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Online Student Guide

OpusWorks 2019, All Rights Reserved

Changeover Reduction

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Table of Contents LEARNING OBJECTIVES ....................................................................................................................................4

INTRODUCTION ..................................................................................................................................................4 WHAT IS CHANGEOVER REDUCTION? ....................................................................................................................................... 4 CHANGEOVER VS. CHANGEOVER REDUCTION.......................................................................................................................... 4 DEFINITIONS - CHANGEOVER TIME ........................................................................................................................................... 5 DEFINITIONS – SET-UP ................................................................................................................................................................. 6 DEFINITIONS – TAKT TIME .......................................................................................................................................................... 6

TAKT TIME ...........................................................................................................................................................6

CHANGEOVER REDUCTION .............................................................................................................................7 HISTORY OF CHANGEOVER REDUCTION ................................................................................................................................... 8 THE PURPOSE OF CHANGEOVER REDUCTION .......................................................................................................................... 8 BENEFITS OF CHANGEOVER REDUCTION.................................................................................................................................. 8 KEY BENEFITS OF CHANGEOVER REDUCTION ......................................................................................................................... 9 PRODUCTION PROCESS EXAMPLE 1 ........................................................................................................................................... 9 PRODUCTION PROCESS EXAMPLE 2 ........................................................................................................................................ 10

INTERNAL AND EXTERNAL ACTIVITIES ................................................................................................... 11 EXTERNAL ACTIVITIES ............................................................................................................................................................... 11

CHANGEOVER ................................................................................................................................................... 12 CHANGEOVER TWO PRIMARY COMPONENTS ....................................................................................................................... 12

OHNO CIRCLE ................................................................................................................................................... 13 GEMBA ........................................................................................................................................................................................... 13 THE OHNO CIRCLE PROCESS .................................................................................................................................................... 14 GUIDELINES FOR SUCCESSFUL CHANGEOVER REDUCTION PROCESS .............................................................................. 15

13 STEPS OF CHANGEOVER REDUCTION ................................................................................................. 16 13 STEPS OF CHANGEOVER REDUCTION – STEP 1 ............................................................................................................. 16 13 STEPS OF CHANGEOVER REDUCTION – STEP 2-4 ......................................................................................................... 16 13 STEPS OF CHANGEOVER REDUCTION – STEP 5-7 ......................................................................................................... 17 13 STEPS OF CHANGEOVER REDUCTION – STEP 8-10 ...................................................................................................... 18 13 STEPS OF CHANGEOVER REDUCTION – STEP 11-13 ................................................................................................... 18

INTERNAL AND EXTERNAL ACTIVITIES IN STEPS 4-6 ......................................................................... 19 STEP 4 – SEPARATE INTERNAL AND EXTERNAL ACTIVITIES ............................................................................................ 19 STEP 5 – CHANGEOVER WASTE REDUCTION ....................................................................................................................... 20 STEP 6 – TRANSFER INTERNAL TIME TO EXTERNAL TIME .............................................................................................. 21 OBSERVE CHANGEOVER............................................................................................................................................................. 22

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Learning Objectives

Upon completion of this course, student will be able to: • Define Changeover Reduction relative to Lean • Provide a brief overview of the origin of Changeover Reduction • Discuss the benefits of Changeover Reduction • Explain how it supports and enables Lean waste reduction • Define Takt time and how it realted to Changeover Reduction activities • Distinguish between external and internal work • Provide a step-by-step guide to implementing a successful Changeover Reduction program

Introduction

What is Changeover Reduction?

Changeover Reduction, the term most recognized by Lean practitioners today, is also known as Single Minute Exchange of Die (or SMED), Rapid Changeover, Quick Changeover, and Set-up Reduction. Throughout this module, however, we will use only the term Changeover Reduction.

Traditionally, Changeover Reduction has been used mainly in the manufacturing environment. To streamline the learning in this module, we will focus on manufacturing, but keep in mind that there are equal opportunities and applications for its use in many other environments.

For example, in the medical and healthcare community, it can significantly reduce the time required for changeover from one patient to the next for procedures such as x-rays and CT scans.

The sports industry often has use for Changeover Reduction as well, the most obvious example being the traditional NASCAR “pit stop.” Service industry organizations that want to reduce and minimize equipment repair downtime, such as the U.S. Postal Service, demonstrate yet another instance of the many applications that exist for this valuable Lean methodology.

Changeover vs. Changeover Reduction

As we begin our discussion of Changeover Reduction, it is important to clarify that it is not synonymous with Changeover. Although the two are similar, with closely related principles, they are not the same. Changeover refers to the series of actions that are taken to convert a process, product line, or machine from running one product to running another. Let’s look as some more examples. In automotive manufacturing, this would include changing a fuel injector or spark plug assembly process from one calibration or heat range to another.

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An example in health care would be the reconfiguration of an operating room from one type of surgery to another.

In the office environment, even routine and simple acts, such as changing the ink or toner cartridge, or switching the font style and size of a presentation, are forms of Changeover. Changeover times can last from less than a minute to several weeks, depending on the complexity of the product design or process.

To set the stage for our discussion of Changeover Reduction, it is also necessary to understand the definitions of Changeover time, Set-up, and Takt Time.

Definitions - Changeover Time

Changeover time is a metric that describes the amount of time elapsed from completion of the last good part of a production run, to the first good part of the next run. Changeover time can include many activities, such as clean up, removing the tools and fixtures required for the previous product, installing the tools and fixtures for the next product, completing paperwork, and successfully passing inspection of the next product. Keep in mind, the Changeover is not complete until the rate of the production run returns to the planned rate of the new product or process.

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Definitions – Set-up

In Lean, Set-up refers to the act of preparing a machine or work area to produce a specific product. Set-up occurs when the machine or equipment is not running. Set-up time is a key component of the overall Changeover time.

Definitions – Takt Time

Takt Time is a Lean methodology metric and parameter that plays an important role in Changeover Reduction. When determining what its process Changeover time must be in order to meet customer demand and deliveries, an organization’s Lean team must first know the process Takt Time.

Takt Time

Takt Time is the most ideal processing time, between each process step, that is required to produce and deliver a product or service on time and coordinated to customer demand. It is used to define the rate or pace at which materials, information, components, assemblies, and finished product or services must be provided in order to satisfy customer demand.

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It is often referred to as the heartbeat or pulse of a Lean manufacturing or service organization. Takt Time must not be confused with Cycle Time or Lead Time; these are very different and will be discussed in later modules.

Takt Time is German for a musical meter or beat. In Lean methodology, it represents the rhythm or pulse of customer demand. Calculating Takt Time is simple. It is the daily available production time divided by the average daily customer demand for that product.

𝑻𝒂𝒌𝒕 𝑻𝒊𝒎𝒆 =𝑫𝒂𝒊𝒍𝒚 𝑨𝒗𝒂𝒊𝒍𝒂𝒃𝒍𝒆 𝑷𝒓𝒐𝒅𝒖𝒄𝒕𝒊𝒐𝒏 𝑻𝒊𝒎𝒆

𝑫𝒂𝒊𝒍𝒚 𝑨𝒗𝒆𝒓𝒂𝒈𝒆 𝑪𝒖𝒔𝒕𝒐𝒎𝒆𝒓 𝑫𝒆𝒎𝒂𝒏𝒅 𝒇𝒐𝒓 𝑷𝒓𝒐𝒅𝒖𝒄𝒕

Changeover Reduction

You have just learned the definition of Changeover, Takt Time, and some other key terms. You also know that Changeover is not the same as Changeover Reduction. So, what is Changeover Reduction? Changeover Reduction is a structured methodology and technique used to reduce the combined amount of Set-up and Start-up time it takes to change a process from running one specific calibration or type of product to another. (Stamping or molding dies are typical examples). The traditional target is to reduce overall Changeover time to less than 10 minutes.

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History of Changeover Reduction

Before we move forward, let’s take a brief look back at the history of Changeover Reduction and how it evolved into the methodology and Lean principle it is today. In 1950, a man named Dr. Shigeo Shingo developed and introduced the first stage of Changeover

Reduction. In 1970, he developed the original Quick Changeover SMED systems at Toyota that involved splitting a Changeover Set-up operation into internal and external components. Since that time, it has continued to evolve and improve as many organizations adopt this valuable methodology. The success of the Toyota Production System continues to influence and drive continuous improvement activities throughout the world today, in just about every manufacturing environment.

Shingo’s concept of splitting operations into internal and external components is a critical element of Changeover Reduction, which we will discuss later in this module.

The Purpose of Changeover Reduction

Although Changeover Reduction serves to increase production capacity, this is not its primary purpose. More significantly, it is a key element of Lean methodology that enables more frequent Changeovers in order to increase production flexibility; increase uptime and throughput; reduce inventory levels and costs; improve product quality; improve response time to customer demand; improve customer satisfaction and “delight”; and increase organizational profitability. The typical end result of a successful Changeover Reduction program is increased capacity, and the ability to profit from meeting customer demands.

Benefits of Changeover Reduction

Now let’s take a look at some of the many benefits of Changeover Reduction. By reducing required adjustments during Set-up, Changeover Reduction minimizes the risk of producing defects and errors. In other words, the risk of creating a defect due to adjustment error is minimized. This promotes product quality and compliance to customer requirements or specifications.

Another benefit is reduced inventory costs. Inventory cost reduction is realized by significantly reducing the size and number of batches. This directly leads to lower operating costs and more effective use of valuable production floor space. Reduced inventory also supports Continuous or One Piece Flow, as lot and batch size are reduced.

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An often overlooked benefit of Changeover Reduction activity is “on-time” delivery improvement. Reducing Changeover times enhances JIT (or Just in Time) delivery. It directly reduces product or service lead times, increases output, and improves response time to customer demand. The result is often new and welcomed customer “Delight.”

Key Benefits of Changeover Reduction

This graphic illustrates and summarizes the key benefits of Changeover Reduction. Shorter Changeover times lead to increased production capacity by converting machine downtime to productive time. Increased capacity results in increased production, less capital equipment, and fewer working shifts. Shorter Changeover times also enable the transition to smaller batch sizes. It is common for companies with significant Set-up times to produce more parts per Set-up, which increases batch sizes. Smaller batch sizes result in many benefits such as reduced inventory, shorter lead times, more production flexibility, and higher product or service quality. All these benefits lead to increased profitability, and “delighted” customers! Next, we will take a look at some of these key benefits in more detail.

Production Process Example 1

To help illustrate how Changeover Reduction helps decrease batch sizes, take a look at the production process shown here. The details of our example are as follows: The first step in the production process produces four types of parts, A, B, C, and D. All four of these parts are used in an assembly operation that works one shift a day. Because of the high demand for these parts, the equipment runs 24 hours a day, producing these four parts around the clock. Each part is run for 4 hours at a time, and requires a 2-hour equipment Changeover time between parts. The assembly process that uses these parts frequently runs out of the specific part that is needed, depending on what the customer has ordered. When this happens, the production has to stop and wait until the next time the equipment is changed over to produce the part that is needed. The current time allocation chart shows that this wait time may be as long as six hours! Because the

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assembly team works only one shift, it might have no more work until the next day. To address this issue, the company undertakes a Changeover Reduction effort on its initial process and succeeds in reducing Changeover time from 2 hours to 1 hour.

Based on this outcome, the company decides to adjust its production schedule to continue producing the same amount of each item, but to produce each item within a 12 hour time frame instead of its original 24 hour time frame. This adjustment to the production schedule offers much more flexibility in scheduling the next item to be run. Now, when the assembly operation is about to run out of a part, the production process can quickly respond and provide parts within 3 hours or less.

Production Process Example 2

Let’s consider an alternative scenario. Instead of adjusting its production schedule, as in the previous example, the company may have decided to use the benefits of Changeover Reduction in a different way. Recall that prior to its Changeover Reduction effort, the equipment ran 24 hours per day; this did not allow for any downtime for routine maintenance. To address this issue, the company may choose to keep the same production schedule, but now it can use the time gained by shorter Changeovers to allow for routine maintenance. The company may also choose to use this additional time to produce more parts during periods of higher demand.

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Internal and External Activities

In relation to Changeover, internal activities and external activities are defined as follows: Internal activities are activities that must be performed while the machine is not running. External activities, on the other hand, are activities that may be performed while the machine is running. It is important to clarify that although we are using the word “machine” in our definitions of internal and external activities, this concept is not limited to manufacturing. When the concept is applied in non-manufacturing environments, the word “machine” in each definition can also represent a person or a team developing data, an idea, or information into a product or finished service.

External Activities

As you just learned, external activities, unlike internal activities, may be performed while the machine is running. In other words, external activities do not force production to stop. The goal of Changeover Reduction, therefore, is to externalize as many Set-up tasks or activities as possible in order to minimize the time the “machine” is not producing a quality product or service. Later in this module, as we walk through the key steps of Changeover Reduction, we will talk more about how internal and external activities are identified and separated.

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Changeover

Earlier in this module, you learned the definitions of Changeover and Set-up. Because it is a fairly common error to use these terms interchangeably, let’s take a moment to clarify the difference: Recall that Changeover refers to the series of actions taken to convert a process, product line, or machine from running one product to running another; and Changeover time is a metric that describes the amount of time elapsed from completion of the last good part of a production run, to the first good part of the next run. Set-up, therefore, is only one component of Changeover. It is also worthwhile to note that some Lean practitioners use the term “Turnaround” in place of Changeover. However, throughout this module, we will use only the more recognized term, Changeover.

Changeover Two Primary Components

Changeover is divided into two primary components. As we just mentioned, Set-up is one component. Set-up focuses on the actual process of converting the equipment or machine to do work. The other component is Start-up. Start-up focuses on fine tuning the equipment or machine after it has been restarted, and while it is returning to the desired production rate or capacity. Also part of Set Up and Start Up will be clean-up activities that focus on the removal of previously utilized products, sub-assemblies, work documents, materials, or components from the process area or product line.

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Ohno Circle

Successful Changeover Reduction requires Lean practitioners to change the way they think about and analyze Changeover processes. One tool used for this purpose is the Ohno Circle. Let’s take a closer look:

Taichi Ohno, who worked closely with Dr. Shingo as the Toyota Production System developed, introduced a key method for understanding processes, and eventually Changeover Reduction. His innovative method, called the Ohno Circle, stressed the idea of “learning through Genchi Genbutsu,” a Japanese term that means “go and see.” Ohno’s basic premise was that to fully understand what is happening during a product or process

Changeover, it is critical to go to the place where the work is being done, and observe what is happening first hand. The Japanese term Gemba refers to this “real place” where the work is being done. Ohno’s methodology shifts our thinking; it says that although data is important, going directly to the problem place is even more important. This is a key element for successful Changeover Reduction. Next, we will discuss the details of the Ohno Circle, and its relationship to Gemba.

Gemba

As we continue our discussion of the Ohno Circle, let’s consider the importance of Gemba. As you just learned, Gemba refers to the place where all Changeover activities are actually taking place; put simply, Gemba is “where the action is.” Putting Gemba into action is quite simple. The key is to go to the process targeted for Changeover Reduction, and observe. Gemba participants must be careful to

stay out of the way of the current Changeover team, and be as invisible as practical. Here are the steps involved in Gemba: First, physically go to the process operation or line where the Changeover is taking place. Next, stop, look around, and observe first hand; think of that old railroad crossing rule, “Stop, Look, and Listen!” The next step is to talk to the people who are actually doing the Changeover, and really listen to what they say. The goal of Gemba is to gain a clear understanding of the real current situation. To achieve this goal, participants must not rely on old data, reports, or what

someone else has said. They must also ensure that any Changeover problem is supported by the facts, as well as data. Finally, they must evaluate how Changeover performance is measured and what tools are used.

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The Ohno Circle Process

As with Gemba, the focus of the Ohno Circle is first hand observation and verification. To carry out the Ohno Circle process, teams should follow these detailed instructions:

1. Draw a real or imaginary circle near the process you are evaluating for Changeover Reduction. Stand off to the side so as to not interfere with the current Changeover process, but close enough to observe. Don't forget to bring a pencil, blank paper, and stopwatch.

2. Stand in the circle. 3. Watch your environment. Remember, “Stop, Look, and Listen!”

4. Observe everything that’s happening, including people, motion, process, flow, layout, machineries, etcetera. 5. Write down any improper or abnormal things and

opportunities you see. 6. Think about what could be done to reduce the Changeover time.

7. Observe the entire Changeover process, from one hour before the Changeover starts until the process is back to the full desired capacity rate. 8. Repeat the observation for three to four Changeovers to verify observations.

9. Repeat these steps after each improvement is implemented. 10. Document, document, document! Remember, videos and photos are great documentation tools.

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Guidelines for Successful Changeover Reduction Process

As we move forward with our discussion of Changeover Reduction, it is important to remember that this methodology requires a shift from traditional thinking and analysis. Here are some tips and guidelines for achieving a successful Changeover Reduction program: 1) Rethink the idea that it’s okay for machines to be idle, but not for workers. In business, we tend to think that people should not stand around and do nothing, because they are being paid. In reality, we also pay for machines, regardless if they operate or not. 2) Keep in mind that the ideal Set-up Changeover is no Set-up or Changeover at all, or one that is completed within seconds. 3) Understand what “Pre-Changeover” activity or work is required, and make sure it is documented for future reference. 4) Ensure that all tools and process equipment are always ready and in perfect condition. Establish and document repair and maintenance procedures for Changeover related equipment such as dies and jigs; complete repairs before needed; and make sure procedure is enforced and followed. This concept of preparing ahead of time is very important. Unfortunately, it is one of the weakest areas found in many organizations related to Changeovers in general. 5) Consider using a signal to “Start,” such as blowing a whistle, and have a team of workers respond to each Changeover. 6) Establish goals to reduce Changeover times. Record all Changeover times and display them near the machine. Communicate and challenge the team. 7) Distinguish between internal and external Set-up activities, and strive to convert internal to external Set-up.

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13 Steps of Changeover Reduction

13 Steps of Changeover Reduction – Step 1

So far in this module, we have provided an overview of Changeover Reduction; described its benefits; and discussed some key terms, concepts, and tools used in this methodology. Now, we will take you, step-by-step, through the 13-step process for successful Changeover Reduction.

Step One is to observe and fully understand the current state of the Changeover process and how it is performing. In this initial step, the Set-up Changeover improvement team observes the current Changeover process, measures time and distances, documents, and measures again.

Adhering to Gemba, the team observes the actual work place and activity. Once it has observed and documented the current state, it defines tasks that need to be done. In many cases, the team will be working with heavy equipment and moving parts, so safety is critical.

13 Steps of Changeover Reduction – Step 2-4

Step Two is to set an improvement goal. The team determines what it wants the Changeover time to be. It takes into consideration the Takt Time, and based on the customer demand, determines the amount of improvement needed. In this step, the team should also consider defining such things as batch size, throughput, and transport distance.

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Step Three is to conduct a 5S Kaizen Event. In this step, the team should use its best judgment to determine whether a complete Kaizen Event is needed. If a 5S Kaizen Event has recently been completed successfully, and is being enforced, the team may decide to simply observe the area for general housekeeping and cleanliness. There is no need to invest time and dollars into repeating an already successful 5S Event.

Step Four is to identify and separate Changeover process steps into key operations. To do this, the team works from the actual instructions and observations to identify external tasks and internal tasks. Recall that external tasks are those that can be done while the equipment is still running, and internal tasks are those that must be done while the equipment is stopped.

13 Steps of Changeover Reduction – Step 5-7

Step Five is to identify and eliminate any and all non-essential operations. Examples include adjusting only one end stop instead of two; replacing only the required necessary parts or inserts; or making as many parts, fittings, and attachments as universal as possible.

Step Six is to transfer internal time to external time. We will discuss this step in more detail later. Step Seven is to prepare for and perform the external Set-up. To do this, the team gathers all tools required and places them at the site. It then prepares the item to be exchanged during Quick Change (pre-heating a die is a good example of this), and ensures everything is as clean and sharp as required before starting. Finally, it makes certain that all new materials for the Changeover are correct and at the process location; that no key products or components are missing; and that all key components or parts are repaired and ready to use before starting.

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13 Steps of Changeover Reduction – Step 8-10

Step Eight is to simplify the internal Set-up. To do this, for example, pins, cams, and jigs can be used to reduce adjustments. Replacing nuts and bolts with knobs, levers, and toggle clamps, or replacing full-threaded bolts with quarter-turn bolts may also help simplify the Set-up. Remember, no matter how long the bolt, only the last turn tightens it.

Use of “Quick” connect and disconnect fittings is helpful as well. Step Nine is to practice Changeover Set-up over and over until it’s perfect. The objective of this step is to improve each time to meet the “Single Minute Challenge.” To do this, the Changeover improvement team trains the work team, sets the improvements in place, and observes the results. It then communicates the results to the team, and displays the results for all to see. Step Ten is to measure and document, and then measure and document again and again. The only way to really know if Changeover and Start-up time waste was reduced is to measure it. Here, the team uses Gemba; it goes to the actual place where the work is being done. It then standardizes the results in the form of Standard Work procedure.

13 Steps of Changeover Reduction – Step 11-13

This brings us to the last three steps for successful Changeover Reduction. Step Eleven is to communicate and display results; often, competitions are set up between teams. Step Twelve wraps up the process with a 5S Event; as in Step Three, the team uses its judgment here to decide whether a 5S Event is required. And finally, Step Thirteen is to celebrate and recognize performance success.

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Internal and External Activities in Steps 4-6

One of the most important components of understanding Changeover Reduction is having a firm grasp of internal and external work activities, and how to transfer internal to external activity. With this in mind, we will review Steps Four through Six of our Changeover Reduction process in more detail. As we discussed earlier, the goal of Changeover Reduction is to externalize as many Set-up activities or tasks as possible in order to minimize the time the “machine” is not producing a quality product or service.

Step 4 – Separate Internal and External Activities

To begin our detailed discussion of internal versus external activities, we will return our focus to Step Four of the Changeover Reduction process. This is where the real activity starts. Recall that in Step Four, the team identifies and separates Changeover process steps into key operations. A Changeover Analysis Sheet may be used to document Changeover activity and to identify improvement opportunities.

Here’s how Step Four is accomplished: The team works from the actual instructions and observations to identify internal and external activities. Remember that internal activities are operations that must be done when the machine or equipment is not running. These are typically removal and installation activities of dies and tooling, or cleaning of internal components. External activities, on the other hand, are operations that can be done when the machine or equipment is running. Preparation of tools and supplies, clean-up tasks, and paperwork are typical examples of external activities. As the Changeover team identifies and separates the process steps, it may determine that some of the operations or activities can be performed before the Changeover, or that some can and should be done after the Changeover.

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This graphic demonstrates the relationship between internal and external work activities. External activities are often referred to as “off-line” activities, because they can be done “offline,” without interrupting the process. A good example of an external or “offline” activity is die refurbishment maintenance for dies that are not in use at the time. Bolting the new die in place on the die press, however, can only be performed when the process is not running, and is therefore identified as an internal activity.

Step 5 – Changeover Waste Reduction

Now let’s take a closer look at Step Five of the Changeover Reduction process. As you learned earlier, the focus of Step Five is to identify and eliminate any and all non-essential activities or operations. In this step, the team is on the alert for any and all Changeover waste reduction or elimination opportunities.

When the team identifies internal or external activities that cannot be justified, or are not necessary for the process or work, it seeks to reduce or delete them. Keep in mind that the entire team must agree before deleting or eliminating an activity.

If there is an objection, that objection must be justified by facts; and a trial test must be performed, without the activity in place, to verify impact on Changeover. Note that in Lean, waste is sometimes called “muda.”

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Step 6 – Transfer Internal Time to External Time

The primary goal of Step Six is to move as many internal activities into external activities as practical.

There are numerous ways the Changeover team can move internal work activities to external work activities. Some of the ideas it might consider include the following: • Have the Changeover support team at the work area shortly before the Changeover begins. • Stage all required tools and supplies at the work area before the Changeover begins. • Prepare tooling, and make necessary alignments or adjustments, prior to stopping the process. • Complete any required paperwork after the Changeover is complete and the process is running back at the appropriate rate.

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Observe Changeover

After all the Changeover activities have been documented, the team analyzes each activity to determine whether it is internal or external. A Changeover Analysis Sheet, like the one shown here, is a useful analytical tool. With this worksheet, the team records each Changeover activity; records start and stop times; notes whether the activity is internal or external; identifies the problem or issue; and lists opportunities for improvement.