Reducing set up time

Reducing set up-time

“One of the most noteworthy accomplishments in keeping the price of

[our] 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.”
 Reducing set up-time

On the surface, reducing set up time does not appear to provide a

significant payback. In a typical manufacturing facility, set up time
might only represent only about 5-10% of total processing time.
Meaning, that if you completely eliminated set up time, your payback
would only be an increase in capacity of 5-10%. Reducing set up time
to ZERO can be an expensive proposition. So, why are major
companies working so feverishly to reduce their set up times?
Maybe these companies see benefits OTHER than increased capacity.
 Reducing set up-time

Capacity is indeed one important reason for improving set up time. If

we look closely at our capacity issues, we are sure to find that most of
our problems are due to the limited output of one or two machines or
processes. This bottleneck limits the output of the entire facility, and is
probably responsible for most of our late orders. Focusing our set up
time reduction efforts and dollars on this one machine/department is
going to be a good investment.
 Reducing set up-time

However, most organizations that really are effective in reducing set

up times discover big benefits in lead-time reduction and increased
responsiveness to customers. Lead-time (or, cycle time) is almost
directly proportional to total work-in-process inventory (WIP).
Reducing set up time allows us to reduce batch sizes, which results in
an equal (percentage) reduction in lead-time.
Set up times can usually be reduced by 50% without capital
expenditures, and a 50% reduction in set up time can enable batch size
reductions of at least 50%. So, in a relatively short amount of time and
NO cash outlay, a company can reduce lead-time by more that 50%.
You can now respond to your customer’s orders in say 4 weeks
instead of 10 weeks, with late orders practically non-existent.
 Set-up reduction plan

Our set up reduction action plan might look like this:

1. Put in place some measurements so you can tell if you are
improving. Determine the following and display the data graphically.
Be sure to update the graphs weekly.
•Current WIP (measured in terms of Rs )
•Current average lead-time (in days)
•Average set up times (in minutes) of the “worst” 20% of all machines
or processes
•Average number of late orders at any point in time
•Average batch size
 Set-up reduction plan

2. Implement a set up reduction project on the machine/process that’s

the biggest bottleneck in the facility. Your initial goal is to reduce the
set up time by 50% without spending money.
3. After you’ve reduced set up time on the #1 problem by about 25%,
begin reducing set up times on the next 2-5 worst offenders. Again,
your initial goal is to reduce the set up time by 50% on each of these
without spending money.
4. When complete with these initial set up reduction projects, reduce
batch sizes by at least 25%.
 Set-up reduction plan

5. By the time you’re to this point, your lead-times should be down by

25%, and late orders probably won’t exist. Your WIP is also down
25%, along with corresponding inventory carrying costs. And, your
cash flow will improve because you’re now able to invoice customers
sooner. Now that most of the low-hanging fruit is gone, go back and
review your original bottleneck. Where there any ideas suggested for
reducing set time further, with small capital investments? If so,
implement them, and reduce batch sizes correspondingly. If not,
investigate other ways to increase the productivity of this machine
(constraint management).
 Set-up reduction plan

6. As soon as the facility is operating smoothly with a 25% reduction

in WIP, reduce batch sizes again, this time by another 10-15%. Other
issues (than set up) will come to light, exposing additional
opportunities for improvement. For example, large batch sizes mask
quality problems, machine downtime, absenteeism, material shortages,
etc. Address these as they arise, one at a time, and continue reducing
batch sizes. Keep in mind that set-up reduction is a continuous
reduction activity.
 Some suggestions for reducing
set-up times

Some basic concepts/tips on reducing set up times include:

1. Make sure your definition of set-up is:
Time between the last good piece off the current run and the first
good piece off the next run, while running at optimum rate.
2. Understand the difference between internal and external activities.
Internal activities are:-
those that MUST be done while the machine is NOT running. For
example, on a welding machine, changing the welding probes is
internal – you have to change them while the machine is stopped.
External activities are just the opposite – activities that are done (or,
could be done, but aren’t currently) while the machine is running. For
example, retrieving parts and tools for the upcoming order can be done
while the machine is running.
 Some suggestions for reducing
set-up times

Make sure to actually perform external activities AS external activities.

For example, if the machine operator is also responsible for getting
parts for the next order, have someone else do this while the machine
is still running.
Change as many internals as possible to externals. Get parts, tools, etc.
ahead of time. If the changeover is being help up pending first-piece
inspection, do a study to determine the risk of running while first-piece
inspection is being done. Specifically, if this part has NO history of
failing first-piece, then go ahead and run, isolating parts just in case
this is once-in-a-lifetime failure. Another example; if a part (die, mold,
etc.) needs to be hot to operate properly, pre-heat it Reduce the time it
takes to do internals.
 Some suggestions for reducing
set-up times

• Use a gopher to do external tasks. Don’t allow a Rs 100,000+ asset to 
remain idle for the sake of a Rs 10/hour material handler. Ensure that 
everything  needed  for  the  changeover  is  already  organized  and  on 
hand BEFORE the changeover begins. 
• Try to position and orient everything so that the changeover operator 
moves arms but not legs.
•  Color code to prevent mistakes. 
• Use  guides  and  stops  for  quick  placement  of  fixtures  and  dies. 
Eliminate variable adjustments (use block gauges). 
• Put  changeover  tasks  in  a  checklist.  Revise  the  list  as  the  set  up 
procedure (i.e., time) is improved. 
 Some suggestions for reducing
set-up times

• Graph  your  progress.  Set  goals/objectives  (50%  reduction;  75% 

reduction; 10 minutes; etc.) and draw these in on the graph. 
•  Do not allow deviation from die and jig standards. 
• Videotape  the  changeover  and  review  for  opportunities  for 
improvement. 
• Use teams for additional ideas.
• Eliminate  bolts  –  on  those  you  can’t  eliminate,  remove  most  of  the 
threads.  Use  a  few  common  sizes  of  bolts/nuts  to  reduce  the 
effort/time required to find wrenches, etc.
• Organize work areas. Organize tool cribs.
• Pre­heat and install parts hot. Remove hot – a pair of asbestos gloves 
is cheaper than holding up a $100,000 machine for a 1­hour cool down 
period. 
 Some suggestions for reducing
set-up times

  Many companies find that set up times can be reduced to less than 30 
minutes without significant investment. Set up time targets for many 
world class manufacturers is 10 minutes or less (also known as single 
minute exchange or dies or SMED). 
SMED
 What is SMED?

SMED, stands for Single-Minute Exchange of Die, is a theory and

techniques for performing setup operations in under ten minutes, i.e.,
in a number of minutes expressed in a single digit.
The SMED method was revolutionized by Mr. Shingo since 1950 in
Japan.
The concepts and techniques became available to other countries
started around 1974 in West Germany and Switzerland and in 1976 in
Europe and United States.
 Components of Lead Time

• Product Development (Design) Lead Time.

• Sourcing (Purchasing) Lead Time.
• Manufacturing (Production) Lead Time.
• Order Processing Lead Time.
• Distribution Lead Time.
• Other (e.g. decision making, coordination) Lead Time.
Clearly, Production lead time is only a small portion of the whole lead
time, but it is the only component which is controllable by production
function.
 Components of Lead Time

The production lead time can be further divided into:

• Queue Time Before Processing.
• Setup Time.
• Run (Processing) Time.
• Waiting Time after Processing.
• Move Time.
Among these time elements, run time is the only portion that adds
values to the products. Others can be considered as a waste.
 Effects of Setup Reduction

• Lot-size can be reduced.

• Help to reduce inventory.
• Reduce the cost of setup labor.
• Increase the capacity on bottleneck equipment.
• Help to eliminate the setup scrap.
• Reduce the potential Quality problems and obsolescence.
 Alternatives for Setup Reduction

SMED is not the only approach for reducing setup time. Some other
alternatives are:
• Production Planning - reduce the number of setups.
• Group Technology / cell formation - reduce the number of setups
• Design Standardization - reduce the number of setups.
• Use Standard Module - reduce the number of setups.
• Work Simplification.
• Mechanization or automation - an expensive option.
 Procedures for Setup Reduction

SMED can be conducted according to the following steps:

1. Form the setup reduction team.
2. Conduct training and education.
3. Study the setup process (e.g., use video tape).
4. Classify setup operations into waste, internal setups (IED), and
external setups (OED).
Waste - Operation which do not add values to the setup.
Internal Setups - Operations that can only be performed while the machine
is shut down.
External Setups - Operations that can be performed without shutting down
the machine.
 Procedures for Setup Reduction

5. Eliminate the waste.

6. Convert as many internal setups as possible to external setups.
Use standard insert module.
7. Improve internal setups (include adjustment).
Use specially designed cart to organize tools.
Use quick-release fasteners instead of bolts and nuts.
Use stoppers to quickly position the jigs.
Use rolling bolsters instead of cranes.
Use overhang mechanisms to handle heavy jigs.
Use locating pins and holes (socket) to eliminate the adjustment.
Use standardized die height.
 Procedures for Setup Reduction

8. Improve external setups.

Apply visual control principles.
Use checklist to avoid omission.
Use specially designed cart to help organize tools.
Organize workplace (5S) to reduce search.
9. Develop the standard operating procedure (SOP).
10. Evaluate the performance of setup reduction.
11. Prepare for the next setup reduction project.