum project management methodology that promotes waste elimination. While initially developed for manufacturing purposes, these principles have since found widespread application within service delivery.

Lean begins by identifying value. Any process or activity that doesn't add actual worth should be seen as waste and eliminated from operations.

Identifying Value

The first step of lean is identifying value, ensuring that all stages in the workflow are needed, and providing value to customers. This can be accomplished by performing a value stream mapping exercise that monitors every step from beginning to the end of your product’s journey. This ensures all processes are streamlined and eliminates unnecessary ones, saving time (speeding up your workflow), energy, and resources.

A key aspect of identifying value is learning from your past mistakes. This can be done by creating a system that encourages experimentation and analysis of your current processes. This enables you to identify bottlenecks blocking workflow and implement a solution to reduce these barriers. For example, an organization's standard problem is storing too much inventory, which increases costs and decreases productivity. Using the just-in-time method of production, like Dell did when it revolutionized the computer industry, minimizes waste by only producing what is needed at each production stage.

Another source of waste is excessive movement. This can be caused by people or driven machines moving around unnecessarily. Implementing lean tools such as Kanban can help streamline these processes. This removes the need for excess inventory, which can increase efficiency and productivity.

While lean practices have their roots in manufacturing, they can be applied in any industry. From healthcare to software development, lean principles can reduce waste and inefficiencies that cost projects time and money. Poor project management is self-reinforcing and allows teams to create a continuous process improvement cycle through iterative experiments, customer feedback, and knowledge sharing amongst team members. To start your Lean journey, consider enrolling in a Green Belt certification training course to understand the methodologies involved.

Mapping the Value Stream

As part of the Lean process, mapping your value stream is one of the first vital steps. It provides a structure to analyze how products and services reach customers cost-effectively while helping you identify waste.

At this stage, teams should carefully consider all stakeholders and the value they expect from the value stream to better focus their analysis and improvement efforts around these needs. They should also create a charter to guide their mapping effort, outlining desired future state and expected improvements such as decreased lead/cycle time/handoffs between departments/wait times, etc.

An essential concept in this stage is flow, or "rate of movement," which describes how quickly items pass through the value stream. A good way of visualizing this concept is a timeline or "time ladder," which shows the time it takes from the starting point (first fence post) through the development cycle to completion (last fence post).

At this step, the objective is to expedite all actions that contribute to product or service value as quickly as possible, emphasizing eliminating those that do not contribute directly to customer value. Although this can be challenging at times, reaping significant benefits such as shorter lead and cycle time, increased productivity, cost savings, customer satisfaction rises, and faster cycle time; 5S, poka-yoke, kaizen balanced workflow SMED inventory reduction are among several methods of implementation which may assist.

Flow

Flow is at the core of any Lean implementation; its aim should be achieved as efficiently and painlessly as possible. When operations move through with no delays or waste being created or reduced as one unit to deliver value to customers - an effect many senseis I worked with revered; some fancy terms for it include Continuous Flow, One Piece Flow, or Single Piece Flow.

The initial step should be mapping your entire value stream to facilitate flow. A Value Stream Map (VSM) shows this exact flow. Once complete, implement a pull system by decreasing inventory or work-in-progress and connecting as many value-adding steps as possible.

By streamlining production processes, companies can reduce the steps required to produce finished goods, shorten cycle times, and increase throughput. They also make it easier for teams to respond more efficiently to customer needs, so communication with customers, listening to feedback, and making changes accordingly are essential for business growth.

Implementing a pull system has several critical advantages over its traditional counterparts in Lean manufacturing, such as eliminating overproduction and inventory waste. By restricting production to what's needed, production becomes less likely to contain defects - this can be accomplished through Just-In-Time delivery of raw materials (JIT), designing processes to minimize defect risks (Poka-Yoke and Jidoka), or standardized work. Hence, all workers follow identical methods (Standardized Work).

As you continue implementing lean principles, you continually refine your operations. This will accelerate customer value delivery and allow teams to identify additional means of providing their clients even more excellent products and services.

Pull

The fourth lean principle involves employing a pull system to reduce waste. This ensures that only goods needed by actual customer demand are produced - thus eliminating waste and keeping production processes running efficiently.

Pull systems help companies decrease the inventory they keep on hand, which helps cut storage costs and other related expenses. However, implementing such a process is complex; it requires communication among departments and significant time and effort in setting up systems. Once companies have implemented three lean principles, they're in an ideal position to implement such strategies and establish pull systems.

One of the biggest mistakes a company can make when trying to implement a pull system is failing to understand what makes a product or service valuable for their customer base. Most people tend to assume it's all down to them, but listening and understanding their needs can help avoid making this errorful assumption.

Pacing production to match customer demand (Takt Time) can lead to issues when companies need more capacity. To prevent this issue, buffers must be reduced or removed entirely between production steps.

At its core, lean manufacturing demands continuous improvement - companies must constantly search for ways to optimize production processes and eliminate wasteful practices to stay slim. Continuous improvement is integral to lean manufacturing and can boost productivity levels across an organization.

Perfection

Root Cause Analysis (RCA), one of the central tools of lean methodology, helps ensure every process operates at peak performance. By pinpointing specific issues affecting your process and offering systematic approaches for improving, solving, or taking control over them - root Cause Analysis also supports continuous learning and improvement as a cornerstone principle of lean.

Whether you own an online store or construction firm, ineffective processes can drain resources and hinder optimal performance. Employing lean tools like RCA and poor project management can save time and money while increasing productivity for excellent customer value creation.

Implementing lean principles is an ongoing journey that requires team members to adapt their culture to eliminate and prevent waste. Unfortunately, top management often resists this cultural transformation, thus hindering its successful implementation in an organization.

Failure of many organizations to increase efficiency through lean tools has contributed to their ineffective implementation, and lack of knowledge surrounding lean methodologies is a contributing factor. Thus, understanding their workings is essential before adopting them in your workplace.

Lean project management tools, such as Kanban boards and sprints, can increase productivity at your company by eliminating obstacles that hinder its journey to providing value to its customers. However, waste must also be minimized; to do this effectively, you should implement four of Lean's five principles - identifying value, mapping the value stream, creating flow, and adopting a pull system. The fifth principle, "Pursue perfection," makes skinny thinking part of your organizational culture.

Pros of Lean Principles

• Waste Reduction: Lean focuses on eliminating waste in all forms, leading to more efficient operations and cosLean Principles savings.
• Increased Productivity: By streamlining processes, Lean helps improve the workforce's productivity.
• Quality Enhancement: Lean principles aim to improve quality by reducing errors and defects in the production process.
• Customer-Centric: Lean is about creating value for the customer, ensuring their needs are met efficiently.
• Flexibility: Lean allows for quick changes in production, enabling companies to adapt to market demands more efficiently.
• Employee Engagement: Lean involves employees in improving, leading to higher job satisfaction and morale.
• Sustainability: Lean's focus on continuous improvement makes it a sustainable approach for long-term success.
• Resource Optimization: Lean ensures that resources are used efficiently, reducing the need for extensive inventories.
• Transparency: Lean encourages open communication and transparency, making identifying and solving problems easier.
• Competitive Advantage: Companies that successfully implement Lean principles often outperform their competitors.

Cons of Lean Principles

• Initial Costs: Implementing Lean can require significant training and new equipment investment.
• Resistance to Change: Employees may resist Lean implementation's changes, affecting its success.
• Complexity: Lean involves a variety of tools and techniques that can be complex to implement and manage.
• Dependency on Suppliers: Lean relies on just-in-time inventory, making companies dependent on their suppliers' reliability.
• Risk of Overemphasis on Cost: The focus on cost reduction can sometimes compromise quality or employee well-being.
• Short-Term Focus: Some Lean tools focus on short-term gains, which may need to be more sustainable in the long run.
• Limited Scope: Lean is often more effective in manufacturing and may only apply to some businesses.
• Employee Burnout: The focus on efficiency and productivity can sometimes lead to burnout.
• Lack of Innovation: Lean's focus on efficiency can sometimes stifle creativity and innovation.
• Cultural Barriers: Implementing Lean may require a cultural shift, which can be challenging for some organizations.