Why Implement SMED (Single Minute Exchange of Die) Even if Changeovers Aren't Your Biggest Constraint?

How 'bout A Million Reasons...

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Very often Lean manufacturing tools used in isolation only serve to embrace a culture of local-optimization (optimizing the parts rather than the whole.) In other words, you can optimize operation "C" to the point that it is running great, producing terrific numbers, and really looks fantastic, but if operation "D" is your constraint, all your efforts on operation "C" may not have much of an impact on your overall throughput or profitability.

If you have limited resources, and can only focus your Kaizen efforts on one issue at a time, I'd recommend you focus on operation "D" in the example above, until it has been resolved, or is no longer your biggest constraint.

Sometimes, however, you can spend some Lean improvement time on non-constraint processes and realize very substantial, even incredible, and immediate bottom-line gains. SMED is one of the Lean tools that virtually always pays for itself many times over. Allow me illustrate with a brief case study.

SMED Case Study:
A medical device manufacturer (Company "X") can sell every product it can possibly produce. The more their lines run, the more money they make; it's pretty much that simple. Changeovers take time, and therefore reduce the run-time of the lines. In reality, however, changeovers are not their biggest constraint when you look at the company as a whole, (re-read your TOC materials on "Policy Constraints;") but opportunity for improvements and the potential for additional run-time was obvious.

To address line and product changeovers we formed a "Kaizen Team" and took a closer look at the situation in an "up-close and personal" way. I've listed some of the results from our efforts below. We'll let the math speak for itself.