Achieving Changeover FlexibilityBrigham Young University

Prepared by: Kortney J. Jurado

What will be coveredChangeover Flexibility DefinedHow can this help our firm?Real world exampleHow do we get there?Exercise Summary

Changeover Flexibility DefinedThe ability to switch from making one product to another one without incurring high setup times

Production Lead TimeQueue: Time waiting before the operation begins Setup: Time getting ready for operationRun: Time performing operationWait: Time waiting after operation endsMove: Time physically moving between operations

How will our company benefit from achieving changeover flexibility?Brainstorming Exercise

Current Market Demands

Less costlyHigher qualityShorter lead timesIncrease in average mix

The WhyCustomers increasingly demand more customized products Reducing setup times allows us to be more responsive to customer needs If setup times are reduced at the bottleneck, capacity increases Able to convert runs into smaller lot sizes

Real World Example:

Dr. Shigeo Shingos success at Toyota with single digit setups

Single Minute Exchange of Die (SMED)Identify internal and external setup activitiesDetermine internal events which can be converted to external activitiesReduce time it takes to perform those internal and external eventsRepeat the process

Identify Internal and External Events External: can be done while machine is running previous job Ex: staging materials, getting specs and drawingsInternal: require the use of the machineEx: removal of the die

Determine Internal Events That Can Be Converted to External ActivitiesWhat changes can we make to our process or machinery?Example: A company modified the machine so that the mount and the die could be removed as one piece

Reduce Times for Both Internal and External Internal tasks will remain our constraint

Why do we need to reduce the time on our external activities?

Repeat the ProcessWhat else can be removed from internal setup?Can reduce a task by a few more seconds?What else can we do to reduce our setup times?

Split into groups and take a setup through Shingos four steps Applying Shingos Method to Our Setups

How can setup time be reduced?What can we do to make it easier, simpler, and safer? Can we do something more? What did we learn?

Another Tool: 5-SSortSimplifyScrubStandardizeSustain

Separate items that are used daily from those that are used occasionally

Remove little used items from your workspaceSort

Set in orderArrange items so they are easy to see, use, and put awayEx: carpenters shopIf tools are used sequentially, place them in that order Simplify

Clean the work area

You will not need to be cleaning during a changeoverScrub

Sort,Simplify,And Scrub DAILY

Make it a habit!Standardize

Continue to continueThere will be changes over timeStart from the beginning again and again

Sustain

Divide into groups

Create a plan to run your work area through the 5-S process

Discuss your plan with your teammates Exercise

How does 5-S affect changeover flexibility?

How can our setup times benefit from the use of this tool?What did we learn?

List and explain the steps to SMED

List and explain the steps in 5-SEvaluation

SummaryChangeover Flexibility = ProfitsCompetitive AdvantageGreater responsiveness to market demandsIncreased capacity

Vivek Sharma. (January 2001) Circuits Assembly. Vol. 12, Iss. 1; pg. 62, 5 pgsKathryn Martin. "Packaging line changeovers: Flexibility means profit."Food Engineering 1Jun1999:ABI/INFORM Trade & Industry,ProQuest. Web. 12 Apr. 2010. Spada,S..(2007,October). Packaging equipment goes mechatronic.Machine Design,79(19),S10. Retrieved April 12, 2010, from ABI/INFORM Global. (Document ID:1368586341).Cheryl Gaimon,&Alysse Morton.(2005). Investment in Facility Changeover Flexibility for Early Entry into High-Tech Markets.Production and Operations Management,14(2),159-174. Retrieved April 12, 2010, from ABI/INFORM Global. (Document ID:891741341).

Readings List

This is what will be covered in the training Why is it important for us to be able to switch from making different products without having long setup times?Setup times are a vital part of a products lead time and therefore affect the overall product cost.If we can reduce the setup times we can potentially lower COGS and increase the margins on our products. Additional questions:How will reducing our setup times benefit our customers?How will achieving changeover flexibility impact factory capacity?How might our bottom line be affected? Electronics industry customers today are I demanding cheaper, higher quality products with shorter lead times. Batch sizes are declining, and the average mix is increasing at most factories. With multiple setups per day, most PCB assembly lines cannot lose valuable production time to changeovers. However, most companies do lose up to 20 percent of their production time to changeovers.

Vivek Sharma. Circuits Assembly. San Francisco: Jan 2001. Vol. 12, Iss. 1; pg. 62, 5 pgsCustomers increasingly demand more customization in the products that they order. Every time we have to setup a machine in order to make a different product we incur setup time, which in turn reduces our factory capacity or the available time we have to make more product. By reducing our setup times we are able to cater to our customers needs without incurring huge costs associated with large setup times.

When we are able to reduce the setup time at our bottleneck station we increase the overall capacity of our plant. This allows us even more cushion space to be able to accommodate increases in demand.

We no longer have to focus on long runs of certain products in order to achieve efficiency in our processes. We also can potentially gain a competitive advantage by becoming more responsive to customers demands.

If your firm is increasing the number of products you produce you will necessarily have to achieve changeover flexibility in order to remain viable. In a few words: flexibility equals profits.While at Toyota, Dr. Shigeo Shingo developed an approach to get all of the setup down to under 10 minutes. He referred to this as single digit setups. The term was misunderstood and when it was brought to the United States it was interpreted as single minute instead of single digit. The following show the steps to his approach. These are the steps of the SMED method. The following slides will explain each step in more detail.First of all we need to identify all of the steps that are necessary to make the changeover. Once we identify each of these steps we need to classify each one of them as an external or an internal activity. Basically we need to see which of these steps are done while the machine is running and which require us to shut off the machine. Once you have classified the setup events as internal and external you need to determine which steps that currently require the machine to be stopped or are internal can be switched to an external event. We need to cut the time it takes to perform both types of tasks. Normally our internal tasks will remain our constraint. However, if our external events fall behind our internal events, they will become our new constraint. Therefore, we need to make sure that we cut down the time it takes to perform our external events also. Achieving changeover flexibility is a continuous process. Make sure that continuous improvement is part of your firms way of doing business. As operators and other employees become more familiar with this process they will be able to identify even more ways to reduce setup times and increase the flexibility of your plant. We need to make sure we foster and encourage this type of behavior. Take your group and divide it into groups of 4-5 people. Have each group run the same setup (a setup that is specific to your facility) through Shingos four steps. After having them get together the entire group will discuss their results. Have each group present their findings to the entire group. 5-S was a concept also originated in Japan. In order to translate the tool to English we had to come up with five words that started with S that described what we were trying to implement on the shop floor. The purpose of this tool is to create a well-ordered work area. As we implement this tool within all the processes of our firm we increase visibility and simplicity. When we do this, it is then easier changeover in a faster and safer way. As you separate items that are used little and remove them from the work area you increase visibility of the items your really used, especially those tools you employ during changeovers. As you do this you make your work area easier to transit and allow yourself to work more efficiently and in a safer way. During this step we seek to set in order the various tools that we use on a daily basis in our workspace. A great example of this step is a carpenters shop. Usually the tools employed in this kind of shop are placed on the wall. In order to keep everything in its place, the tools are outlined where they are supposed to go. In this way, whoever is working in the area does not lose time trying to find a certain tool needed to make the changeover or whatever else is needed. As you maintain a clean work area you will be able to increase your ability to effect quick changeovers. If you maintain your area and your tools clean you will not need to be cleaning your tools or your work area right when you need to use them to do a set up. Not only will you increase your ability to work more efficiently, but also will increase the safety of you work area (depending on the products you are making this may be a big deal). You need to make sure you incorporate these activities into your daily routine so that you ensure that the benefits from this program are maintained. After all, you will be making changeovers every day and you need the benefits provided from this tool. As the ways you do your setups change, you will need to modify certain aspects of your work area. Continue to employ this tool to make sure that the benefits from it are not lost in the change. Have the group split into groups of 4-5 people and have each one create a plan to run their area through the 5-S process. Have them then discuss with their group their individual plans to implement this tool in their work area. Have the entire group get back together and share their insights. SMED:Identify the external and internal activities. The external events are those that can be done while the machine is running; conversely, internal activities are those that require the use of the machine. Determine which internal events can be converted to an external activity. Example: modifying the machine so that the die and the mount can be removed as one piece; then have the next mount and die in one piece ready to slip into the machine. Reduce the time it takes to perform internal and external events. Your internal activities will be your bottleneck process. However, you also need to reduce the time it takes to perform your external activities so that these do not become your new bottleneck.Repeat the process: Go back and start again.Is there anything else that can be done to shave off a few seconds from the setup time? Can we make the process of changing over easier? Safer? Less stressful? The bottom line is that as we increase our changeover flexibility we are better able to respond to our customers demands. As we know, the customer is the only person that puts money back into our supply chain. The customer is continually demanding products that are more customized, smaller lots, and shorter lead times. As we improve or changeover flexibility we increase or ability to meet the ever changing demands of the market. If we can meet this customer demands while not incurring additional costs or even reducing them we gain a competitive position in the marketplace. In the end our customers get what they want, our shareholders enjoy higher profits, and our employees benefit from working for a more competitive company. The above articles are contain great information regarding the importance of changeover flexibility and how to achieve it.