CONFIDENTIALThisreportissolelyfortheuseofclientpersonnel.Nopartofitmaybecirculated,quoted,orreproducedfordistributionoutsidetheclientorganisationwithoutpriorwrittenapprovalfromMcKinsey&Company.ThismaterialwasusedbyMcKinsey&Companyduringanoralpresentation;itisnotacompleterecordofthediscussion.©CopyrightMcKinsey&Company,Inc.2000SMEDSimulation2©CopyrightMcKinsey&Company,Inc.2000•Introduction•SMEDSimulation•Round1•Round2•HowtotakeSMEDfurther-principlesandapproachAgenda:SMEDSimulation1:30-1:451:45-2:302:30–3:003:00-3:453©CopyrightMcKinsey&Company,Inc.2000Agenda:SMEDWorkshop1:30-1:451:45-2:302:30–3:003:00-3:45•Introduction(whatandwhy)•SMEDSimulation•Round1•Round2•HowtotakeSMEDfurther-principlesandapproach4©CopyrightMcKinsey&Company,Inc.2000WhatisSMED?•SMEDstandsforSingleMinuteExchangeofDies•It’salsoknownasSet-upReductionorQuickChangeoverandtheprinciplescanbeappliedinANYenvironment•SMEDisanapproachofcontinuallychallengingset-up–toachievethelowestpossibletime(ultimateisone-touchornoset-up)•Set-upforyourcompanymeans:–from...–….tothepointwhenthelinerunssmoothly,atfullspeedandwithoutfurtheradjustment5©CopyrightMcKinsey&Company,Inc.2000WhydoweuseSMEDmethods?SMEDcanbenefitproductionintwoways:IncreasecapacityIncreasefrequencyofchangeoverReducedbatchsizesReducedbatchsizesReducedstocklevelsReducedstocklevelsIncreasedflexibilityIncreasedflexibilityReducedlead-timeReducedlead-timeImprovedqualityImprovedqualityReducedwasteReducedwasteIncreasedfrequencyofSet-upIncreaseindemandcan’tbemetAdditionaltimerequiredBeforeAfterSMEDReducedSet-uptimemeansmoredemandcanbemetinthesametimeTotaltimeavailableProductivetimerequiredSet-uptime6©CopyrightMcKinsey&Company,Inc.2000SMEDhelpsimproveOEEOEEstandsforOverallEquipmentEffectivenessandmeasurestotalmachineperformanceOverallEquipmentEffectiveness=(0.52)x(0.34)x(0.94)=0.16=16%MgtAllowances=15.3hrsTotalAvailableTime(156-15.3)=140.7ScheduledWorkTimepermonth156hoursAvailability=(140.7)-(67.4)=0.52(140.7)Breakdown=42.9hrsSet-up=24.5hrsOperatingTime(140.7-67.4)=73.3Quality=(24.9)-(1.4)=0.94(24.9)Scrap=1.4hrsValue-addedTime(24.9-1.4)=23.5Productivity=(73.3)-(48.4)=0.34(73.3)Stoppages=23.9hrsReducedSpeed=24.5hrsRunningTime(73.3-48.4)=24.9Thefivebiglosses:1.Breakdown2.Set-up3.Stoppages4.ReducedSpeed5.PoorQualityThefivebiglosses:1.Breakdown2.Set-up3.Stoppages4.ReducedSpeed5.PoorQuality7©CopyrightMcKinsey&Company,Inc.2000•Introduction•SMEDSimulation•Round1•Round2•HowtotakeSMEDfurther-principlesandapproachAgenda:SMEDWorkshop1:30-1:451:45-2:302:30–3:003:00-3:458©CopyrightMcKinsey&Company,Inc.2000ObjectivesoftheGame•Simulatearetoolingoperation•Pointoutroomforimprovement(organisationalandtechnical)•IntroducetheSMEDmethod9©CopyrightMcKinsey&Company,Inc.2000RulesoftheGame•Changeatyrefromyourcarintheshortesttimepossible•Job1–Getyourflattyreout•Job2–Putyournewflatin10©CopyrightMcKinsey&Company,Inc.2000TheTeam•1Operator•1Inspector•1Timekeeper•1Observator11©CopyrightMcKinsey&Company,Inc.2000•Introduction•SMEDSimulation•Round1•Round2•Round3•HowtotakeSMEDfurther-principlesandapproachAgenda:SMEDWorkshop1:30-1:451:45-2:102:10-2:302:30-2:452:45-3:3012©CopyrightMcKinsey&Company,Inc.2000123456789#Date:Machine:ChangingFrom:To:Total:CommentsregardingwasteElementaryworkingactionsSet-upObservationSheethminsecminsecCanbesplitin10Ti...