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18/02/2015
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THE SMED METHOD
JOÃO PAULO PINTO, CLT VALUEBASED SERVICES
Third Edition, 2015 February ©
CLTVALUEBASEDSERVICES©2015
“The secret of getting ahead is getting started.
The secret of getting started is breaking your
complex overwhelming tasks into small
manageable tasks, and starting on the first
one.” by Mark Twain.
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CLTVALUEBASEDSERVICES©2015
EXECUTIVE SUMMARY
• Day one (19) – 4 hours – training session – the SMED method;
• Day two (24) – 2 hours of training (SMED) and two hours to
characterize the challenge/problem in order to fill the A3PS form
with a visit to the shop floor;
• Day three (25) and day four (26) workshop in the shop floor with
small meetings in the training room;
• Day five (02) 4 hours session
to make adjustments and corrections,
evaluate the final results and fill the
After Action Report.
CLTVALUEBASEDSERVICES©2015
WHAT IS ALL ABOUT MACHINE SETUP?
• The setup time is one component of the product’s lead time;
• Lead time components can be divided in value-added and non-value
added components (normally > 95%);
• “One of the most noteworthy accomplishments in keeping the price of
Ford products low is the gradual shortening of the production cycle.
The longer an article is in the process of manufacture and the more it is
moved about, the greater is its ultimate cost.” Henry Ford, 1926.
• Every setup activity is a non-added value activity, so it needs to be
reduced or eliminated (whenever possible);
• Take a look at this short film:
https://www.youtube.com/watch?v=RRy_73ivcms#t=17
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CLTVALUEBASEDSERVICES©2015
MAIN CAUSES OF DOWNTIME
• Changeover (aka setup);
• Breakdown;
• Maintenance;
• Lack of personnel;
• Lack of materials and/or components.
These are listed in roughly the order of importance in lost hours, although
this order may vary from plant to plant;
My focus in this training course is on reducing downtime due to changeover;
In addition to reducing changeover downtime, it will help reduce the other
causes of downtime as well.
CLTVALUEBASEDSERVICES©2015
THE 3UPs’ OF CHANGEOVER
• Cleanup: is the removal of all materials from the previous lot. (removing
remaining parts or materials, sweeping floors and general tidying up);
• Setup: it is a key part of changeover, but only a part… Setup consists of the
physical conversion of the machinery to run the next product. In some cases,
this is done by adjustment. In other cases, it is replacing product-specific parts
of the machinery, such as dies. Or a combination of both.
It also include a number of operational tasks such as preparation of
documentation, material movement from warehouse to production, quality
inspection;
• Startup: sometimes called run-up or ramp-up. It is that period of time before it
has settled down into normal operation. Startup is characterized by frequent
jams, stoppages for adjustment, defective or marginal product, and anything
else that prevents it from reaching normal speed and efficiency.
For the sake of this course, CHANGEOVER and SETUP will be synonymous
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CLTVALUEBASEDSERVICES©2015
DEFINITION OF SETUP TIME
“The time between the last good
piece off the current run and the first
good piece off the next run.”
CLTVALUEBASEDSERVICES©2015
Mold Change
Colour Change
Mold change Inspect/Adjust
Setup
Time
1st Piece Time
(good or bad)
1st Good
Piece Time
0
Last good part
The time elapsed between when
the last good piece of product A
comes off and the first good
piece of product B starts.
CHANGEOVER TIME:
DEFINITION
AVAILABLE TIME
AVAILABLE OPERATING TIME
ACTUAL OPERATING TIME
EFFECTIVE
OPERATING TIME
Breakdowns
Setup/
adjustment
Idling/minor
stoppages
Less Speed
Defects in process
rework
Start-up losses
EQUIPMENT TIME
THE 6 BIG LOSSES
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CLTVALUEBASEDSERVICES©2015
THE SIX “TRADITIONAL” SETUP STEPS
Preparation
Ensures that all the tools are working properly and are
in the right location.
Extraction
The removal of the tooling, raw material, and support equipment
after the production lot is completed.
Mounting
The placement of the new tool, support equipment, and raw material
before the next production lot.
Establishing
Control Settings
Setting all the process control settings prior to the production run.
First Run
Capability
This includes the necessary adjustments required after the first
trial pieces are produced.
Setup
Improvement
The time after processing during which the tooling, machinery is
cleaned, identified, and tested for functionality prior to storage.
CLTVALUEBASEDSERVICES©2015
WASTE IN SETUP ACTIVITIES
 Defects
 Overproduction
 Waiting
 Non-utilized people
 Transportation
 Inventory
 Motion excess
 Extra processing
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TRADITIONAL ASSUMPTIONS
• Long runs (lots) are necessary to amortize the cost of setups;
• Managing production using economic order quantities (EOQ)
balances setup costs and inventory carrying costs;
• The EOQ is a model from the last century! 1950’s…
• It does not improve processes or reduces costs!
CLTVALUEBASEDSERVICES©2015
DO THESE ASSUMPTIONS MAKE SENSE IF SETUP
TIME CAN BE SIGNIFICANTLY REDUCED?
Fixed
Cost
Variable
Cost
Lot/Batch SizeEOQ
Setup Cost
Inventory Carrying Cost
Setup Cost + Inventory Carrying Cost
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SMED:
SINGLE MINUTE EXCHANGE OF DIE
Concept that says all setups should
and can take less than 10 minutes
OTED:
ONE TOUCH EXCHANGE OF DIE
Concept that says all setups should
and can take less than 100 seconds!
WHAT IS “WORLD-CLASS”
IN QUICK CHANGEOVERS?
CLTVALUEBASEDSERVICES©2015
TECHNIQUES TO QUICK
CHANGEOVER
1. Separate internal from external setup operations;
2. Convert internal to external setup;
3. Standardize function, not shape;
4. Use functional clamps or eliminate fasteners altogether;
5. Use intermediate jigs;
6. Adopt parallel operations;
7. Eliminate adjustments;
8. Mechanization.
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CLTVALUEBASEDSERVICES©2015
Defined as the elements or work
that must be carried out while
the machine or equipment is
shut down
Internal
setup
Defined as setup elements which
can take place while the machine
is in operation or after the
operation is completed
External
setup
CLTVALUEBASEDSERVICES©2015
THE INTERNAL SETUP
Operations that can only be executed when the machine is stopped
Eg.: Assembly/disassembly of die and/or adjustments.
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THE EXTERNAL SETUP
Operations can be executed when the machine is working
Eg.: transport of tools and dies.
CLTVALUEBASEDSERVICES©2015
 Reduce inventory
 Reduce batch sizes
 Reduce changeover time
 Reduce impact on equipment utilization
 Improve quality after changeover
 Improve repeatability
 Improve throughput
 Improve flexibility
Observe
and
record
Separate
internal and
external
activities.
Convert
internal
activities to
external
activities
Streamline all
activities
Document
internal
and
external
procedures
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CLTVALUEBASEDSERVICES©2015
What is SMED?
• SINGLE MINUTE EXCHANGE OF DIES
• Developed by Shigeo Shingo;
• “A Revolution in Manufacturing: The SMED System”
• Toyota, using his techniques, reduced setup time from
days to three minutes
• A system designed to radically reduce the
amount of time to perform a changeover or setup.
• https://www.youtube.com/watch?v=jW-pl4HBxWM
1909-1990
CLTVALUEBASEDSERVICES©2015
REDUCE SETUP TIMES
Use one-touch system to eliminate
adjustments (save 10 minutes)
Step 4
Step 5
Training operators and standardizing
work procedures (save another 2 minutes)
INITIAL SETUP TIME
Step 2
Move material closer and
improve material handling
(you save 20 minutes)
Step 1
Separate setup into preparation (external) and
actual setup (internal), doing as much as
possible while the machine/process is
operating
(you can save 30 minutes)
Step 3
Standardize and
improve tooling
(save 15 minutes)
90 min —
60 min —
45 min —
25 min —
15 min —
13 min —
—Repeat cycle until sub-minute setup is
achieved
Step 6
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FOCUS ON THE PROCESS,
NOT THE TECHNOLOGY
1. SMED should be inexpensive;
2. Well planned;
3. Well practiced/executed;
4. Without Standard Work, there is no
continuous improvement.
CLTVALUEBASEDSERVICES©2015
SEVEN STEPS TO
IMPLEMENTING SMED
1. Observe the current methodology
• Watch a full changeover at least once;
• Videotape is best.
2. Separate the INTERNAL and EXTERNAL activities.
(internal activities are those that can only be performed
when the process is stopped). For example, go and get the
required tools for the job BEFORE the machine stops.
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3. Convert (where possible) Internal activities into
External ones (pre-heating of tools is a good example of
this);
4. Streamline the remaining Internal activities, by
simplifying them.
Focus on fixings - Shigeo Shingo rightly observed that it's
only the last turn of a bolt that tightens it, the rest is
just movement.
CLTVALUEBASEDSERVICES©2015
Only the final turn on a bolt adds value;
The interrupted screw (or interrupted
thread) provides one means of
clamping and unclamping something
quickly. Artillery breeches have been
sealed in this manner since the
nineteenth century.
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EXAMPLES OF QUICK FASTENERS
Usually a bolt is the most popular
fastening tool. But because a bolt
fastens at the final turning of the
nut can loosen at the first turn, a
convenient fastening tool that
would allow only a single turning of
the nut should be devised.
CLTVALUEBASEDSERVICES©2015
5. Streamline the External activities, so that they are
of a similar scale to the Internal ones;
6. Document the new procedure and the actions that are
yet to be completed;
7. Do it all again: For each iteration of the above
process, a 45% improvement in setup times should be
expected, so it may take several iterations to cross the
ten-minute line.
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CLTVALUEBASEDSERVICES©2015
SEPARATE INTERNAL AND EXTERNAL ACTIVITIES
All Setup Activities Run
III IE E EE Run
Externals Internals Run
ExternalsPost-setup
externals
INTERNAL ELEMENTS:
Operations that must be performed while the machine/process is stopped
EXTERNAL ELEMENTS:
Operations that can be performed while the machine/process is running
CLTVALUEBASEDSERVICES©2015
CONVERT INTERNALS TO EXTERNALS ACTIVITIES
InternalsExternals Run
InternalsExternals Run
InternalsExternals Run
Externals Intern Run
Externals Internals Run
Eliminate adjustment
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CLTVALUEBASEDSERVICES©2015
HOW TO CONVERT EXTERNALS
TO INTERNALS ?
 Eliminate search-and-find work;
 Arrange tools & materials beforehand;
 Complete preparation work before starting changeover;
 Standardize settings;
 Make visual marks vs. trial and error adjustments;
 Eliminate trial runs;
 Postpone “put away” work…
CLTVALUEBASEDSERVICES©2015
STREAMLINE ALL ACTIVITIES
Machine
running
Machine
running
Last good piece of
product A
First good piece of
product B
Total setup
Internal and external elements
Internal
elements
Machine
running
Machine
running
Last good piece of
product A
First good piece of
product B
Total setup
External elements External elements
Streamlined
internal
elements
Machine
running
Machine
running
Last good piece of
product A
First good piece of
product B
Total
setup
Streamlined
External
elements
Streamlined
External
elements
BEFORE
AFTER
CHANGE
OVER
STREAM
LINE
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STREAMLINE INTERNAL PROCESS
 Create parallel steps –
completed at the same time
 Reduce complexity and eliminate
waste
 Use functional fixtures and jigs
 One motion fasteners
 Levered or one-turn fasteners
 Interlocking wedge or slot
 Eliminate adjustments
 Use angle and flat
 Use preset pins, guides, notches
etc.
 Eliminate need to leave the machine
 Use POUS and Mizu…
STREAMLINE EXTERNAL PROCESS
 Adopt functional standards
 Visual factory locations for tools
 Color coding
 Standard set ups
 Checklists
CLTVALUEBASEDSERVICES©2015
•Document who will do what and when
•Practice quick changeover (QCO) before doing it
CREATE NEW PROCESS
DOCUMENTINTERNAL&EXTERNALPROCEDURES
Run pilot of new process:
• document steps of new process
• time steps of new process
• document improvement opportunities
• videotape and look for additional opportunities
TEST NEW PROCESS
•Make adjustments, as needed
•Re-test, if necessary
• Create new work sheets that include all the steps of the new process
• Get all needed approvals
• Train all workers
• Post the standardized work sheets (STW)
DOCUMENT NEW PROCESSES
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SOMEIDEAS
CLTVALUEBASEDSERVICES©2015
SOMEIDEAS
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For example:
• A slide clamp reduced the time required to
load and unload parts to fixture.
• 2 hold-down clamps eliminated the need to tape
parts during a glue-up operation.
SOME IDEAS
CLTVALUEBASEDSERVICES©2015
MANUFACTURING SMED EXAMPLES
Modified bolts, tighten in few turns
Reduce options, improve standards (less time, less errors, less tools!)
SOMEIDEAS
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SOMEIDEAS
CLTVALUEBASEDSERVICES©2015
If the mountain will not come
to Mahomet, Mahomet must
go to the mountain.
B E F O R E
A F T E R
SOMEIDEAS
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MAGNETIC PLATE
SOMEIDEAS
CLTVALUEBASEDSERVICES©2015
CONNECTIONS
SOMEIDEAS
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RAPID CENTRING
SOME IDEAS
CLTVALUEBASEDSERVICES©2015
Before
After
Mold
Stopper
Cam
lock
Eliminate bolts
QUICK RELEASE CAM LOCK
TOGGLE LOCK DOWN CLAMP
SOMEIDEAS
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SOME IDEAS
CLTVALUEBASEDSERVICES©2015
PARALLEL OPERATIONS
Eg.: two operators performing operations in the front and rear of the machine
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LOOK FOR…
1. Look for opportunities to eliminate waste in your
changeovers, then go after them – use the A3 template provided
2. Shortages, mistakes, inadequate placement of needed
equipment. Can be avoided by using check tables,
especially visual ones, and setup on an intermediary jig;
3. Inadequate or incomplete repairs to equipment;
4. Optimization for least work as opposed to least delay;
CLTVALUEBASEDSERVICES©2015
5. Unheated molds which require several wasted 'tests'
before they will be at the temperature to work;
6. Equipment using slow, precise adjustments for the large
coarse part of adjustment;
7. Lack of visual lines or benchmarks for part placement on
the equipment;
8. Forcing a changeover between different raw materials
when a continuous feed, or near equivalent, is possible;
9. Lack of functional standardization, that is standardization
of only the parts necessary for setup, eg. all bolts use
same size spanner, die grip points are in the same place
on all dies;
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10. Much operator movement around the
equipment during setup;
11. More attachment points than actually required
for the forces to be constrained;
12. Attachment points that take more than one turn to fasten;
13. Any adjustments after initial setup;
14. Any use of experts during setup;
15. Any adjustments of assisting tools such as guides or
switches.
CLTVALUEBASEDSERVICES©2015
THE VISUAL WORKPLACE
Visual utensil holder encourages
housekeeping
A “3-minute service”
clock reminds employees
of the goal
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CLTVALUEBASEDSERVICES©2015
THE VISUAL WORKPLACE
Visual signals at each room notify support personnel
Andon
Patient/machine waiting
Doctor/maintenance
in room
Room Clear
Machine working properly
CLTVALUEBASEDSERVICES©2015
USING COLOUR CODES
Different
colours for
different
family parts…
Different colors marked on
the dies as well as on their
storage locations.
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part mounting fixtures
that are all standardized
and colour coded for a
family of parts to be
machined
The fixtures are so
designed that all the
same tools are used and
their zero positions are
also same for the entire
family of parts. And,
these fixtures are held
by a hydraulic chuck.
CLTVALUEBASEDSERVICES©2015
Todas as ferramentas
de corte e as posições
finais de corte também
estão padronizadas
This picture shows the
chuck, the fixture and
a part in it.
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CLTVALUEBASEDSERVICES©2015
THE IMPORTANCE OF ORGANIZATION
An example of unorganized tool drawer
TELL ME WHAT DO YOU WANT?
and an organized tool drawer
CLTVALUEBASEDSERVICES©2015
BEFORE AFTER
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You may also talk about “shadow boards” where the outlines or the shapes of the tools are painted
on the board, which makes sure that after a tools is used it is replaced in the same location.
CLTVALUEBASEDSERVICES©2015
This assembly bench
has colour coordinated
bins, and power tools.
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An example of
gages placed in an
organized manner.
CLTVALUEBASEDSERVICES©2015
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ANALYSE THE ENVIRONMENT
• Improve access to tools and fixtures;
• Consider the use of 5S methodology to reduce time to identify, find
and storage materials, components, tools and fixtures;
• Consider the establishment of a Setup Team (involving operators from
quality, maintenance and production);
• Consider involving process engineering dept to change machines…
• Create some “pressure” on the setup team using a countdown timer
(define a target setup time and reword improvements as long quality
and safety are not compromised);
• There many free apps related with countdown timers…
http://www.online-stopwatch.com/countdown-timer/
CLTVALUEBASEDSERVICES©2015
IDEAS FOR IMPROVEMENT
Setup sheet
Prints
Special instructions
Gauges
Set blocks
Stop gauges
Special tools
SETUP
TOOL
CARTS
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SETUP
DIE CARTS
Documentation
Tools
Rollers
Turntable
IDEAS FOR IMPROVEMENT
CLTVALUEBASEDSERVICES©2015
Slot address labels
Slot
address
Model
Slide
value
Part Line #Cover
Block
gauge #
ORGANIZE AND STORE
IN PROXIMITY
IDEAS FOR IMPROVEMENT
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THESETUPOFYOURWORKINGPLACE
CLTVALUEBASEDSERVICES©2015
IMPROVEMENTSINSETUPTIMEREDUCTION
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WHEN SHOULD WE AUTOMATE?
 Criterion 1:
The operation has already been dramatically simplified;
 Criterion 2:
Begin with semi automation to achieve 80% benefit at 20% cost;
 Criterion 3:
The automation is cost-effective.
CLTVALUEBASEDSERVICES©2015
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COST OF CHANGEOVER
Consider this example:
• A project proposes to reduce changeover time by 10 minutes/day by purchasing
an additional set of change parts at a cost of €50k.
• This will allow externalization of parts cleaning;
• Management is likely to look at this, think “It’s only 10 minutes!?,” and disallow
the expenditure;
• Ten minutes does not seem very significant…
• But, If the cost of changeover downtime has been established as €12k/hour, this
means that the additional set of parts will produce a savings of €2k/day (or
€500k/year, based on 250 days/year);
• Management will likely be thrilled at the one-month payback.
CLTVALUEBASEDSERVICES©2015
• 10 min/day may not seam an impressive figure, but you express it in annual
terms and it becomes quite impressive!
• It is more than on shift week of lost production per year (10 min × 250
days/60 minutes/hour = 41.6 hours).
• Is gaining an additional week of production capacity worth €50k?
• This is an easier decision for management to make than deciding whether 10
minutes is worth €50k.
• Changeover costs take two forms: Tangible and Intangible.
• Examples of tangible costs: The cost of labour involved in changeover,
materials, energy, etc…
• Intangible costs are difficult or impossible to calculate. That does not mean
they are less important than tangible costs. In some cases they may be even
more important in terms of amount and impact on the business.
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TANGIBLE COSTS
LOST PRODUCTION (this is the most obvious cost, anyone can see it)
• Assume a per-unit contribution (margin) of €1 at the end of the line. If the line
speed is 200 parts/min, the lost contribution will be €200/min or €12k/hour;
• This is a bit simplistic and assumes that a plant is running at full capacity…
• A plant that is running at significantly less than full capacity may not even have
enough work to fill the normal work day. In this case, lost production time from
changeover has essentially no production direct cost...
• Even so, it is still not totally free. If lines are being underutilized, freeing up the
teammates with reduced changeover will allow them to perform other tasks such
as cleaning, maintenance, training, and particularly developing and implementing
improvements.
CLTVALUEBASEDSERVICES©2015
LOST CAPACITY
• It is the other side of the coin. If a plant is running at 100% capacity,
when the marketplace demands more product, the only way to supply
it is by purchasing additional production equipment, hiring additional
people, and possibly constructing additional manufacturing space...
Assume a plant that is operating 24/7/365 and is its capacity is
completely taken. Line speed is 200 PPM with 30% downtime for setup.
• Total annual production is
200 × 60 × 24 × 365 × .70 = 73,584,000 products/year
• If changeover downtime can be cut in half (usually a reasonable goal);
• The total output increases to (60 × 24 × 365 × .85) 89,352,000 PPY;
• This is an increased output of 15,768,000 PPY…
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IMPACT ON INVENTORIES
• One popular way to reduce total changeover cost is to reduce the
number of setups by increasing lot size. But this is not good…
• Inventory is very expensive…
• One way to think of it is as an interest charge, typically around 30%,
based on the average value of the inventory.
• A plant holding €5M worth of inventory will pay about €1,5M/year in
carrying or holding costs;
• Reducing average inventory levels will reduce those annual inventory
carrying costs.
CLTVALUEBASEDSERVICES©2015
Consider this:
• One company needs to produce 200k/week units of one product;
• It can produce a single large lot. If shipped uniformly over 5 days, it will
result in an average inventory level of 100k units;
• If the value of each unit is €2, the total annual inventory carrying cost
will be €60k.
• The second option is to produce five production lots of 40k units each;
• The total production is the same. All units are shipped uniformly over 5
days.
• Average inventory is 20k units and annual inventory cost is €12k.
• This represents an annual savings of €48k/year. Multiple products will
multiply the savings…
• Savings from reduced inventory is offset by the increased costs of more
frequent changeover.
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LABOUR COSTS
• After measuring the total time spent by direct and indirect labour, and
establishing their rates, it is easy to determine the labour cost of
changeover time.
Example:
• Assume that 2 mechanics at €30/hour plus 2 operators at €20/hour
spend 2 hours on the floor working on the changeover.
• They are supported by a clerk who spends 30 min on documentation at
€20/hour, 1 washroom person who spends 1 hour at €20/hour, a
warehouse worker who spends 1 hour at €20/hour, and a quality
inspector who spends 15 minutes at €20/hour approving the line for
production.
• Total labour cost of the changeover is as follows:
€120 + €80 + €10 + €20 + €20 + €5 = €255
CLTVALUEBASEDSERVICES©2015
PRODUCT AND MATERIAL LOSSES
• Product and material is lost at all stages of changeover.
• At the end of the run, product will remain on the line that may need to
be discarded as part of cleanup;
• During setup, it is frequently necessary to use product and materials
for testing or setting. In most cases this is discarded;
• Once the process is restarted, there is the setup period where there
will be higher-than-normal rejects;
• The cost of materials used in changeover can be significant.
• One of the focuses of lean changeover must be to reduce these losses.
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INTANGIBLE COSTS
• Intangible costs can be hard to see and even more difficult to measure;
• That does not mean that they are not significant. They are, and must
be recognized and addressed.
Examples of intangible costs:
• Response to the customer;
• Capacity utilization;
• Quality;
• Stress on People, Machines, and Systems;
• Reduced Innovation.
CLTVALUEBASEDSERVICES©2015
THE STANDARD
OPERATING
PROCEDURE
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THE STANDARD OPERATING PROCEDURE
• Imagine an orchestra with no conductor and no musical score…
it would be pure cacophony…
• The SOP is the score by which all participants know what they are to do, how,
and when. The supervisor is the conductor who keeps them on task;
• A well-trained changeover team may not need much instruction and
supervision. They always need some. It is only by this means that proper and
efficient changeovers can be performed;
• SOP’s can be presented in a variety of formats: textual, pictorial, schematic,
flow charts, or a combination.
• The goal of any SOP is to properly guide operators through the changeover;
• SOPs are sometimes confused with checklists, but they are two different
things…
CLTVALUEBASEDSERVICES©2015
THE SOP TEMPLATE
1. PURPOSE
2. GENERAL INFORMATION
2.1 Scope
2.2 Safety
2.3 Responsibility
3. MATERIALS
4. TOOLS
5. DEFINITIONS
6. PROCEDURE
6.1
6.1.1
6.1.1.1
7. DOCUMENTATION
8. ATTACHMENTS
8.1 Machine settings
8.2 Machine layout drawings
9. REFERENCES
10. CHECKLIST
Title SOP No
Written by: Revi. No
Approved by: Date
Structure of this SOP
1. PURPOSE
2. GENERAL INFORMATION
3. MATERIALS
4. TOOLS
5. DEFINITIONS
6. PROCEDURE
7. DOCUMENTATION
8. ATTACHMENTS
9. REFERENCES
10. CHECKLIST
João Paulo Pinto ©, 2015
STANDARD OPERATING PROCEDURE FOR LEAN CHANGEOVER
CHALLENGE:
Let’s do the SOP for our
machine, this template is
just a suggestion, it can be
improved…
18/02/2015
40
THE SMED FORMS
CLTVALUEBASEDSERVICES©2015
CLTVALUEBASED SERVICES 2015 ©
S E T U P - M O T I O N D I A G R A M (aka the "SPAGHETTI DIAGRAM")
DEPARTMENTEQUIPMENT TOTAL DISTANCE TRAVELLED
Record each step using a camera…
80 de 88
18/02/2015
41
CLTVALUEBASEDSERVICES©2015
Equip Process Date
   D s Internal External
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
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22
Sum Suggestion: determine the key racios
CLTVALUEBASED SERVICES 2015 ©
No
O B S E R V A T I O N F O R M - A N A L Y S I S O F S E T U P T A S K S
Classification of Tasks Duration
Notes and AnalysisDescription of the Setup Task(including necessary tools)
CLTVALUEBASEDSERVICES©2015
Theme
Team Date 10/2/2015
members
Company Name Here
1. PROBLEM/OPPORTUNITY DEFINITION
2. OBJECTIVE - TARGET CONDICTION
3. CAUSE AND EFFECT ANALYSIS
João Paulo Pinto ©, 2015
A3 REPORT
4. PLANNING AND ACTIONS
5. RESULTS
6. CHECK AND FOLLOW-UP
7. REWARD AND SHARE THE RESULTS
1
2
3
4
5
6
18/02/2015
42
CLTVALUEBASEDSERVICES©2015
3W Theme Sponsor Date
Team Leader Observations
No What When Who Objective or Target
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
Team members: Notes:
JOAOPAULOPINTO© 2015
A3. 3W PLANNING SHEET
Your Company Name here
PLANNING HORIZON (up to 10 hours/days/weeks or months)
10/02/2015
CLTVALUEBASEDSERVICES©2015
Setupskills
Key:
CLT VALUEBASED SERVICES 2015 © 100% 75% 50% 25% 0%
S E T U P S K I L L S M A T R I Z
Operator Name
18/02/2015
43
CLTVALUEBASEDSERVICES©2015
Product, service or process
Description Date
Issued by:
Op Description Failure mode Effect Cause
Occurence
Severity
Detection
NPR
Contra-medidas a implementar
Occurence
Severity
Detection
NPR
1 0 0
2 0 0
3 0 0
4 0 0
5 0 0
6 0 0
7 0 0
8 0 0
9 0 0
10 0 0
11 0 0
12 0 0
13 0 0
14 0 0
15 0 0
16 0 0
Use a scale from 1 to 10 Use a scale from 1 to 10
João Paulo Pinto © 2015Your Company Name here
Project identificationTeam members Copies to:
FAILURE MODE AND EFFECT ANALYSIS
CLTVALUEBASEDSERVICES©2015
Theme Code Date
Leader Observations
JOAO PAULO PINTO © 2015Company Name here
ANALYSIS OF RESULTS AND LESSONS LEARNT RECOMENDATIONS
A3. A F T E R A C T I O N R E P O R T
PROJECT'S SUMMARY ANALYSIS OF CRITICAL TASKS
10/02/2015
18/02/2015
44
CLTVALUEBASEDSERVICES©2015
SOME KEY REFERENCES…
Development Team PP, 1996. Quick changeover for operators:
the SMED System. Productivity Press.
HENRY JH, 2013. Achieving lean changeover - putting SMED to
work. CRC Press (Taylor & Francis Group).
PINTO JP, 2009. Pensamento Lean – a filosofia das organizações
vencedoras. Edições Lídel.
SHINGO S, 1985. A revolution in Manufacturing: The SMED
System. Productivity Press.
CLTVALUEBASEDSERVICES©2015
João Paulo Pinto, Eng
CLT VALUEBASED SERVICES Lda
www.cltservices.net
mgt@cltservices.net
Av da República, 2491 – 4º piso, sala 41
VN de Gaia – PORTUGAL
Telf. (+351) 936.000.079
Fax. (+351) 220.162.407

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The SMED Method by CLT Services

  • 1. 18/02/2015 1 THE SMED METHOD JOÃO PAULO PINTO, CLT VALUEBASED SERVICES Third Edition, 2015 February © CLTVALUEBASEDSERVICES©2015 “The secret of getting ahead is getting started. The secret of getting started is breaking your complex overwhelming tasks into small manageable tasks, and starting on the first one.” by Mark Twain.
  • 2. 18/02/2015 2 CLTVALUEBASEDSERVICES©2015 EXECUTIVE SUMMARY • Day one (19) – 4 hours – training session – the SMED method; • Day two (24) – 2 hours of training (SMED) and two hours to characterize the challenge/problem in order to fill the A3PS form with a visit to the shop floor; • Day three (25) and day four (26) workshop in the shop floor with small meetings in the training room; • Day five (02) 4 hours session to make adjustments and corrections, evaluate the final results and fill the After Action Report. CLTVALUEBASEDSERVICES©2015 WHAT IS ALL ABOUT MACHINE SETUP? • The setup time is one component of the product’s lead time; • Lead time components can be divided in value-added and non-value added components (normally > 95%); • “One of the most noteworthy accomplishments in keeping the price of Ford products low is the gradual shortening of the production cycle. The longer an article is in the process of manufacture and the more it is moved about, the greater is its ultimate cost.” Henry Ford, 1926. • Every setup activity is a non-added value activity, so it needs to be reduced or eliminated (whenever possible); • Take a look at this short film: https://www.youtube.com/watch?v=RRy_73ivcms#t=17
  • 3. 18/02/2015 3 CLTVALUEBASEDSERVICES©2015 MAIN CAUSES OF DOWNTIME • Changeover (aka setup); • Breakdown; • Maintenance; • Lack of personnel; • Lack of materials and/or components. These are listed in roughly the order of importance in lost hours, although this order may vary from plant to plant; My focus in this training course is on reducing downtime due to changeover; In addition to reducing changeover downtime, it will help reduce the other causes of downtime as well. CLTVALUEBASEDSERVICES©2015 THE 3UPs’ OF CHANGEOVER • Cleanup: is the removal of all materials from the previous lot. (removing remaining parts or materials, sweeping floors and general tidying up); • Setup: it is a key part of changeover, but only a part… Setup consists of the physical conversion of the machinery to run the next product. In some cases, this is done by adjustment. In other cases, it is replacing product-specific parts of the machinery, such as dies. Or a combination of both. It also include a number of operational tasks such as preparation of documentation, material movement from warehouse to production, quality inspection; • Startup: sometimes called run-up or ramp-up. It is that period of time before it has settled down into normal operation. Startup is characterized by frequent jams, stoppages for adjustment, defective or marginal product, and anything else that prevents it from reaching normal speed and efficiency. For the sake of this course, CHANGEOVER and SETUP will be synonymous
  • 4. 18/02/2015 4 CLTVALUEBASEDSERVICES©2015 DEFINITION OF SETUP TIME “The time between the last good piece off the current run and the first good piece off the next run.” CLTVALUEBASEDSERVICES©2015 Mold Change Colour Change Mold change Inspect/Adjust Setup Time 1st Piece Time (good or bad) 1st Good Piece Time 0 Last good part The time elapsed between when the last good piece of product A comes off and the first good piece of product B starts. CHANGEOVER TIME: DEFINITION AVAILABLE TIME AVAILABLE OPERATING TIME ACTUAL OPERATING TIME EFFECTIVE OPERATING TIME Breakdowns Setup/ adjustment Idling/minor stoppages Less Speed Defects in process rework Start-up losses EQUIPMENT TIME THE 6 BIG LOSSES
  • 5. 18/02/2015 5 CLTVALUEBASEDSERVICES©2015 THE SIX “TRADITIONAL” SETUP STEPS Preparation Ensures that all the tools are working properly and are in the right location. Extraction The removal of the tooling, raw material, and support equipment after the production lot is completed. Mounting The placement of the new tool, support equipment, and raw material before the next production lot. Establishing Control Settings Setting all the process control settings prior to the production run. First Run Capability This includes the necessary adjustments required after the first trial pieces are produced. Setup Improvement The time after processing during which the tooling, machinery is cleaned, identified, and tested for functionality prior to storage. CLTVALUEBASEDSERVICES©2015 WASTE IN SETUP ACTIVITIES  Defects  Overproduction  Waiting  Non-utilized people  Transportation  Inventory  Motion excess  Extra processing 10 de 88
  • 6. 18/02/2015 6 CLTVALUEBASEDSERVICES©2015 TRADITIONAL ASSUMPTIONS • Long runs (lots) are necessary to amortize the cost of setups; • Managing production using economic order quantities (EOQ) balances setup costs and inventory carrying costs; • The EOQ is a model from the last century! 1950’s… • It does not improve processes or reduces costs! CLTVALUEBASEDSERVICES©2015 DO THESE ASSUMPTIONS MAKE SENSE IF SETUP TIME CAN BE SIGNIFICANTLY REDUCED? Fixed Cost Variable Cost Lot/Batch SizeEOQ Setup Cost Inventory Carrying Cost Setup Cost + Inventory Carrying Cost
  • 7. 18/02/2015 7 CLTVALUEBASEDSERVICES©2015 SMED: SINGLE MINUTE EXCHANGE OF DIE Concept that says all setups should and can take less than 10 minutes OTED: ONE TOUCH EXCHANGE OF DIE Concept that says all setups should and can take less than 100 seconds! WHAT IS “WORLD-CLASS” IN QUICK CHANGEOVERS? CLTVALUEBASEDSERVICES©2015 TECHNIQUES TO QUICK CHANGEOVER 1. Separate internal from external setup operations; 2. Convert internal to external setup; 3. Standardize function, not shape; 4. Use functional clamps or eliminate fasteners altogether; 5. Use intermediate jigs; 6. Adopt parallel operations; 7. Eliminate adjustments; 8. Mechanization.
  • 8. 18/02/2015 8 CLTVALUEBASEDSERVICES©2015 Defined as the elements or work that must be carried out while the machine or equipment is shut down Internal setup Defined as setup elements which can take place while the machine is in operation or after the operation is completed External setup CLTVALUEBASEDSERVICES©2015 THE INTERNAL SETUP Operations that can only be executed when the machine is stopped Eg.: Assembly/disassembly of die and/or adjustments.
  • 9. 18/02/2015 9 CLTVALUEBASEDSERVICES©2015 THE EXTERNAL SETUP Operations can be executed when the machine is working Eg.: transport of tools and dies. CLTVALUEBASEDSERVICES©2015  Reduce inventory  Reduce batch sizes  Reduce changeover time  Reduce impact on equipment utilization  Improve quality after changeover  Improve repeatability  Improve throughput  Improve flexibility Observe and record Separate internal and external activities. Convert internal activities to external activities Streamline all activities Document internal and external procedures
  • 10. 18/02/2015 10 CLTVALUEBASEDSERVICES©2015 What is SMED? • SINGLE MINUTE EXCHANGE OF DIES • Developed by Shigeo Shingo; • “A Revolution in Manufacturing: The SMED System” • Toyota, using his techniques, reduced setup time from days to three minutes • A system designed to radically reduce the amount of time to perform a changeover or setup. • https://www.youtube.com/watch?v=jW-pl4HBxWM 1909-1990 CLTVALUEBASEDSERVICES©2015 REDUCE SETUP TIMES Use one-touch system to eliminate adjustments (save 10 minutes) Step 4 Step 5 Training operators and standardizing work procedures (save another 2 minutes) INITIAL SETUP TIME Step 2 Move material closer and improve material handling (you save 20 minutes) Step 1 Separate setup into preparation (external) and actual setup (internal), doing as much as possible while the machine/process is operating (you can save 30 minutes) Step 3 Standardize and improve tooling (save 15 minutes) 90 min — 60 min — 45 min — 25 min — 15 min — 13 min — —Repeat cycle until sub-minute setup is achieved Step 6 20 de 88
  • 11. 18/02/2015 11 CLTVALUEBASEDSERVICES©2015 FOCUS ON THE PROCESS, NOT THE TECHNOLOGY 1. SMED should be inexpensive; 2. Well planned; 3. Well practiced/executed; 4. Without Standard Work, there is no continuous improvement. CLTVALUEBASEDSERVICES©2015 SEVEN STEPS TO IMPLEMENTING SMED 1. Observe the current methodology • Watch a full changeover at least once; • Videotape is best. 2. Separate the INTERNAL and EXTERNAL activities. (internal activities are those that can only be performed when the process is stopped). For example, go and get the required tools for the job BEFORE the machine stops.
  • 12. 18/02/2015 12 CLTVALUEBASEDSERVICES©2015 3. Convert (where possible) Internal activities into External ones (pre-heating of tools is a good example of this); 4. Streamline the remaining Internal activities, by simplifying them. Focus on fixings - Shigeo Shingo rightly observed that it's only the last turn of a bolt that tightens it, the rest is just movement. CLTVALUEBASEDSERVICES©2015 Only the final turn on a bolt adds value; The interrupted screw (or interrupted thread) provides one means of clamping and unclamping something quickly. Artillery breeches have been sealed in this manner since the nineteenth century.
  • 13. 18/02/2015 13 CLTVALUEBASEDSERVICES©2015 EXAMPLES OF QUICK FASTENERS Usually a bolt is the most popular fastening tool. But because a bolt fastens at the final turning of the nut can loosen at the first turn, a convenient fastening tool that would allow only a single turning of the nut should be devised. CLTVALUEBASEDSERVICES©2015 5. Streamline the External activities, so that they are of a similar scale to the Internal ones; 6. Document the new procedure and the actions that are yet to be completed; 7. Do it all again: For each iteration of the above process, a 45% improvement in setup times should be expected, so it may take several iterations to cross the ten-minute line.
  • 14. 18/02/2015 14 CLTVALUEBASEDSERVICES©2015 SEPARATE INTERNAL AND EXTERNAL ACTIVITIES All Setup Activities Run III IE E EE Run Externals Internals Run ExternalsPost-setup externals INTERNAL ELEMENTS: Operations that must be performed while the machine/process is stopped EXTERNAL ELEMENTS: Operations that can be performed while the machine/process is running CLTVALUEBASEDSERVICES©2015 CONVERT INTERNALS TO EXTERNALS ACTIVITIES InternalsExternals Run InternalsExternals Run InternalsExternals Run Externals Intern Run Externals Internals Run Eliminate adjustment
  • 15. 18/02/2015 15 CLTVALUEBASEDSERVICES©2015 HOW TO CONVERT EXTERNALS TO INTERNALS ?  Eliminate search-and-find work;  Arrange tools & materials beforehand;  Complete preparation work before starting changeover;  Standardize settings;  Make visual marks vs. trial and error adjustments;  Eliminate trial runs;  Postpone “put away” work… CLTVALUEBASEDSERVICES©2015 STREAMLINE ALL ACTIVITIES Machine running Machine running Last good piece of product A First good piece of product B Total setup Internal and external elements Internal elements Machine running Machine running Last good piece of product A First good piece of product B Total setup External elements External elements Streamlined internal elements Machine running Machine running Last good piece of product A First good piece of product B Total setup Streamlined External elements Streamlined External elements BEFORE AFTER CHANGE OVER STREAM LINE 30 de 88
  • 16. 18/02/2015 16 CLTVALUEBASEDSERVICES©2015 STREAMLINE INTERNAL PROCESS  Create parallel steps – completed at the same time  Reduce complexity and eliminate waste  Use functional fixtures and jigs  One motion fasteners  Levered or one-turn fasteners  Interlocking wedge or slot  Eliminate adjustments  Use angle and flat  Use preset pins, guides, notches etc.  Eliminate need to leave the machine  Use POUS and Mizu… STREAMLINE EXTERNAL PROCESS  Adopt functional standards  Visual factory locations for tools  Color coding  Standard set ups  Checklists CLTVALUEBASEDSERVICES©2015 •Document who will do what and when •Practice quick changeover (QCO) before doing it CREATE NEW PROCESS DOCUMENTINTERNAL&EXTERNALPROCEDURES Run pilot of new process: • document steps of new process • time steps of new process • document improvement opportunities • videotape and look for additional opportunities TEST NEW PROCESS •Make adjustments, as needed •Re-test, if necessary • Create new work sheets that include all the steps of the new process • Get all needed approvals • Train all workers • Post the standardized work sheets (STW) DOCUMENT NEW PROCESSES
  • 18. 18/02/2015 18 CLTVALUEBASEDSERVICES©2015 For example: • A slide clamp reduced the time required to load and unload parts to fixture. • 2 hold-down clamps eliminated the need to tape parts during a glue-up operation. SOME IDEAS CLTVALUEBASEDSERVICES©2015 MANUFACTURING SMED EXAMPLES Modified bolts, tighten in few turns Reduce options, improve standards (less time, less errors, less tools!) SOMEIDEAS
  • 19. 18/02/2015 19 CLTVALUEBASEDSERVICES©2015 SOMEIDEAS CLTVALUEBASEDSERVICES©2015 If the mountain will not come to Mahomet, Mahomet must go to the mountain. B E F O R E A F T E R SOMEIDEAS
  • 22. 18/02/2015 22 CLTVALUEBASEDSERVICES©2015 SOME IDEAS CLTVALUEBASEDSERVICES©2015 PARALLEL OPERATIONS Eg.: two operators performing operations in the front and rear of the machine
  • 23. 18/02/2015 23 CLTVALUEBASEDSERVICES©2015 LOOK FOR… 1. Look for opportunities to eliminate waste in your changeovers, then go after them – use the A3 template provided 2. Shortages, mistakes, inadequate placement of needed equipment. Can be avoided by using check tables, especially visual ones, and setup on an intermediary jig; 3. Inadequate or incomplete repairs to equipment; 4. Optimization for least work as opposed to least delay; CLTVALUEBASEDSERVICES©2015 5. Unheated molds which require several wasted 'tests' before they will be at the temperature to work; 6. Equipment using slow, precise adjustments for the large coarse part of adjustment; 7. Lack of visual lines or benchmarks for part placement on the equipment; 8. Forcing a changeover between different raw materials when a continuous feed, or near equivalent, is possible; 9. Lack of functional standardization, that is standardization of only the parts necessary for setup, eg. all bolts use same size spanner, die grip points are in the same place on all dies;
  • 24. 18/02/2015 24 CLTVALUEBASEDSERVICES©2015 10. Much operator movement around the equipment during setup; 11. More attachment points than actually required for the forces to be constrained; 12. Attachment points that take more than one turn to fasten; 13. Any adjustments after initial setup; 14. Any use of experts during setup; 15. Any adjustments of assisting tools such as guides or switches. CLTVALUEBASEDSERVICES©2015 THE VISUAL WORKPLACE Visual utensil holder encourages housekeeping A “3-minute service” clock reminds employees of the goal
  • 25. 18/02/2015 25 CLTVALUEBASEDSERVICES©2015 THE VISUAL WORKPLACE Visual signals at each room notify support personnel Andon Patient/machine waiting Doctor/maintenance in room Room Clear Machine working properly CLTVALUEBASEDSERVICES©2015 USING COLOUR CODES Different colours for different family parts… Different colors marked on the dies as well as on their storage locations. 50 de 88
  • 26. 18/02/2015 26 CLTVALUEBASEDSERVICES©2015 part mounting fixtures that are all standardized and colour coded for a family of parts to be machined The fixtures are so designed that all the same tools are used and their zero positions are also same for the entire family of parts. And, these fixtures are held by a hydraulic chuck. CLTVALUEBASEDSERVICES©2015 Todas as ferramentas de corte e as posições finais de corte também estão padronizadas This picture shows the chuck, the fixture and a part in it.
  • 27. 18/02/2015 27 CLTVALUEBASEDSERVICES©2015 THE IMPORTANCE OF ORGANIZATION An example of unorganized tool drawer TELL ME WHAT DO YOU WANT? and an organized tool drawer CLTVALUEBASEDSERVICES©2015 BEFORE AFTER
  • 28. 18/02/2015 28 CLTVALUEBASEDSERVICES©2015 You may also talk about “shadow boards” where the outlines or the shapes of the tools are painted on the board, which makes sure that after a tools is used it is replaced in the same location. CLTVALUEBASEDSERVICES©2015 This assembly bench has colour coordinated bins, and power tools.
  • 29. 18/02/2015 29 CLTVALUEBASEDSERVICES©2015 An example of gages placed in an organized manner. CLTVALUEBASEDSERVICES©2015
  • 30. 18/02/2015 30 CLTVALUEBASEDSERVICES©2015 ANALYSE THE ENVIRONMENT • Improve access to tools and fixtures; • Consider the use of 5S methodology to reduce time to identify, find and storage materials, components, tools and fixtures; • Consider the establishment of a Setup Team (involving operators from quality, maintenance and production); • Consider involving process engineering dept to change machines… • Create some “pressure” on the setup team using a countdown timer (define a target setup time and reword improvements as long quality and safety are not compromised); • There many free apps related with countdown timers… http://www.online-stopwatch.com/countdown-timer/ CLTVALUEBASEDSERVICES©2015 IDEAS FOR IMPROVEMENT Setup sheet Prints Special instructions Gauges Set blocks Stop gauges Special tools SETUP TOOL CARTS 60 de 88
  • 31. 18/02/2015 31 CLTVALUEBASEDSERVICES©2015 SETUP DIE CARTS Documentation Tools Rollers Turntable IDEAS FOR IMPROVEMENT CLTVALUEBASEDSERVICES©2015 Slot address labels Slot address Model Slide value Part Line #Cover Block gauge # ORGANIZE AND STORE IN PROXIMITY IDEAS FOR IMPROVEMENT
  • 33. 18/02/2015 33 CLTVALUEBASEDSERVICES©2015 WHEN SHOULD WE AUTOMATE?  Criterion 1: The operation has already been dramatically simplified;  Criterion 2: Begin with semi automation to achieve 80% benefit at 20% cost;  Criterion 3: The automation is cost-effective. CLTVALUEBASEDSERVICES©2015
  • 34. 18/02/2015 34 CLTVALUEBASEDSERVICES©2015 COST OF CHANGEOVER Consider this example: • A project proposes to reduce changeover time by 10 minutes/day by purchasing an additional set of change parts at a cost of €50k. • This will allow externalization of parts cleaning; • Management is likely to look at this, think “It’s only 10 minutes!?,” and disallow the expenditure; • Ten minutes does not seem very significant… • But, If the cost of changeover downtime has been established as €12k/hour, this means that the additional set of parts will produce a savings of €2k/day (or €500k/year, based on 250 days/year); • Management will likely be thrilled at the one-month payback. CLTVALUEBASEDSERVICES©2015 • 10 min/day may not seam an impressive figure, but you express it in annual terms and it becomes quite impressive! • It is more than on shift week of lost production per year (10 min × 250 days/60 minutes/hour = 41.6 hours). • Is gaining an additional week of production capacity worth €50k? • This is an easier decision for management to make than deciding whether 10 minutes is worth €50k. • Changeover costs take two forms: Tangible and Intangible. • Examples of tangible costs: The cost of labour involved in changeover, materials, energy, etc… • Intangible costs are difficult or impossible to calculate. That does not mean they are less important than tangible costs. In some cases they may be even more important in terms of amount and impact on the business.
  • 35. 18/02/2015 35 CLTVALUEBASEDSERVICES©2015 TANGIBLE COSTS LOST PRODUCTION (this is the most obvious cost, anyone can see it) • Assume a per-unit contribution (margin) of €1 at the end of the line. If the line speed is 200 parts/min, the lost contribution will be €200/min or €12k/hour; • This is a bit simplistic and assumes that a plant is running at full capacity… • A plant that is running at significantly less than full capacity may not even have enough work to fill the normal work day. In this case, lost production time from changeover has essentially no production direct cost... • Even so, it is still not totally free. If lines are being underutilized, freeing up the teammates with reduced changeover will allow them to perform other tasks such as cleaning, maintenance, training, and particularly developing and implementing improvements. CLTVALUEBASEDSERVICES©2015 LOST CAPACITY • It is the other side of the coin. If a plant is running at 100% capacity, when the marketplace demands more product, the only way to supply it is by purchasing additional production equipment, hiring additional people, and possibly constructing additional manufacturing space... Assume a plant that is operating 24/7/365 and is its capacity is completely taken. Line speed is 200 PPM with 30% downtime for setup. • Total annual production is 200 × 60 × 24 × 365 × .70 = 73,584,000 products/year • If changeover downtime can be cut in half (usually a reasonable goal); • The total output increases to (60 × 24 × 365 × .85) 89,352,000 PPY; • This is an increased output of 15,768,000 PPY… 70 de 88
  • 36. 18/02/2015 36 CLTVALUEBASEDSERVICES©2015 IMPACT ON INVENTORIES • One popular way to reduce total changeover cost is to reduce the number of setups by increasing lot size. But this is not good… • Inventory is very expensive… • One way to think of it is as an interest charge, typically around 30%, based on the average value of the inventory. • A plant holding €5M worth of inventory will pay about €1,5M/year in carrying or holding costs; • Reducing average inventory levels will reduce those annual inventory carrying costs. CLTVALUEBASEDSERVICES©2015 Consider this: • One company needs to produce 200k/week units of one product; • It can produce a single large lot. If shipped uniformly over 5 days, it will result in an average inventory level of 100k units; • If the value of each unit is €2, the total annual inventory carrying cost will be €60k. • The second option is to produce five production lots of 40k units each; • The total production is the same. All units are shipped uniformly over 5 days. • Average inventory is 20k units and annual inventory cost is €12k. • This represents an annual savings of €48k/year. Multiple products will multiply the savings… • Savings from reduced inventory is offset by the increased costs of more frequent changeover.
  • 37. 18/02/2015 37 CLTVALUEBASEDSERVICES©2015 LABOUR COSTS • After measuring the total time spent by direct and indirect labour, and establishing their rates, it is easy to determine the labour cost of changeover time. Example: • Assume that 2 mechanics at €30/hour plus 2 operators at €20/hour spend 2 hours on the floor working on the changeover. • They are supported by a clerk who spends 30 min on documentation at €20/hour, 1 washroom person who spends 1 hour at €20/hour, a warehouse worker who spends 1 hour at €20/hour, and a quality inspector who spends 15 minutes at €20/hour approving the line for production. • Total labour cost of the changeover is as follows: €120 + €80 + €10 + €20 + €20 + €5 = €255 CLTVALUEBASEDSERVICES©2015 PRODUCT AND MATERIAL LOSSES • Product and material is lost at all stages of changeover. • At the end of the run, product will remain on the line that may need to be discarded as part of cleanup; • During setup, it is frequently necessary to use product and materials for testing or setting. In most cases this is discarded; • Once the process is restarted, there is the setup period where there will be higher-than-normal rejects; • The cost of materials used in changeover can be significant. • One of the focuses of lean changeover must be to reduce these losses.
  • 38. 18/02/2015 38 CLTVALUEBASEDSERVICES©2015 INTANGIBLE COSTS • Intangible costs can be hard to see and even more difficult to measure; • That does not mean that they are not significant. They are, and must be recognized and addressed. Examples of intangible costs: • Response to the customer; • Capacity utilization; • Quality; • Stress on People, Machines, and Systems; • Reduced Innovation. CLTVALUEBASEDSERVICES©2015 THE STANDARD OPERATING PROCEDURE
  • 39. 18/02/2015 39 CLTVALUEBASEDSERVICES©2015 THE STANDARD OPERATING PROCEDURE • Imagine an orchestra with no conductor and no musical score… it would be pure cacophony… • The SOP is the score by which all participants know what they are to do, how, and when. The supervisor is the conductor who keeps them on task; • A well-trained changeover team may not need much instruction and supervision. They always need some. It is only by this means that proper and efficient changeovers can be performed; • SOP’s can be presented in a variety of formats: textual, pictorial, schematic, flow charts, or a combination. • The goal of any SOP is to properly guide operators through the changeover; • SOPs are sometimes confused with checklists, but they are two different things… CLTVALUEBASEDSERVICES©2015 THE SOP TEMPLATE 1. PURPOSE 2. GENERAL INFORMATION 2.1 Scope 2.2 Safety 2.3 Responsibility 3. MATERIALS 4. TOOLS 5. DEFINITIONS 6. PROCEDURE 6.1 6.1.1 6.1.1.1 7. DOCUMENTATION 8. ATTACHMENTS 8.1 Machine settings 8.2 Machine layout drawings 9. REFERENCES 10. CHECKLIST Title SOP No Written by: Revi. No Approved by: Date Structure of this SOP 1. PURPOSE 2. GENERAL INFORMATION 3. MATERIALS 4. TOOLS 5. DEFINITIONS 6. PROCEDURE 7. DOCUMENTATION 8. ATTACHMENTS 9. REFERENCES 10. CHECKLIST João Paulo Pinto ©, 2015 STANDARD OPERATING PROCEDURE FOR LEAN CHANGEOVER CHALLENGE: Let’s do the SOP for our machine, this template is just a suggestion, it can be improved…
  • 40. 18/02/2015 40 THE SMED FORMS CLTVALUEBASEDSERVICES©2015 CLTVALUEBASED SERVICES 2015 © S E T U P - M O T I O N D I A G R A M (aka the "SPAGHETTI DIAGRAM") DEPARTMENTEQUIPMENT TOTAL DISTANCE TRAVELLED Record each step using a camera… 80 de 88
  • 41. 18/02/2015 41 CLTVALUEBASEDSERVICES©2015 Equip Process Date    D s Internal External 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 Sum Suggestion: determine the key racios CLTVALUEBASED SERVICES 2015 © No O B S E R V A T I O N F O R M - A N A L Y S I S O F S E T U P T A S K S Classification of Tasks Duration Notes and AnalysisDescription of the Setup Task(including necessary tools) CLTVALUEBASEDSERVICES©2015 Theme Team Date 10/2/2015 members Company Name Here 1. PROBLEM/OPPORTUNITY DEFINITION 2. OBJECTIVE - TARGET CONDICTION 3. CAUSE AND EFFECT ANALYSIS João Paulo Pinto ©, 2015 A3 REPORT 4. PLANNING AND ACTIONS 5. RESULTS 6. CHECK AND FOLLOW-UP 7. REWARD AND SHARE THE RESULTS 1 2 3 4 5 6
  • 42. 18/02/2015 42 CLTVALUEBASEDSERVICES©2015 3W Theme Sponsor Date Team Leader Observations No What When Who Objective or Target 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Team members: Notes: JOAOPAULOPINTO© 2015 A3. 3W PLANNING SHEET Your Company Name here PLANNING HORIZON (up to 10 hours/days/weeks or months) 10/02/2015 CLTVALUEBASEDSERVICES©2015 Setupskills Key: CLT VALUEBASED SERVICES 2015 © 100% 75% 50% 25% 0% S E T U P S K I L L S M A T R I Z Operator Name
  • 43. 18/02/2015 43 CLTVALUEBASEDSERVICES©2015 Product, service or process Description Date Issued by: Op Description Failure mode Effect Cause Occurence Severity Detection NPR Contra-medidas a implementar Occurence Severity Detection NPR 1 0 0 2 0 0 3 0 0 4 0 0 5 0 0 6 0 0 7 0 0 8 0 0 9 0 0 10 0 0 11 0 0 12 0 0 13 0 0 14 0 0 15 0 0 16 0 0 Use a scale from 1 to 10 Use a scale from 1 to 10 João Paulo Pinto © 2015Your Company Name here Project identificationTeam members Copies to: FAILURE MODE AND EFFECT ANALYSIS CLTVALUEBASEDSERVICES©2015 Theme Code Date Leader Observations JOAO PAULO PINTO © 2015Company Name here ANALYSIS OF RESULTS AND LESSONS LEARNT RECOMENDATIONS A3. A F T E R A C T I O N R E P O R T PROJECT'S SUMMARY ANALYSIS OF CRITICAL TASKS 10/02/2015
  • 44. 18/02/2015 44 CLTVALUEBASEDSERVICES©2015 SOME KEY REFERENCES… Development Team PP, 1996. Quick changeover for operators: the SMED System. Productivity Press. HENRY JH, 2013. Achieving lean changeover - putting SMED to work. CRC Press (Taylor & Francis Group). PINTO JP, 2009. Pensamento Lean – a filosofia das organizações vencedoras. Edições Lídel. SHINGO S, 1985. A revolution in Manufacturing: The SMED System. Productivity Press. CLTVALUEBASEDSERVICES©2015 João Paulo Pinto, Eng CLT VALUEBASED SERVICES Lda www.cltservices.net mgt@cltservices.net Av da República, 2491 – 4º piso, sala 41 VN de Gaia – PORTUGAL Telf. (+351) 936.000.079 Fax. (+351) 220.162.407