7 Principles of Toyota Production System (TPS)

Reduced Setup Times: All setup practices are wasteful because they add no value and they tie up labor
and equipment. By organizing procedures, using carts, and training workers to do their own setups, Toyota managed to slash setup times from months to hours and sometimes even minutes.

Small-Lot Production:

Producing things in large batches results in huge setup costs, high capital cost of high-speed dedicated machinery, larger inventories, extended lead times, and larger defect costs. Because Toyota has found the way to make setups short and inexpensive, it became possible for them to economically produce a variety of things in small quantities. Toyota organized their workers by forming team and gave them the responsibility and training to do many specialized tasks. Teams are also given responsibility for housekeeping and minor equipment repair. Each team has a leader who also works as one of them on the line. possible. Since workers are at the best position to discover a defect and to immediately fix it, they are assigned this responsibility. If a defect cannot be readily fixed, any worker can halt the entire line by pulling a cord (called Jidoka).

Employee Involvement and Empowerment:

Quality at the Source: To eliminate product defects, they must be discovered and corrected as soon as

Equipment Maintenance: Toyota operators are assigned primary responsibility for basic maintenance
since they are in the best position to defect signs of malfunctions. Maintenance specialists diagnose and fix only complex problems, improve the performance of equipment, and train workers in maintenance.

Pull Production: To reduce inventory holding costs and lead times, Toyota developed the pull production
method wherein the quantity of work performed at each stage of the process is dictated solely by demand for materials from the immediate next stage. The Kamban scheme coordinates the flow of small containers of materials between stages. This is where the term Just-in-Time (JIT) originated.

Supplier Involvement: Toyota treats its suppliers as partners, as integral elements of Toyota Production
System (TPS). Suppliers are trained in ways to reduce setup times, inventories, defects, machine breakdowns etc., and take responsibility to deliver their best possible parts.

SMED - Setup Reduction

This page was created and maintained by Dr. Chao-Hsien Chu at the School of Information Sciences and Technology, The Pennsylvania State University, USA.He will continually update the page as his time permitted. Thanks for your visit. Mail your comments and suggestions to: chu@ist.psu.edu.

What is SMED?
SMED, stands for Single-Minute Exchange of Die, is a theory and techniques for performing setup operations in under ten minutes, i.e., in a number of minutes expressed in a single digit. The SMED method was revolutionized by Mr. Shingo since 1950 in Japan. The concepts and techniques became available to other countries started around 1974 in West Germany and Switzerland and in 1976 in Europe and United States. However, not util 1980s, the SMED technique getting acceptace to companies outside Japan.

Components of Lead Time

In manufacturing, lead time was consided starting from design until deliver the products or services to the customers. Thus, the lead time consists of the following time elements: Product Development (Design) Lead Time. Sourcing (Purchasing) Lead Time. Manufacturing (Production) Lead Time. Order Processing Lead Time. Distribution Lead Time. Other (e.g. decision making, coordination) Lead Time. Clearly, Production lead time is only a small portion of the whole lead time, but it is the only component which is controllable by production function. The production lead time can be further divided into: Queue Time Before Processing. Setup Time. Run (Processing) Time. Waiting Time after Processing. Move Time. Among these time elements, run time is the only portion that adds values to the products. Others can be considered as a waste.

Effects of Setup Reduction

Setup reduction may bring the following impacts to the shop floor: Lot-size can be reduced. Help to reduce inventory. Reduce the cost of setup labor. Increase the capacity on bottleneck equipment. Help to eliminate the setup scrap. Reduce the potentail Quality problems and obsolescence.

Alternatives for Setup Reduction

SMED is not the only approach for reducing setup time. Some other alternatives are: Production Planning - reduce the number of setups. Group Technology / cell foramtion - reduce the number of setups Design Standardization - reduce the number of setups. Use Standard Module - reduce the number of setups. Work Simplification. Mechanization or automation - an expensive option.

Procedures for Setup Reduction

SMED can be conducted according to the following steps: 1. 2. 3. 4. Form the setup reduction team. Conduct training and education. Study the setup process (e.g., use video tape). Classify setup operations into waste, internal setups (IED), and external setups (OED). Waste - Operation which do not add values to the setup. Internal Setups - Operations that can only be performed while the machine is shut down. External Setups - Operations that can be performed without shutting down the machine. 5. Eliminate the waste. 6. Convert as many internal setups as possilbe to external setups. Use standard insert module. 7. Improve internal setups (include adjustment). Use specially designed cart to organize tools. Use quick-release fasteners instead of bolts and nuts. Use stoppers to quickly position the jigs. Use rolling bolsters instead of cranes. Use overhang mechanisms to handle heavy jigs. Use locating pins and holes (socket) to eliminate the adjustment. Use standardized die height. 8. Improve external setups. Apply visual control principles. Use checklist to avoid omission. Use specially designed cart to help organize tools. Organize workplace (5S) to reduce search. 9. Develop the standard operating procedure (SOP). 10.Evaluate the performance of setup reduction. 11.Prepare for the next setup reduction project.

Toolkits for Setup Reduction

Many toolkits can be applied to help setup reductions. For instance: Visual Control. Checklist. Specially designed setup cart. Workplace organization (5S). Railed cart.

 Standardized baseplate and socket. Attachment plate. Overhang tools. Quick fasteners -- clamping cam, crank, clamping (lock) lever. Standardized die height. Locating pins. Stopper.

Articles:
1. Heard, Ed L., "Shorter Manufacturing Cycles = Increased Market Share," Zero Inventory Philosophy and Practices Seminar Proceedings, American Production and Inventory Control Society, Falls Church, VA, 1984, pp. 10-18. 2. Karmarkar, U. S., "Controlling W.I.P. and Leadtimes in Job Shops," Zero Inventory Philosophy and Practices Seminar Proceedings, American Production and Inventory Control Society, Falls Church, VA, 1984, pp. 156-161. 3. Hay, E. J., "Reduce Any Setup by 75%," Zero Inventory Philosophy and Practices Seminar Proceedings, American Production and Inventory Control Society, Falls Church, VA, 1984, pp. 173-178. 4. Wantuck, K. A., "Setup Reduction for Quality at the Source," Zero Inventory Philosophy and Practices Seminar Proceedings, American Production and Inventory Control Society, Falls Church, VA, 1984, pp. 179-183. 5. Mickelsen, E. E., "Set-up Reduction Effects on Economic Order Policy," Zero Inventory Philosophy and Practices Seminar Proceedings, American Production and Inventory Control Society, Falls Church, VA, 1984, pp. 437-443.

Books:
1. Bockerstette, J. A., Time Based Manufacturing, Industrial Engineering and Management Press, 1993. 2. Charney, C., Reducing Product Lead Time, 1st ed. Society of Manufacturing Engineers, 1991. 3. Claunch, J., Set-up Time Reduction, Irwin, 1996. 4. Harrison, A., Just-in-Time Manufacturing in Perspective, The Manufacturing Practitioner Series, Prentice Hall, 1992. pp. 113-123 (Chapter 5). 5. Handfield, R. B., Re-Engineering for Time-Based Competition: Benchmarks and Best Practices for Production, R & D, and Purchasing , Quorum Books, Conn., 1995. 6. Hirano, H., JIT Factory Revolution: A Pictorial Guide to Factory Design of the Future, Productivity Press, Portland, OR, 1987. pp. 144-157 (Chapter 10). ($50)

7. Hirano, H., JIT Implementation Manual: The Complete Guide to Just-in-Time Manufacturing, Productivity Press, Portland, OR., pp. 591-642 (Chapter 11). ($975) 8. Hoffman, E. G., Setup Reduction Through Effective Workholding , Industrial Press, NY., 1996. 9. Irwin, Inc., Time-Based Competition: the Next Battleground in American Manufacturing, Irwin, 1991. 10.Kobayashi, I., 20 Keys to Workplace Improvement, Productivity Press, Portland, OR, 1995. (Key 5). ($50) 11.Monden, Y., Toyota Production System: An Integrated Approach to Just-InTime, Second Edition, Industrial Engineering and Management Press, Norcross, GA, 1993. pp. 105-144 (Chapters 7, 8 & 9). 12.Northey, P. and Southway, N., Cycle Time Management: The Fast Track to Time-Based Productivity Improvement, 1993. ($30) 13.Sekine, K. and Arai, K., Kaizen for Quick Changeover: Going Beyond SMED,Productivity Press, Inc., Portland, OR. 1992. ($75) 14.Shingo, S., A Revolution in Manufacturing: The SMED System,Productivity Press, Inc., Portland, OR. 1985. ($75) 15.Shingo, S., Quick Changeover for Operators: The SMED System,Productivity Press, Inc., Portland, OR. 1996. ($25)