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SMED is a manufacturing process that promotes rapid changeovers between different machines, reducing waste and inventory space. Toyota® vehicles use SMED to save money by reducing Economic Lot Size. SMED addresses lean manufacturing by removing non-essential steps, including all materials needed, and simplifying necessary steps.
One-minute die swapping (SMED) is a manufacturing process that promotes rapid changeovers between different machines in operation and production of different units. The term does not refer to switchings of less than a minute, but rather those that occur within single digits, i.e. less than ten minutes. SMED is useful for streamlining manufacturing processes by removing bottleneck effects, reducing waste and decreasing the inventory space needed at any given time.
During a typical manufacturing process, machinery and equipment are shut down and reconfigured once all products have completed a run. Current products should be stored at this time until the new equipment has been readied for a second run. This period of time, known as the change, is where SMED focuses to create lean manufacturing.
Manufacturers believed it was most cost-effective to optimize the number of units produced at each stage of the process, but in reality, improving changeovers and adopting lean manufacturing tactics can save time and money. Not only will this reduce the inventory space required to store ongoing units, also known as lot size, but it will also increase your return on investment (ROI) by using your equipment more efficiently. The number of jobs in progress (WIP) also decreases because products are made in smaller batches and faster.
A common example of SMED in practice is the manufacturing process of Toyota® vehicles. The process initially focused on a large number of units for each stage, but the company found that the rapid format changeovers saved them money in the long run. This was because they were spending large sums of money storing WIP on expensive land, the costs of which were higher than the cost of foreign exchange. By streamlining equipment installation time, the company was able to save money by reducing the previously large Economic Lot Size (EOQ).
There are several goals to improve lean manufacturing that SMED addresses. First, the process requires the removal of non-essential steps or equipment. This could involve anything from implementing new, more universal equipment to limiting adjustments on non-essential machines during changeovers. Second, the process should include all materials needed for the next stage, as well as records of their locations, to make sure everything needed is there at the time of the step. Simplification of the necessary steps in the changeover and thorough measurements and tests are the last major steps of the SMED process.
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