SMED / Quick Changeover - The Payoff

Senior managers contemplating using the Lean toolin downstream process changeover time after only 2
SMED / Quick Changeover often ask "What's thedays. The streamlining of the process steps would
payoff? After all, the operating guys will be doinggenerate additional savings. These are "drop thru"
almost the same amount of work." To say that issavings that go right to the bottom line much to the joy
skepticism over the benefits of SMED / Quickof accountants and managers.
Changeover is akin to saying an iceberg is just anAn example in the non-manufacturing environment,
oversized ice cube.Healthcare, is in the MRI operations within a hospital.
The act of learning, applying, and retaining the SMED /Most administrations are struggling with how to reduce
Quick Changeover methodology causes a change inwait times (and of course costs) for MRI patients. The
the way a changeover is viewed. This change is anfirst solution they jump to is, to buy more equipment
essential building block of making Lean Managementwhich includes expensive MRI's. This solution, on the
part of the culture of the enterprise. In effect, Leansurface, seems to be appropriate and it is certainly the
becomes part of the company DNA.easiest and fastest - or is it? As you investigate
By having a cross-functional team methodically reviewfurther and begin planning for new equipment you
a changeover and separate work elements intorealize that you need more space, more trained people
internal and external work elements, the understandingto operate the equipment and more supplies - the
of what is really being done in the changeover comesresult is that the initial cost of buying the equipment
to light. The team members "learn to see" thewas only the tip of the iceberg. The real solution should
changeover from a new perspective. A streamlining ofhave been to analyze the entire process from the
the separated work elements aimed at eliminatingtime the patient arrives for their MRI to the point they
non-required steps ensures non-value added waste isleave and determine how much time and activities are
removed.'waste'. When this is done, we find much of the time is
When the remaining elements are arranged in a newclassified as waste and one of the wastes is the time
logical sequence, the resulting time, when the operationto set up in between each patient.
is shut down for changeover, is typically 50% of theWith the use of SMED, the change over time is
pre- SMED time. Technicians don't work harder. Theydrastically reduced and there is an opportunity to put
carry out the external elements either before or aftermore patients through the process without adding
the process is stopped for the changeover. Thestaff, space or equipment and it didn't cost hundreds of
internal elements become the time the process isthousands of dollars.
actually not producing. The reduced changeover fromThe answer to the question "what's the payoff?" is a
the last good piece of the old part to the first goodhealthier bottom line, increased flexibility to meet
piece of the new part is a fraction of the pre - SMEDcustomers ever changing needs, empowered workers
time.doing world class changeovers, less inventory and its
A recent SMED Quick Changeover workshop resultedassociated problems, less floor space due to less
in the elimination of an hour of machine downtime perproduct or equipment on the floor, and "found" capacity
shift for multiple changeovers for the highly automatedresulting from a process operating instead of being
silk screening of CD labels. The savings weredown for non-value added changeovers.
annualized as "millions in the first year". During theIn today's world, the pressure is on organizations and
Enterprise Value Stream MappingTM (EVSM)TM ofbusinesses to provide products and services (such as
their "order entry to product shipped" process, thehealthcare) faster and better but at the same cost or
client recognized a need to reduce changeover time inlower. In order to meet the clients and customers
order to provide more machine capacity with reducedchallenging expectations and desire for more, faster
inventories to meet customer demand. The SMEDand better, you must consider proper implementation
workshop was a Kaizen event which addressed thatof every tool that can improve your processes and
competitive requirement by utilizing Lean techniques.give you an advantage over your competitors. SMED
Similarly a SMED / Quick Changeover workshopQuick Changeover is one of those tools that can give
involving a plastic extrusion process resulted in a 66%you and your group a much needed advantage and
reduction in die changeover time and a 27% reductionthe results of implementing it are immediate.