smed

SMED: Single-Minute Exchange of Die

Business / By / November 11, 2023

The SMED (single minute exchange of die) method is a lean production framework to reduce waste and increase production efficiency. The SMED method is a framework for reducing the time associated with completing an equipment changeover.

AspectDescription
IntroductionSingle-Minute Exchange of Die (SMED) is a lean manufacturing technique aimed at reducing the time it takes to change or set up equipment between producing different products. The goal is to minimize downtime and increase manufacturing flexibility, enabling shorter production runs, reduced inventory, and improved overall efficiency. SMED is a critical element of lean manufacturing principles.
Key Concepts– Quick Changeover: SMED focuses on achieving quick and efficient changeovers, ideally within a single minute or as rapidly as possible.
– Internal vs. External Setup: SMED distinguishes between internal setup tasks (performed while the equipment is stopped) and external setup tasks (completed while the equipment is running).
– Standardization: Standardizing setup procedures and using visual controls can streamline changeover processes.
SMED StepsSMED typically involves the following steps:
– Separate Internal and External Setup: Identify and separate tasks that can be performed while the equipment is running (external) from those requiring machine stoppage (internal).
– Convert Internal to External: Evaluate internal setup tasks and find ways to convert them into external setup tasks, reducing machine downtime.
– Standardize Procedures: Develop standardized setup procedures and checklists for both internal and external tasks.
– Parallelize Activities: When possible, conduct setup tasks in parallel rather than sequentially.
– Use Visual Controls: Implement visual cues and indicators to guide operators through setup steps.
ApplicationsSMED is applied in various manufacturing industries, including:
– Automotive: Automotive manufacturers use SMED to reduce changeover times for different vehicle models and configurations.
– Pharmaceuticals: Pharmaceutical companies benefit from faster changeovers between production runs of different medications.
– Food and Beverage: Food processing plants use SMED to switch between product lines efficiently.
– Aerospace: Aerospace manufacturers use SMED to optimize the setup of machining and assembly equipment.
Challenges and ConsiderationsChallenges in implementing SMED include:
– Resistance to Change: Resistance from operators and teams accustomed to traditional setup methods.
– Complex Machinery: Some equipment setups may be inherently complex, making quick changeovers more challenging.
– Initial Investment: Implementing SMED may require initial investment in training and setup improvements.
Future TrendsFuture trends related to SMED may include:
– Industry 4.0 Integration: Integrating SMED principles with Industry 4.0 technologies, such as IoT and predictive maintenance, to further optimize changeover processes.
– AI and Machine Learning: Leveraging AI and machine learning for predictive setup optimization and real-time monitoring.
– Remote Setup: Exploring remote setup capabilities, where some changeover tasks can be performed remotely or automatically.
ConclusionSingle-Minute Exchange of Die (SMED) is a lean manufacturing technique aimed at reducing equipment setup times and improving manufacturing flexibility. It plays a crucial role in lean principles, enabling shorter production runs, reduced inventory, and increased efficiency. While implementing SMED may present challenges, the benefits of reduced downtime and enhanced responsiveness to customer demand make it a valuable practice in manufacturing.

Understanding the SMED method

The “single-minute” aspect of the method refers to the goal of reducing equipment changeover time by any number in the single digits. That is, in any time under ten minutes.

Like similar lean process improvement strategies, the SMED method originated at Toyota in the 1950s after inefficiencies were identified in the process of molding body parts.

When different parts of the car body needed to be molded, it took between two and eight hours to load the necessary tools into the equipment.

This laborious process combined with the fact that Toyota had to purchase extra land to store the vehicles caused a lot of waste. 

To speed up the process, Toyota made modifications to the machinery and vehicle components and also re-ordered the steps in the molding process. By the 1970s, the equipment changeover time was occurring in a matter of minutes.

Today, the SMED method can be used in any industry or situation requiring a changeover of product or equipment. The most commonly mentioned examples are in software development and motor racing where pit crews need to change tires and drivers as quickly as possible.

The two principles of the SMED method

Generally speaking, the SMED method incorporates both internal and external setup components.

1 – External 

External components are process steps or parts that can be replaced while a product or piece of equipment is still in operation. 

For external components, the primary focus is preparation. This means the tools, materials, or other important resources are available before the changeover takes place.

A Formula 1 pit crew, for example, does not search for new tires once the driver has pulled into the pit lane. Instead, they are pre-arranged on the tarmac at precisely the point where the driver will stop. 

2 – Internal 

Internal components require the product or piece of equipment to be non-operational before the changeover can take place. One example of an internal component is the molding equipment Toyota made more efficient in the 1970s.

Note that the goal for any team using the SMED method is to transform internal components into external components wherever possible.

Where is the SMED method most effective?

The SMED method is most effective in the following situations:

  • The process is performed frequently.
  • The process is a bottleneck whose resolution will have immediate and significant benefits.
  • Employees involved in the changeover are adequately trained and have bought into the change itself.
  • The duration of the changeover is long enough that an appreciable improvement is possible, and
  • There has been historical variance in past changeover times. For example, if one year the change over time was 7 hours and the next it had reduced to 45 minutes.

Case Studies

Manufacturing Company (Business):

  • External Components: Streamline the setup of production lines by pre-staging materials, tools, and equipment required for different product runs, reducing downtime between manufacturing processes.
  • Internal Components: Modify machinery to allow quick tool changes, such as implementing standardized connectors or interchangeable components, ensuring faster changeovers.

E-commerce Website (Technology):

  • External Components: Pre-load product images, descriptions, and pricing for various sales events or promotions, minimizing the time required to switch between different online sales campaigns.
  • Internal Components: Implement automated content deployment tools to swiftly update web content, including banners, product listings, and checkout processes during promotional events.

Cloud Service Provider (Technology):

  • External Components: Have pre-configured server templates and network settings ready to deploy for different client requirements, reducing provisioning time for new cloud instances.
  • Internal Components: Optimize virtualization technologies and orchestration tools to allow for rapid scaling and reconfiguration of cloud resources without service interruptions.

Telecommunications Service Provider (Technology):

  • External Components: Pre-configure network equipment profiles and service packages for different customers, enabling quicker activation of new subscriber services.
  • Internal Components: Implement software-defined networking (SDN) solutions to dynamically reconfigure network routes and services in real-time, reducing downtime during network changes.

Retail Chain (Business and Technology):

  • External Components: Prepare point-of-sale (POS) systems with updated product information, pricing, and promotional offers in advance, minimizing the time needed for storewide updates.
  • Internal Components: Develop and implement a centralized inventory management system that allows real-time stock adjustments and replenishment, ensuring efficient inventory turnover during sales events.

Digital Marketing Agency (Business and Technology):

  • External Components: Create standardized campaign templates, ad copies, and creative assets to quickly launch online advertising campaigns for different clients.
  • Internal Components: Utilize marketing automation tools to manage and optimize digital advertising efforts seamlessly, reducing the time needed for campaign setup and adjustments.

Key takeaways

  • The SMED method is a framework for reducing the time associated with completing an equipment changeover.
  • The SMED method incorporates internal or external setup components. External components are process steps that can be altered while the process itself is still running, while internal components are those where the process must be halted. The goal for any team is to have more external components and fewer internal components.
  • The SMED method is effective in situations where processes are performed repeatedly or for bottlenecks whose resolution will result in process efficiency gains. The method is also useful when there has been significant variance in changeover time.

Key Highlights

  • Understanding the SMED Method: The SMED method is a lean production technique aimed at reducing waste and increasing production efficiency by minimizing equipment changeover time. The goal is to achieve changeovers in under ten minutes, thus the term “single-minute.”
  • Origin and Application: Originating at Toyota in the 1950s, the SMED method was initially used to improve the process of molding body parts. Toyota’s modifications and reordering of steps significantly reduced changeover times from hours to minutes. Today, the SMED method is applicable in various industries requiring quick changeovers, such as software development and motorsports pit stops.
  • Two Principles of the SMED Method:
    1. External Components: These are process steps or parts that can be altered while the equipment or process is still operational. Focus is on preparation, ensuring tools, materials, and resources are ready before the changeover.
    2. Internal Components: These require the equipment or process to be halted for the changeover. The goal is to transform internal components into external ones to minimize downtime.
  • Effectiveness of the SMED Method:
    • It is most effective when the process occurs frequently.
    • Particularly valuable for resolving bottlenecks with immediate benefits.
    • Requires well-trained employees who support the change.
    • Applicable when changeover times are long enough for appreciable improvements.
    • Works well when historical variance in changeover times exists.

Connected Agile & Lean Frameworks

AIOps

aiops
AIOps is the application of artificial intelligence to IT operations. It has become particularly useful for modern IT management in hybridized, distributed, and dynamic environments. AIOps has become a key operational component of modern digital-based organizations, built around software and algorithms.

AgileSHIFT

AgileSHIFT
AgileSHIFT is a framework that prepares individuals for transformational change by creating a culture of agility.

Agile Methodology

agile-methodology
Agile started as a lightweight development method compared to heavyweight software development, which is the core paradigm of the previous decades of software development. By 2001 the Manifesto for Agile Software Development was born as a set of principles that defined the new paradigm for software development as a continuous iteration. This would also influence the way of doing business.

Agile Program Management

agile-program-management
Agile Program Management is a means of managing, planning, and coordinating interrelated work in such a way that value delivery is emphasized for all key stakeholders. Agile Program Management (AgilePgM) is a disciplined yet flexible agile approach to managing transformational change within an organization.

Agile Project Management

agile-project-management
Agile project management (APM) is a strategy that breaks large projects into smaller, more manageable tasks. In the APM methodology, each project is completed in small sections – often referred to as iterations. Each iteration is completed according to its project life cycle, beginning with the initial design and progressing to testing and then quality assurance.

Agile Modeling

agile-modeling
Agile Modeling (AM) is a methodology for modeling and documenting software-based systems. Agile Modeling is critical to the rapid and continuous delivery of software. It is a collection of values, principles, and practices that guide effective, lightweight software modeling.

Agile Business Analysis

agile-business-analysis
Agile Business Analysis (AgileBA) is certification in the form of guidance and training for business analysts seeking to work in agile environments. To support this shift, AgileBA also helps the business analyst relate Agile projects to a wider organizational mission or strategy. To ensure that analysts have the necessary skills and expertise, AgileBA certification was developed.

Agile Leadership

agile-leadership
Agile leadership is the embodiment of agile manifesto principles by a manager or management team. Agile leadership impacts two important levels of a business. The structural level defines the roles, responsibilities, and key performance indicators. The behavioral level describes the actions leaders exhibit to others based on agile principles. 

Andon System

andon-system
The andon system alerts managerial, maintenance, or other staff of a production process problem. The alert itself can be activated manually with a button or pull cord, but it can also be activated automatically by production equipment. Most Andon boards utilize three colored lights similar to a traffic signal: green (no errors), yellow or amber (problem identified, or quality check needed), and red (production stopped due to unidentified issue).

Bimodal Portfolio Management

bimodal-portfolio-management
Bimodal Portfolio Management (BimodalPfM) helps an organization manage both agile and traditional portfolios concurrently. Bimodal Portfolio Management – sometimes referred to as bimodal development – was coined by research and advisory company Gartner. The firm argued that many agile organizations still needed to run some aspects of their operations using traditional delivery models.

Business Innovation Matrix

business-innovation
Business innovation is about creating new opportunities for an organization to reinvent its core offerings, revenue streams, and enhance the value proposition for existing or new customers, thus renewing its whole business model. Business innovation springs by understanding the structure of the market, thus adapting or anticipating those changes.

Business Model Innovation

business-model-innovation
Business model innovation is about increasing the success of an organization with existing products and technologies by crafting a compelling value proposition able to propel a new business model to scale up customers and create a lasting competitive advantage. And it all starts by mastering the key customers.

Constructive Disruption

constructive-disruption
A consumer brand company like Procter & Gamble (P&G) defines “Constructive Disruption” as: a willingness to change, adapt, and create new trends and technologies that will shape our industry for the future. According to P&G, it moves around four pillars: lean innovation, brand building, supply chain, and digitalization & data analytics.

Continuous Innovation

continuous-innovation
That is a process that requires a continuous feedback loop to develop a valuable product and build a viable business model. Continuous innovation is a mindset where products and services are designed and delivered to tune them around the customers’ problem and not the technical solution of its founders.

Design Sprint

design-sprint
A design sprint is a proven five-day process where critical business questions are answered through speedy design and prototyping, focusing on the end-user. A design sprint starts with a weekly challenge that should finish with a prototype, test at the end, and therefore a lesson learned to be iterated.

Design Thinking

design-thinking
Tim Brown, Executive Chair of IDEO, defined design thinking as “a human-centered approach to innovation that draws from the designer’s toolkit to integrate the needs of people, the possibilities of technology, and the requirements for business success.” Therefore, desirability, feasibility, and viability are balanced to solve critical problems.

DevOps

devops-engineering
DevOps refers to a series of practices performed to perform automated software development processes. It is a conjugation of the term “development” and “operations” to emphasize how functions integrate across IT teams. DevOps strategies promote seamless building, testing, and deployment of products. It aims to bridge a gap between development and operations teams to streamline the development altogether.

Dual Track Agile

dual-track-agile
Product discovery is a critical part of agile methodologies, as its aim is to ensure that products customers love are built. Product discovery involves learning through a raft of methods, including design thinking, lean start-up, and A/B testing to name a few. Dual Track Agile is an agile methodology containing two separate tracks: the “discovery” track and the “delivery” track.

eXtreme Programming

extreme-programming
eXtreme Programming was developed in the late 1990s by Ken Beck, Ron Jeffries, and Ward Cunningham. During this time, the trio was working on the Chrysler Comprehensive Compensation System (C3) to help manage the company payroll system. eXtreme Programming (XP) is a software development methodology. It is designed to improve software quality and the ability of software to adapt to changing customer needs.

Feature-Driven Development

feature-driven-development
Feature-Driven Development is a pragmatic software process that is client and architecture-centric. Feature-Driven Development (FDD) is an agile software development model that organizes workflow according to which features need to be developed next.

Gemba Walk

gemba-walk
A Gemba Walk is a fundamental component of lean management. It describes the personal observation of work to learn more about it. Gemba is a Japanese word that loosely translates as “the real place”, or in business, “the place where value is created”. The Gemba Walk as a concept was created by Taiichi Ohno, the father of the Toyota Production System of lean manufacturing. Ohno wanted to encourage management executives to leave their offices and see where the real work happened. This, he hoped, would build relationships between employees with vastly different skillsets and build trust.

GIST Planning

gist-planning
GIST Planning is a relatively easy and lightweight agile approach to product planning that favors autonomous working. GIST Planning is a lean and agile methodology that was created by former Google product manager Itamar Gilad. GIST Planning seeks to address this situation by creating lightweight plans that are responsive and adaptable to change. GIST Planning also improves team velocity, autonomy, and alignment by reducing the pervasive influence of management. It consists of four blocks: goals, ideas, step-projects, and tasks.

ICE Scoring

ice-scoring-model
The ICE Scoring Model is an agile methodology that prioritizes features using data according to three components: impact, confidence, and ease of implementation. The ICE Scoring Model was initially created by author and growth expert Sean Ellis to help companies expand. Today, the model is broadly used to prioritize projects, features, initiatives, and rollouts. It is ideally suited for early-stage product development where there is a continuous flow of ideas and momentum must be maintained.

Innovation Funnel

innovation-funnel
An innovation funnel is a tool or process ensuring only the best ideas are executed. In a metaphorical sense, the funnel screens innovative ideas for viability so that only the best products, processes, or business models are launched to the market. An innovation funnel provides a framework for the screening and testing of innovative ideas for viability.

Innovation Matrix

types-of-innovation
According to how well defined is the problem and how well defined the domain, we have four main types of innovations: basic research (problem and domain or not well defined); breakthrough innovation (domain is not well defined, the problem is well defined); sustaining innovation (both problem and domain are well defined); and disruptive innovation (domain is well defined, the problem is not well defined).

Innovation Theory

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The innovation loop is a methodology/framework derived from the Bell Labs, which produced innovation at scale throughout the 20th century. They learned how to leverage a hybrid innovation management model based on science, invention, engineering, and manufacturing at scale. By leveraging individual genius, creativity, and small/large groups.

Lean vs. Agile

lean-methodology-vs-agile
The Agile methodology has been primarily thought of for software development (and other business disciplines have also adopted it). Lean thinking is a process improvement technique where teams prioritize the value streams to improve it continuously. Both methodologies look at the customer as the key driver to improvement and waste reduction. Both methodologies look at improvement as something continuous.

Lean Startup

startup-company
A startup company is a high-tech business that tries to build a scalable business model in tech-driven industries. A startup company usually follows a lean methodology, where continuous innovation, driven by built-in viral loops is the rule. Thus, driving growth and building network effects as a consequence of this strategy.

Minimum Viable Product

minimum-viable-product
As pointed out by Eric Ries, a minimum viable product is that version of a new product which allows a team to collect the maximum amount of validated learning about customers with the least effort through a cycle of build, measure, learn; that is the foundation of the lean startup methodology.

Leaner MVP

leaner-mvp
A leaner MVP is the evolution of the MPV approach. Where the market risk is validated before anything else

Kanban

kanban
Kanban is a lean manufacturing framework first developed by Toyota in the late 1940s. The Kanban framework is a means of visualizing work as it moves through identifying potential bottlenecks. It does that through a process called just-in-time (JIT) manufacturing to optimize engineering processes, speed up manufacturing products, and improve the go-to-market strategy.

Jidoka

jidoka
Jidoka was first used in 1896 by Sakichi Toyoda, who invented a textile loom that would stop automatically when it encountered a defective thread. Jidoka is a Japanese term used in lean manufacturing. The term describes a scenario where machines cease operating without human intervention when a problem or defect is discovered.

PDCA Cycle

pdca-cycle
The PDCA (Plan-Do-Check-Act) cycle was first proposed by American physicist and engineer Walter A. Shewhart in the 1920s. The PDCA cycle is a continuous process and product improvement method and an essential component of the lean manufacturing philosophy.

Rational Unified Process

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Rational unified process (RUP) is an agile software development methodology that breaks the project life cycle down into four distinct phases.

Rapid Application Development

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RAD was first introduced by author and consultant James Martin in 1991. Martin recognized and then took advantage of the endless malleability of software in designing development models. Rapid Application Development (RAD) is a methodology focusing on delivering rapidly through continuous feedback and frequent iterations.

Retrospective Analysis

retrospective-analysis
Retrospective analyses are held after a project to determine what worked well and what did not. They are also conducted at the end of an iteration in Agile project management. Agile practitioners call these meetings retrospectives or retros. They are an effective way to check the pulse of a project team, reflect on the work performed to date, and reach a consensus on how to tackle the next sprint cycle. These are the five stages of a retrospective analysis for effective Agile project management: set the stage, gather the data, generate insights, decide on the next steps, and close the retrospective.

Scaled Agile

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Scaled Agile Lean Development (ScALeD) helps businesses discover a balanced approach to agile transition and scaling questions. The ScALed approach helps businesses successfully respond to change. Inspired by a combination of lean and agile values, ScALed is practitioner-based and can be completed through various agile frameworks and practices.

SMED

smed
The SMED (single minute exchange of die) method is a lean production framework to reduce waste and increase production efficiency. The SMED method is a framework for reducing the time associated with completing an equipment changeover.

Spotify Model

spotify-model
The Spotify Model is an autonomous approach to scaling agile, focusing on culture communication, accountability, and quality. The Spotify model was first recognized in 2012 after Henrik Kniberg, and Anders Ivarsson released a white paper detailing how streaming company Spotify approached agility. Therefore, the Spotify model represents an evolution of agile.

Test-Driven Development

test-driven-development
As the name suggests, TDD is a test-driven technique for delivering high-quality software rapidly and sustainably. It is an iterative approach based on the idea that a failing test should be written before any code for a feature or function is written. Test-Driven Development (TDD) is an approach to software development that relies on very short development cycles.

Timeboxing

timeboxing
Timeboxing is a simple yet powerful time-management technique for improving productivity. Timeboxing describes the process of proactively scheduling a block of time to spend on a task in the future. It was first described by author James Martin in a book about agile software development.

Scrum

what-is-scrum
Scrum is a methodology co-created by Ken Schwaber and Jeff Sutherland for effective team collaboration on complex products. Scrum was primarily thought for software development projects to deliver new software capability every 2-4 weeks. It is a sub-group of agile also used in project management to improve startups’ productivity.

Scrumban

scrumban
Scrumban is a project management framework that is a hybrid of two popular agile methodologies: Scrum and Kanban. Scrumban is a popular approach to helping businesses focus on the right strategic tasks while simultaneously strengthening their processes.

Scrum Anti-Patterns

scrum-anti-patterns
Scrum anti-patterns describe any attractive, easy-to-implement solution that ultimately makes a problem worse. Therefore, these are the practice not to follow to prevent issues from emerging. Some classic examples of scrum anti-patterns comprise absent product owners, pre-assigned tickets (making individuals work in isolation), and discounting retrospectives (where review meetings are not useful to really make improvements).

Scrum At Scale

scrum-at-scale
Scrum at Scale (Scrum@Scale) is a framework that Scrum teams use to address complex problems and deliver high-value products. Scrum at Scale was created through a joint venture between the Scrum Alliance and Scrum Inc. The joint venture was overseen by Jeff Sutherland, a co-creator of Scrum and one of the principal authors of the Agile Manifesto.

Six Sigma

six-sigma
Six Sigma is a data-driven approach and methodology for eliminating errors or defects in a product, service, or process. Six Sigma was developed by Motorola as a management approach based on quality fundamentals in the early 1980s. A decade later, it was popularized by General Electric who estimated that the methodology saved them $12 billion in the first five years of operation.

Stretch Objectives

stretch-objectives
Stretch objectives describe any task an agile team plans to complete without expressly committing to do so. Teams incorporate stretch objectives during a Sprint or Program Increment (PI) as part of Scaled Agile. They are used when the agile team is unsure of its capacity to attain an objective. Therefore, stretch objectives are instead outcomes that, while extremely desirable, are not the difference between the success or failure of each sprint.

Toyota Production System

toyota-production-system
The Toyota Production System (TPS) is an early form of lean manufacturing created by auto-manufacturer Toyota. Created by the Toyota Motor Corporation in the 1940s and 50s, the Toyota Production System seeks to manufacture vehicles ordered by customers most quickly and efficiently possible.

Total Quality Management

total-quality-management
The Total Quality Management (TQM) framework is a technique based on the premise that employees continuously work on their ability to provide value to customers. Importantly, the word “total” means that all employees are involved in the process – regardless of whether they work in development, production, or fulfillment.

Waterfall

waterfall-model
The waterfall model was first described by Herbert D. Benington in 1956 during a presentation about the software used in radar imaging during the Cold War. Since there were no knowledge-based, creative software development strategies at the time, the waterfall method became standard practice. The waterfall model is a linear and sequential project management framework. 

Read Also: Continuous Innovation, Agile Methodology, Lean Startup, Business Model Innovation, Project Management.

Read Next: Agile Methodology, Lean Methodology, Agile Project Management, Scrum, Kanban, Six Sigma.

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About The Author

Gennaro is the creator of FourWeekMBA, which reached about four million business people, comprising C-level executives, investors, analysts, product managers, and aspiring digital entrepreneurs in 2022 alone | He is also Director of Sales for a high-tech scaleup in the AI Industry | In 2012, Gennaro earned an International MBA with emphasis on Corporate Finance and Business Strategy.
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