Int. J. Industrial and Systems Engineering, Vol. 17, No.

1, 2014 15

Productivity enhancement through reduction of

changeover time by implementing SMED
technique – in furniture industry

Ahmed Sayem*, Md. Anisul Islam and

M.M.A. Khan
Department of Industrial and Production Engineering (IPE),
Shahjalal University of Science and Technology,
Sylhet-3114, Bangladesh
E-mail: sayem-ipe@sust.edu
E-mail: ahmedsayem02@yahoo.com
E-mail: anis-ipe@sust.edu
E-mail: anis134ipe@yahoo.com
E-mail: muhshin-ipe@sust.edu
E-mail: muhshin92@gmail.com
*Corresponding author

Abstract: Bangladesh has a vast economic position in the readymade furniture

sector both in the local and global market. In spite of the greater contribution of
the furniture industry to the national economy, furniture businesses are facing
several problems including low productivity due to unnecessary changeover,
excessive waste, and inappropriate production process. This research focuses
mainly on changeover activities of the bending machine used in the metal tube
section of furniture manufacture organisations to fabricate products of various
specifications. This paper analyses the changeover method of different
operations to address the applicability of single minute exchange of the die
(SMED) technique. It also identifies various causes related to unnecessary
changeover and its associated impact on production cycle time. The results
show that tool and die changeover time reduces from 34.24 minutes to 11.91
minutes, i.e., by 22.33 minutes, and productivity improved by 65.28%. The
achievements of SMED implementation are reduction in lead time, cycle time,
work-in process inventory level, and improved flexibility. It is found that even
a small company or a part of it can make significant improvements by adopting
SMED.

Keywords: changeover time; productivity enhancement; single minute

exchange of die; SMED; furniture industry.

Reference to this paper should be made as follows: Sayem, A., Islam, M.A.
and Khan, M.M.A. (2014) ‘Productivity enhancement through reduction of
changeover time by implementing SMED technique – in furniture industry’,
Int. J. Industrial and Systems Engineering, Vol. 17, No. 1, pp.15–33.

Biographical notes: Ahmed Sayem is an Assistant Professor of Industrial

Engineering in the Department of Industrial and Production Engineering,
Shahjalal University of Science and Technology, Bangladesh. He received his
Master of Science degree in Management, Economics and Industrial
Engineering from Politecnico di Milano, Italy. His main interest includes
operations management, service management, cost and management
accounting, etc. He has successfully completed various research projects in

Copyright © 2014 Inderscience Enterprises Ltd.

16 A. Sayem et al.

these fields. He has published various articles in such journals as International

Journal of Engineering Management and Economics, International Journal of
Fashion Design, Technology and Education, Journal of Engineering and
Technology (IUT), and Int. Journal of Machining and Machinability of
Materials.

Md. Anisul Islam is an Assistant Professor in the Department of Industrial and

Production Engineering at Shahjalal University of Science and Technology,
Sylhet, Bangladesh. Currently, he is working as a research assistant in the
Department of Mechanical and Industrial Engineering; and Operations
Management and Business Statistics, Sultan Qaboos University, Oman. His
research interests are in productivity improvement techniques, operations
management, and management science. He has published papers in many
journals such as International Journal of Fashion Design, Technology and
Education, International Journal of Industrial and System Engineering,
Journal of Engineering and Technology, and many at international conferences.

M.M.A. Khan is an Associate Professor of Manufacturing Engineering in the

Department of Industrial and Production Engineering, Shahjalal University of
Science and Technology (SUST), Sylhet, Bangladesh. He received his PhD in
Mechanical Engineering with a specialisation in Advanced Manufacturing
Technology from University of Pisa, Italy. His research areas of interest
include manufacturing with special interest in machining and welding, process
optimisation and improvement, and energy efficiency. He has published
various articles in journals, e.g., Int. Journal of Machining and Machinability of
Materials, Int. Journal of Industrial and System Engineering, Journal of
Materials Processing Technology, Optics and Laser Technology, and CIRP
Annals – Manufacturing Technology.

1 Introduction

Furniture industry is one of the largest sectors and one of the most promising growth
sectors with high export potential in Bangladesh. In fact, it plays a vital role in country’s
economic development, earning by US$19.26 million in fiscal year 2009–2010 in
Bangladesh. Currently, this industry is comprised of around 41,560 enterprises, most of
them are belongs to small and micro businesses and employs nearly 0.2 million skilled
and semi-skilled people. Out of this huge employment, almost 100,000 workers are
women (Khan, 2011).
Being one of the fastest growing sectors of Bangladesh, the furniture industry could
well be the next economy booster. One of the ingredients of success considered is low
cost labour; and a mix of cheap labour, easy access to raw materials, know-how and
favourable exchange rates. These factors also give Bangladesh a competitive edge
compared to foreign competitors such as US, Europe, Chinese, Philippine and Vietnam
market. In addition, with the industrial growth in various industries in Bangladesh like
RMG, Textiles and Ship Building, there is a huge demand for industrial furniture in these
sectors. In a recent assessment, it is seen that on an average 1.5%–2% of the ship building
cost is spent on furniture and the existing market is over US$9–12 million. Furthermore,
mass urbanisation over a short period of time is a defining characteristic of Bangladesh as
know it today. While demand in general has gone up for almost all household and
lifestyle products, the demand for furniture in particular has had a substantial growth.
 Productivity enhancement through reduction of changeover time 17

Moreover, there is a potential deemed export market of around US$48 million annually
by 2014 (Khan, 2011). Thus, the growth of Bangladesh furniture industry is evident in
both local and international market. As a consequence, in consort with several local
companies, presently many international companies are investing in furniture industry in
Bangladesh. The elegant quality, durability and variety of wooden furniture still make it
the top choice whenever people go for buying home or office furniture.
Higher productivity, improved quality, greater flexibility and low cost have been the
significant factors since long time in competitive market. Today, due to globalisation and
technological advancement, these factors gained even more attention from business
organisation in order to survive in fierce environment (Gibbons and Burgess, 2010). In
these situations, lean production techniques with many other philosophies that emphases
on eliminating waste, reducing cost, improving quality; and uses various proven tools
(Cudney and Elrod, 2011) such as SMED, Kaizen, 5S, and visual control (Singh et al.,
2010) are recommended. Generally, it is a tremendous challenge for furniture
manufacturers to utilise their maximum production capability, because that requires to
redefine, redesign and improve their production systems to meet the competitiveness in
the most fluctuating and customers responsive business market (European Commission,
2004; Kumar and Abuthakeer, 2012; Lasa et al., 2009; Modarress et al., 2005; Singh
et al., 2006). With urbanites looking for variety and diversity in furniture for their homes
and offices, the furniture industry has come onto a market which has enabled them to
experiment with different types and styles of furniture. To deal with the demand
variability (i.e., variety and diversity) it is necessary to plan the production in a way that
allows small batch size as well as short changeover or setup time. Shorter changeover
time, in fact, facilitates the small lot size productions which help business to face the
variability in demand and in quick customer response. Larger lot sizes, on the other hand,
create numerous problems, including high work-in-process and finished goods
inventories, longer lead times, and slower information flows (Trovinger and Bohn, 2005).
Infrequent runs of each product require carrying higher safety stocks, making it difficult
to respond to demand shifts or product revisions, and generally making production
inflexible. Therefore, smaller batch sizes enable companies to deliver more quickly and
to invoice sooner for improved cash flow.
Reduction in changeover time, which can be defined as the technique of reducing the
amount of time to change a process from running one specific type of product to another,
increases the productive time and production flexibility that allow for smaller lot sizes,
and reduces cost/unit, process lead times, and inventory costs (Damrath, 2012). Faster
setups ensure numerous benefits beyond smaller lot sizes, including lower labour costs,
higher effective capacity, and more flexibility, all of which are critical for response to
market forces such as rising product variety and customisation (Davidow and Malone,
1992). Bradley and Conway (2003) showed that a reduction in setup time result in lower
cyclic inventories. Setup time is an important parameter in shop-floor scheduling
problems, especially in models that include lot sizing decisions. Examples include
Bradley and Conway (2003), Chiu et al. (2003), Kim and Bobrowski (1995) and Kreipl
and Pinedo (2005). In addition, Hahn et al. (1988) examine the operating characteristics
of setup when used as a decision variable in a capacity constrained environment. They
demonstrate that setup time reduction is a key way to increase effective capacity.
It is, therefore, very important to analyse changeover time for the industries that faces
fluctuation in demand and have to produce small batch size in order to make its capacity
18 A. Sayem et al.

flexible and to utilise the capacity as higher as possible during rush in demand. In
response, several systematic methods have been developed for improving setups found in
various literatures.
The single minute exchange of die (SMED) developed by Shigeo Shingo in 1985 is
one of such important lean tool to reduce waste and improve flexibility in manufacturing
processes allowing lot size reduction and manufacturing flow improvements. SMED
reduces the non-productive time by streamlining and standardising the operations for
exchanging tools, using simple techniques and easy applications (Alves and Tenera,
2009). A reduction of non-productive time or waste can easily be attained by carefully
planning and coordination of the processes and methods so that all bottlenecks normally
associated with changeover are decreased or removed and therefore becomes easier to
changeover. SMED varies from business to business. It is important that SMED requires
strategic planning, choosing the right machinery, correct layouts, well trained people and
the best mindset of people in its implementation stage (Ofori-Ntow, 2011). SMED is a
methodology for systematically reengineering setup processes, and thereby radically
reducing their duration, with documented reductions from hours to less than ten
minutes (‘single [digit] minutes’). Even though not each setup can literally be shrink to
single-digit minutes, each reduction in setup time is enhancement (Mali and Inamdar,
2012), which in turn results in outstanding business results and improved customer
satisfaction (Vardeman, 2010). SMED can be applied in any factory and also to any
machine (Shingo, 1985). The SMED technique is used as an element of ‘TPM’ and
‘continuous improvement process’ in efforts of reaching lean manufacturing (Bamber and
Dale, 2000; Chand and Shirvani, 2000; Eti et al., 2004; McAdam and McGeough, 2000;
Prado, 2001; Sun et al., 2003).

2 Literature review

Productivity enhancement in various industries has been studied by various aspects such
as factors, measurement techniques, improvement tools, and methods (Bhamu et al.,
2012; Islam and Khadem, 2012; Linna and Pekkola, 2010; Monat, 2007) in views of
improving quality of production, eliminating drawbacks in production system, improving
equipment performance, generating a culture of continuous learning in addressing
losses and wastages associated with the operations, and improving employee skill level
(Kaur et al., 2013).
Quick changeovers in setup operation of a machine, device, process and system are
essentially required in a business to ensure flexibility in demand response to customers. It
has been used as an effective tool to reduce wastage and improve quality in various
industries (Upadhye, 2010). Moreover, it is important for a business to ensure smaller lot
sizes, higher frequency of setup and reduced production time, which are highly required
for today’s market due to globalisation (Mcintosh et al., 2007). Although, several
proposals have been approached in literature to reduce the setup wastage time spent in the
exchange of tools, for example Fogliatto and Fagundes (2003) and Hay (1989), but all
methods are found to be based on SMED. The basic idea of SMED is to reduce the setup
time on a machine. There are two types of setups: internal and external. Internal setup
activities are those that can be carried out only when the machine is stopped while
external setup activities are those that can be done during machining (Paneru, 2011). As
 Productivity enhancement through reduction of changeover time 19

an example, Van Goubergen and Van Landeghem (2002a) implemented SMED method
in their study and found 90% reduction in setup time in improving the system. In
addition, case studies about setup time reduction at different manufacturing environments
using SMED were studied successfully by Gilore and Smith (1996) and Tharisheneprem
(2008). They found increased machine and equipment utilisation with reduced setup time
by using SMED in their case study. However, Van Goubergen and Van Landeghem
(2002b) generalise a list of ‘design rules’ from 60 projects. The unit of analysis in these
studies is almost always a single machine setup – the wider impacts of the speedup are
not examined.
Moreover, Moxham and Greatbanks (2001) examine a small textile plant and argue
that a number of cultural, procedural, and managerial barriers must be overcome before
SMED can be implemented. Kayis and Kara (2007) improved competitiveness of a
packaging company by reducing set-up time in injection moulding process through
SMED technique. Alves and Tenera (2009) implemented SMED for injection machines
changeovers to reduce setup time in a view of performance improvement in an
automotive industry. Guo (2009) utilised SMED methodology in a world’s leading
oilfield services company to reduce CNC machine setup in the head and base machining
station affecting the manufacturing capacity. Joshi and Naik (2012) applied SMED in an
automotive small scale industry in a view of increasing output and reducing quality
losses. Loiy (2012) explored the benefit of implementing SMED within the construction
sector in the UK and Jordan. Kumar and Abuthakeer (2012) enhanced productivity of
machining section in an automotive industry by implementing SMED. Singh and
Khanduja (2012) recommended SMED to be a suitable process and service improvement
tools in medium-scale, non-ferrous piston foundry and Deros et al. (2011) reduced setup
time and at the same time manufacturing cost by using SMED technique to improve
battery assembly line in an Automotive company. Subburajan et al. (2011) improved
bottleneck in tool change and machine cycle time through SMED in order to enhance
productivity in a press business. Desai and Warkhedkar (2011) reduced adjustment time
and setup change time successfully by applying SMED technique in one manufacturing
cell in an automobile industry. Barlatt et al. (2012) improved workplace planning and
production schedule by implementing SMED lean tool, which resulted in significant
reduction in premium freight charges, overtime wages, and inventory costs in Ford motor
company. Zietsman (2011) recommended SMED technique as one of development tools
and methods in a view of waste elimination and production process flow improvement
for one company producing Ford Ranger truck (automobile). Mali and Inamdar (2012)
also reduce changeover time satisfactorily using SMED techniques of lean
manufacturing. Moreira and Pais (2011) recommended SMED as a successful implication
in an mould making firm for performance improvement; and Singh and Khanduja (2011)
made the design rules specifically for foundry dies and tooling by using SMED concept
in their study.
Furthermore, Chakravorty and Shah (2012) studied a home furniture manufacturing
operation and they suggested that operations performance can be improved significantly
by implementing several lean techniques. Miller et al. (2010) used SMED lean tool
satisfactorily in a small furniture production company with an aid in the elimination of
waste have helped the company meet ever increasing customer demands while preserving
valuable resources for future generations. Sabri and Shayan (2004) found SMED to be a
successful lean strategy for furniture manufacturing. Finally, SMED technique of
20 A. Sayem et al.

improving productivity has been successfully implemented in many studies before such
as Lasa et al. (2009) and Timasani et al. (2011).
Most of the previous studied have attempted to explain the successful
implementation of SMED to reduce setup time in various sectors like textile,
automotive, construction industry. Also, some authors suggested SMED as a lean
production tool in furniture industry, which is still struggling to reach its full potential
due to various factors inhibiting its growth. Besides, the vast majority of research in
productivity improvement by using SMED has been undertaken in the USA and UK. The
extent to which research findings in those countries can be applied to the Bangladeshi
cultural context that has yet to be widely tested. The aims of the present study are,
therefore, to minimise the existing changeover time and to evaluate its effect on
performance improvement in export-oriented furniture manufacturing company in
Bangladesh.

3 Methodology

3.1 Process overview

The studied furniture manufacturing company possesses capabilities that are fully
integrated, from designing, prototyping, material selection and moulding through testing,
assembling and distribution. They produce mainly two categories of furniture: metal
and wood. The study concentrates on the metal section (especially the metal
tube furniture), as the frequent die changes take place in this section. The raw
material used in this production area is ‘imported cold rolled MS tube’. The tube is of 20
feet long and of different diameter, is used for producing office chairs and tables, hospital
bed and chairs, dining chair and table, rocking chair, etc. This workstation is the busiest
of all of the other sections because of the increasing demand of the tube furniture. The
first step of the tube furniture production is to cut the raw material into desire length for
bending. For this high speed cutting machine is used. Next step is bending the tube. This
is done by tube bending machine (Model: SB50NC). Tube Bending Machine has three
dies, one mendel, gauges, NC input pad. These are the parts that have to be changed for
bending the product of different diameters. It takes more than six percent of total
production time. This is what can be improved by shortening the changeover time. Then
the step is drilling and boring the tubes for fixing the different part of product. Fourth
step is gas welding for fixing the metal parts. This is done by gas welding equipment.
Fifth step is phosphating where joined tube is drowned in mixed acid to remove the rust
so that the tube becomes more reliable to use. The time needed for phosphating cannot be
reduced because of constant time for every product. Sixth step is painting the joined tube.
The last step is assembly of cushion with tube by nut and bolts. After examining the
process, researcher decided to work with bending machine in which the maximum time is
spent in changeover. Figure 1 represents the process flow of tube furniture
manufacturing.

Figure 1 Process flow of tube furniture manufacturing

Cutting Bending Drilling Welding Phosphating Painting Assembly

 Productivity enhancement through reduction of changeover time 21

Figure 2 Pipe after bending, (a) four bending upper (b) four bending lower (see online version
for colours)

(a) (b)

A sample piece of pipe after bending is shown in Figures 2(a) and 2(b). Figure 3
represents a model of tube bending machine which was used for bending of metal tube
furniture.

Figure 3 NC tube bending machine (see online version for colours)

3.2 Existing condition analysis

Present study dealt with the time required in changing the bending machine setup to run
the next batch of production in the metal tube furniture production process. The bending
operation setup time was measured and recorded for statistical analysis of the data.
Standard operation procedure is reviewed briefly through process flow charting in order
22 A. Sayem et al.

to acquire better understanding of the system or process. The sequence of current

changeover procedure in NC bending machine is shown in Figure 4.

Figure 4 Flow chart of the changeover process of NC bending machine (see online version
for colours)

Dismounting Mounting of Adjusting the Dismounting the Adjusting the

the existing die new pressure die pressure die Clamping die Clamping die

Gauge Final Changing Mounting the Dismounting Mounting the

Setup Adjustment the Mendel rotating die the rotating die Clamping die

The next step is to create a data collection table and the time spent for each activity was
measured using a stopwatch and stored for further analysis. Based on the actual
production, data was collected and recorded on two different products by different
types of time loss. These methods help to identify the main contributor to high time
loss in the bending machine, and to visualise and better understand the root causes,
and finally, to find out possible solutions to the problems. Based on these, the average
work-in-process inventory due to the loss of production during changeover was
determined.

3.3 SMED application to the process

Setup operation is defined as the preparation or post adjustment that is performed once
before and once after each lot is processed. Shingo divides the setup operation into two
parts:

• Internal setup: the setup operation that can be done only when the machine is shut
down.

• External setup: the setup operation that can be done when the machine is still
running. These operations can be performed either before or after the machine is shut
down; for example, getting the equipment ready for the setup operation can be done
before the machine is shut down.

The three main steps of SMED can be summarised as follows:

Step 1 Separate internal and external activities.

Step 2 Convert internal to external activates.

Step 3 Streamlining all activities (simplify internal tasks, perform parallel tasks).

Tasks and techniques applied in each conceptual stage for the successful
implementation of SMED in the metal tube furniture manufacturing are presented in
Figure 5.
 Productivity enhancement through reduction of changeover time 23

Figure 5 SMED conceptual stages and practical techniques

STAGES Preliminary Stage 1 Stage 2
Stage Stage 3

CONCEPTUAL Internal & Separating Converting Streamlining

STAGES External Internal & Internal to all
Setup not External External Activities
distinguished Activities Activities
9 Transportation of tools 9Improving storage &
9 Transportation of dies transportation of tools & dies
9 Setups required for 9Centering & dimensioning
getting 1st quality 9 Setups required for getting
1st quality product before the m/c stops using
Practical product (scrap time
9 Adjustment of dies and marker
Techniques activity)
9 Right sequence of operating
Corresponding gauges.
to Conceptual 9 Setup of Gauges hand tools
Stages 9 NC input 9 Input data to NC m/c in
sequel at once.
9 Transportation of tools 9Implementing parallel
9 Transportation of dies
9 Mounting &
Dismounting of dies operations
9 Mounting & Dis- 9Mounting & Dismounting of
mounting of dies 9 Adjustment of dies and
External dies
9Adjustment of dies and gauges. 9Right sequence of operating
Setup
gauges. 9 Setup of Gauges hand tools
Internal 9 Setup of Gauges
Setup 9Using Vernier Bevel
9 NC input Protractor to reduce scrap
time.

4 Data analysis and discussion

The analysis of data and information gathered led to significant improvement carried out
in mechanical improvement, and organisational improvement. Comparison result before
and after SMED implementation was extensively reviewed. The bending operation of
tube metal will be further split into as listed in Table 1.
Table 1 Current proportion of setup operations

Proportion of Proportion
Operations Execution Total time Total time
Proportion internal of external
(internal and time in internal in external
of time activities to activities to
external) (minute) activities activities
total time total time
Transportation 03.13 9.14%
of tools and dies
Mounting and 03.20 9.34%
dismounting of
dies
Adjustment of 11.33 33.0% 24.94 9.30 73% 27%
dies and gauges
Setup of gauges 07.03 20.5%
NC input 00.25 0.92%
Scrap time 09.30 27.1%
Total time 34.24
24 A. Sayem et al.

4.1 Proposed steps in the setup process

The regular bending procedure took about 11 steps and 34.24 minutes to set the
die in proper position and start out the process. Hence through literature survey,
we have put in forth the advanced technique of lean manufacturing called the SMED to
simplify the tool and die changing process and also increase the production size. The
correct procedure and sequencing of setup operations to reduce the changeover time are
listed as:

1 Preparatory step consist of finding materials, jigs, gauges, etc., makes up

approximately 30% of the set-up process time.

2 Mounting and dismounting step involves work for taking cutter heads, blades, and
other similar tooling off the equipment and putting on the new required tooling that
makes up approximately 5% of the set-up process time.

3 Centring, dimensioning and setting step involves fine-tuning the tooling and
equipment to run the next. It takes approximately 15% of the set-up time.

4 Trial runs and adjustments involves the frequent trial-and-error approach to set up
the tooling and equipment to run the parts according to specifications. This step
makes up the largest single time element in most setup, approximately 50%.

After all the process is over, the regular production process starts from here.

Table 2 Current data of changeover tasks

Name of the parts or job

Operations Measuring Time for Time in
(internal and Pressure Clamping Rotating and NC 1st each
external) Mendel
die die die positioning input quality operation
gauges product
Transportation 0.083 0.380 2.670 03.13
of tools and
dies
Mounting and 1.320 1.34 0.410 0.130 03.20
dismounting of
dies
Adjustment of 2.150 2.02 0.830 6.330 11.33
dies and
gauges
Setup of 7.030 07.03
gauges
NC input 0.25 00.25
Scrap time 9.30 09.30
Total 34.24
time
 Productivity enhancement through reduction of changeover time 25

4.2 Analysing setup time

Table 2 shows the current changeover time practiced in the studied organisation. Then,
after the 1st SMED attempt the time is reduced from 34.24 min to 15.54 min as described
below.

4.2.1 Reduction of internal activities

Transportation of tools and dies: In current procedure the worker does not prepare the
required tools, tackles and dies before the changeover task. The tools and/or die are
placed in a rack away from the working machine and the worker every time took a tool
from that rack when needed. So it takes unnecessary time in transporting and arranging
tools and dies. Authors propose a SMED table, to solve the problem. The SMED table
can be defined as a movable and simple trolley on which the worker can systematically
arrange tools and dies near the bending machine, before the starting of changeover task.
As a result, the time spent in unnecessary movement of the worker during changeover
can be eliminated and right use of tools can be executed. This internal activity is totally,
i.e., 100% of the transportation of tools and dies time was converted into external
activity. As a result 12.55% time of the internal activity is transformed into external time,
which is represented into Figure 6.

Figure 6 Conversion of internal activity (transportation of tools and dies) into external activity
(see online version for colours)

In minute In percentage In minute In percentage

Internal activities : 24.94 min : 73% Internal activities: 24.94 – 3.13 = 21.81 min: 63.7%
External activities : 9.30 min : 27% External activities: 9.30 + 3.13 = 12.43 min: 36.3%

Mounting and dismounting: is totally internal activity and cannot be reduced.

Adjustment time: It means the time spent in centring, dimensioning and setting up the
position of gauges and pressure die of bending machine. If proper sequencing of
adjustment and logical procedure of operating hand tools (suggested by the researcher)
are executed, this time could be minimised by 0.42 minutes. This in-tern 1.7% time of
internal activity was reduced.

Figure 7 Conversion of internal activity (adjustment time) into external activity (see online
version for colours)

In minute In percentage In minute In percentage

Internal activities : 21.81 min : 63.7% Internal activities: 21.81 – .42 = 21.39 min: 62.48%
External activities : 12.43 min : 36.3% External activities: 12.43 + 0.42 = 12.85 min: 37.52%

Setting up of gauges: The time required for positioning the length measuring gauges
along the tube is gauge setup time. Actually these gauges indicate the position and
distance between each bent. In current situation the operator positions the gauges when
26 A. Sayem et al.

the machine is stopped. Authors suggested to use markers to indicate the position of
gauges (of next tasks), before the starting of internal changeover tasks. And can simply
replace the gauges to their new marked position during changeover. As a result
5.6 minutes of Gauge setup time (internal activity) can be minimised and a significant
amount of internal activity time (22.45%) is transferred to external activity as shown in
Figure 8.

Figure 8 Transformation of proportion Gauge setup time into external activity (see online
version for colours)

In minute In percentage In minute In percentage

Internal activities : 21.39 min : 62.48% Internal activities : 21.39 – 5.6 = 15.79 min : 46.11%
External activities: 12.85 min : 37.52% External activities: 12.85 + 5.6 = 18.45 min : 53.89%

NC input: There is option for eight data input at once in the NC-input. So this time can be
converted to external time by putting input data to the machine in sequel. This step
converted about 1% of the internal activity into external, as well as total NC input time is
now treated as external.

Figure 9 Conversion of internal activity time into external activity (see online version
for colours)

In minute In percentage In minute In percentage

Internal activities : 15.79 min : 46.11% Internal activities : 15.79 – 0.25 = 15.54 min : 45.38%
External activities : 18.45 min : 53.89% External activities : 18.45 + 0.25 = 18.7 min : 54.62%

4.2.2 Reduction of external activities

Scrap time: It is the time spent between the completion of setup process and production
of first product meeting the design specification. Simply it is the time spent in scrap
products of new production run after changeover. In current procedure the worker uses
trial and error method to ensure the first desired product by comparing the produced
product with a standard frame, and sets the NC input through assumption and practice.
For this they need at least three scrap parts, which was minimised according to author’s
suggestion by using low cost-simple and effective measuring equipment ‘Vernier Bevel
protractor’ to read the deviation from the standard frame. So the second product would be
the quality product and the scrap time can be minimised from 9.3 min to 4.3 min, which
means 46.26% of initial external time is eliminated.

Figure 10 Reduction of external activity time (see online version for colours)

In minute In percentage In minute In percentage

Internal activities : 15.54 min : 45.38% Internal activities: (unchanged) 15.54 min : 53.15%
External activities: 18.7 min : 54.62% External activities: 18.7 – 5.0 = 13.7 min : 46.85%
 Productivity enhancement through reduction of changeover time 27

After first attempt of SMED implementation a total to 37.7% (12.55 + 1.7 + 22.45 + 1) of
internal activity time was converted into external time and 46.26% of external activity
time was eliminated. At the end of this attempt the system achieved a remarkable
reduction in changeover time (from 34.24 min to 15.54 min).
Then took another chance and planned to further decrease the changeover time. In
adjustment of dies and gauges step, use of open-end wrench instead of adjustable wrench
to adjust the pressure dies of bending machine will further eliminate the time from
10.91 min to 7.71 min (reduction is 3.2 min). In setting up of gauges step sequence and
tools suggested by researcher was used. They cut down the time from 1.43 min to 1.0 min
(in this case, reduction is 0.43 min). Rest of the procedure is the same as that of the first
attempt. In this 2nd SMED attempt, the time is reduced from 15.54 min to 11.91 min,
which is 23.36%. So at the end of second SMED implementation, the changeover time
figure is 11.91 min, whereas the initial figure was 34.24. This represents a significant
(65.22%) reduction in the changeover time.

4.3 Basic calculation and tabulation

The following sub-sections shows in detail about the two different products, their
working time period in minutes and work-in process (WIP) in pieces. Also the efficiency
improvement of the studied section of the Furniture manufacturing organisation is
discussed later on.

4.3.1 Calculation of savings in productive time and reduction in

WIP inventory

Ratio of changeover time to productive time is an index of loss in productive time due to
change-over time. Average WIP inventory due to changeover time could be evaluated by
using this ratio. Calculation of the savings in productive time for SMED implementation
is reported in Table 3.

Average WIP inventory (before SMED) is

400 pcs × 0.0685 = 27.4 ≅ 28 pcs.

Average WIP inventory (after SMED) is

400 pcs × 0.0238 = 9.52 ≅ 10 pcs.

Reduction in WIP due to improvement in changeover task and activity is 28 – 10 = 18

pieces.

4.3.2 Improvement in efficiency for changeover time reduction

This is done by using worker’s salary per hour and number of machinery involved the
changeover activity. Time and money, which are completely lost since the both the
workers and machine are idle, are calculated in Table 4.
If proposed changeover methodology and recommendation would be followed, the
efficiency could be improved by 65.28%.
28 A. Sayem et al.

Table 3 Calculation of savings in productive time for SMED implementation

Ratio of Ratio of
Total
changeover changeover Savings in
productive
Product: A Product: B time to time to productive
time
productive time productive time time
TA + TB
before SMED after SMED
Standard batch Standard batch 500 min TC/ TP TC/ TP (6.85 – 2.38)
size = 200 pcs size = 200 pcs = 34.24/500 = 11.91/500 = 4.5%
Operation Operation = 0.0685 = 0.0238
time = 63 sec time = 87 sec
per piece per piece = 6.85% = 2.38%
Total Total
operating time operating time
TA = 210 min TB = 290 min

Table 4 Calculation of savings from SMED implementation

Total manpower = 18
Total no. of machines requires changeover = 8
Man-machine (M-M) ratio = Total manpower/Total machine = 18/8 = 2.25
Total number of shifts = 2; working hour in each shift = 8 hours = 480 min
Working days in a month = 26
Cost per worker = 32 BDT (per hour) = 256 BDT (per day)
Before SMED After SMED
Changeover time 34.24 min = 0.57 hours 11.91 min = 0.198 hours
Number of changeover 2 changeover in 2-shift day 2 changeover in 2-shift day
needed in a day in each
machine
Total non-value adding 0.57 × 2 × 8 × 2.25 = 20.52 hours 0.198 × 2 × 8 × 2.25 = 7.128 hours
time in all machine in a
day = (C/O time × no. of
C/O × no. of
M/c × M-M ratio)
Loss during changeover 20.52 × 32 = 656.64 BDT 7.128 × 32 = 228 BDT
per day = (time lost ×
cost of worker per hour)
Monthly loss 656.64 × 26 = 17,072.64 BDT 228 × 26 = 5,928 BDT
Amount which could be saved after SMED implementation = 11,144 BDT

5 Conclusions

The lean technique, SMED, was implemented and a significant result was achieved.
SMED methodology was applied to prepare an optimal standard procedure for
changeover operations on bending machine in metal tube furniture section that produce
products of various specifications. Based on a series of time study data collected
 Productivity enhancement through reduction of changeover time 29

during the setup activities in the bending machine, a comparison of results and
achievements before and after the SMED implementation was made to measure the
effectiveness of SMED to reduce setup time. The goal to reduce machine downtime
during the setup operations and reduction in setup time makes it possible to increase
manufacturing system flexibility to manufacture a variety of products. By implementing
the SMED techniques, the total time taken to perform setup activities was reduced from
34.24 minutes to 11.91 minutes, i.e., by 22.33 minutes. This signifies that a momentous
amount of time is being wasted due to changeover (Figure 11) and productive time has
been saved by 4.5%. Finally, it shows that if the SMED method of quick changeover
could be applied, 65.22% of time would be saved which worth 11,144.00 BDT in metal
tube furniture section (Figure 12). Other benefits achieved from SMED implementation
are quick response to customers demand, increases workers’ motivation, and parallel
operation system. This work illustrated that system is responsible for the major portion of
this waste. It also showed that waste is being done extensively due to the unavailability of
required tools in right time in right place, inappropriate working procedure, and lack of
proper maintenance in furniture industry. However, the complete success of the
application of lean viewpoint in the long run will depend on close teamwork between the
shop floor personnel and the management.
The results of this research should be used to develop policies that would lead to an
improvement in changeover activity and therefore better response to customer demand, a
decrease in the waste time, and increased profits for the organisation.
Although this study yielded important results about productivity improvement
through reducing changeover tasks and time, there is much more research to be done.
Further studies in the facility may include 5S and Kaizen studies for overall process
improvement. Alternative ways to shorten internal setups can be searched in detail. In
order to eliminate scrap time, trial and errors should be minimised.

Figure 11 Time comparison before and after SMED implementation (see online version
for colours)

Task time Saved time

40
35
30
TIME (m inute)

25 18.7
22.33
20
34.24
15
10 15.54
5 11.91
0
Before SMED Aftert 1st SMED After 2nd SMED

Change-Over Activity
30 A. Sayem et al.

Figure 12 Comparison of cost of non-value adding activity before and after SMED
implementation (see online version for colours)

adding activity (BDT)

Cost of non-value

Before SMED After SMED

Expenditure 17072 5928

Change-Over

Acknowledgements

The authors would like to acknowledge to Bangladesh Furniture Industries Owners

Association and its member concern, Navana Furniture Ltd, for their administrative,
managerial and financial supports at various stages of this research. The help extended by
Department of Industrial and Production Engineering (IPE), Shahjalal University of
Science and Technology (SUST), Sylhet, Bangladesh, during research is sincerely
acknowledged. Authors also acknowledge to Sourav Das and Md. Riasat Rahman former
students of IPE, for taking appointments and managing interviews while data collection
for this work. Moreover, authors are cordially acknowledging the reviewer(s) effort in
publishing the article.

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