This document discusses applying the principles of Single Minute Exchange of Die (SMED) beyond manufacturing to non-manufacturing sectors. SMED aims to reduce changeover times by distinguishing between internal activities that require stopping production and external activities that can be done in parallel. The document provides examples of applying SMED thinking to railway transportation, construction, and loan financing. Specifically, it examines applying SMED to truck transportation on railway cars, push-pull train arrangements, ready-mix concrete, and pre-approved loans. The conclusion is that perceiving processes through a SMED lens can help reduce waste of resources like time and space in non-manufacturing sectors as well, with some customization. Further research could study a

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Applicability of Single Minute Exchange of Die (SMED) Philosophy for
Non- Manufacturing sectors.
*Vivek P. Nerurkar
Abstract:
Value Creation is a key word in every aspect of Business, be it Manufacturing or Service sectors.
It indirectly leads to practices which eliminate or reduce waste, during manufacturing and also
while delivering the product / service. Conventionally, Single Minute Exchange of Die (SMED)
is a popular tool confined to Lean Manufacturing that to Batch type production.
SMED empowers the user to distinguish and identify activities as Internal (Activities which can
be conducted when process under consideration, is stopped. E.g. the Press is stopped when die is
being adjusted and set on the bolster) and External (Activities which can be conducted when
process under consideration is on i.e. when previous batch is on or when next batch is being
produced. E.g. the Press is operating, when die required for next batch is being cleaned, lubricated
and prepared.)
This paper is an attempt to project SMED as a resourceful tool, which can go beyond
manufacturing. Examples from various industry Domains like Railways, Construction, Loan
Finance with particular emphasis on Supply Chain, Passenger Transport through Railway, Pre-
approved Loans are considered here. This may possibly lead to paradigm shift of looking at
SMED, more than just as Lean Manufacturing (that to Batch type Production) tool. This will also
open opportunities to extract benefits of SMED tool in other fields like Marketing, Financial
Services etc. with some local customisation or innovation.
Key words: Value Creation, Lean Manufacturing, Internal Activity (IA), External Activity (EA),
Innovation
*Prof. Vivek P. Nerurkar, Assistant Professor, Lala Lajpatrai Institute of Management, Mumbai.

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Introduction:
Conventional understanding of SMED
SMED stands for Single Minute Exchange of Die, a systematic approach to change-over and set-
up time reduction. SMED is an acronym that made its way into industrial term for decades now.
Its origins is in Japanese automotive industry of the 1950s when Toyota Production System
pioneers led by legendary Shigeo Shingo observed operations on shop floor.
Exchanging a die (weight in tons) of a huge press took hours, letting the machine – a valuable
resource – stopped and producing no added value. Diminishing the changeover time, allowed to
convert wasted time into value adding time. “Single Minute”, does not mean in less than a minute,
but in a time measured on a single digit, thus between 0 and 9 minutes, or put in the pioneers’
spirit in less than 10 minutes.
SMED is one of the Lean Manufacturing tool to reduce waste in manufacturing.
• Internal activities: Activities which can be conducted when process under consideration,
is stopped.
• External activities: Activities which can be conducted when process under consideration
is on i.e. when previous batch is on or when next batch is being produced.
After analysing the changeover process, the thorough elimination or reduction of unnecessary
tasks and better organization, cut the duration of a changeover from hours to minutes.

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Fig.1 Piggyback Transportation (RORO) Fig.2 Push- Pull arrangement
Fig.3 Ready Mixed Concrete

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Existing applications – Perceived through SMED Paradigm
Classic Changeover
Most often, the changeover happens like the time chart below shows. It starts when the last part
from actual production batch is finished and ends when the first part from new production batch
is ready to be processed at normal pace.
Breakdown of changeover process:
(Machine stopped)
The machine is usually stopped and all changeover operations happen in sequence, while the
machine is stopped. The machine will start again only after completion of adjustments and trials.
Sometimes after quality check and when the appointed staff gives “it’s ok”.
Understanding of SMED for typical Press shop environment:
Consider a change over process, comprising of ten activities. It is represented diagrammatically
on time scale, as shown below-
Four steps to SMED
By hunting down all causes of time waste, the SMED team advices a sequence of four steps to
reduce change-overs.
Finishing
actual
batch
Dismount
tools
Change
tools
Adjustments Trials
Process
new batch
Change over
steps

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The first obvious thing noticed by the engineers was that during changeovers and setup the
machine was stopped, even for operations that were totally independent of the machine itself, like
preparing tools, dies or various supplies.
This led to the first step of the SMED approach:
Step1- Discriminate operations that must be done while machine is stopped, called internal
activity (IA). Activities which are carried out while machine runs, are called external activity
(EA).
For a typical press shop set up environment, External Activities are related to following areas:
 Tools, parts
 Instructions
 Lifting material
 Pre-assemblies
Activities related to above areas, can be treated as E.A. This is addressed in Step 2.
Step 2- Convert IA into EA and suppress non-value adding operations. Here, apparently IA are
converted in to EA. It leads to immediate effect of reduced time, for which machine (or process)

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is stopped.
Step3- Simplify and standardise IA. Which further reduces process time, as shown below.
For a typical press shop set up environment, time required for IA can be reduced by simplifying
fittings and tightening, in ways mentioned below-
 Suppress fittings and tightening partially or even totally
 Minimize “turning” movements: they request several grasp-release motions!
 Fit at once, in a single motion
 Use blocks, jigs, templates
 Standardize tools, types and size of screws, nuts
 Go for ideal: use only one type of screwdriver or wrench, challenge to suppress all tools
Once the die, fixture or template for the new batch is set, it is usual to have several adjustments
to go through. These adjustments are also time-consuming and extending the duration of machine
stoppage. Adjustments are to be considered as waste. Would the setting be done properly, the
adjustments wouldn’t be necessary.
 Set standard values
 Find out adjustment-less methods through physical means, like stoppers, guides, blocks
 Design custom-made tools if necessary

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Step 4- Simplify and standardise external activities (EA). Suppress adjustments and trials.
By improving and standardisation with respect to Tools and parts, Instructions, Lifting material,
Pre-assemblies we can reduce EA time.
(Following pages narrate various cases, related to SMED from Supply Chain, Finance, and
Transportation)

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Cases:
Process improvement cases perceived through SMED paradigm:
1. Truck loaded with goods Fig. 1, directly moved through railway flat wagons-
Piggyback transportation
Here moving of goods is “Process under consideration”.
In conventional mode, goods are moved through trucks (near source) to railway yard.
Then they are unloaded from trucks and loaded on railway wagons. As they reach
destination, goods are unloaded from wagons and loaded back on trucks (at destination)
there. (See block diagram below)
Conventional mode:
Modified mode: Piggyback transportation (RORO)
Loading and
unloading goods
from truck AT
SOURCE
Loading and
unloading goods
from Railway
wagon
Loading goods on
truck AT
DESTINATION
Loading goods on
truck AT
SOURCE
Loading truck on
Railway flat
wagon
Moving truck from
flat wagon TO
DESTINATION
Resource
Required
for Loading
and
unloading
Resource
required for
unloading
and loading
Resource
required for
unloading
and loading
Resource
Required
for Loading
and
unloading
Resource
required for
unloading

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From Supply chain point of view, as soon as goods/ consignment stop moving, cost
component is bound to increase.
Here, activities required for transporting goods, are classified as Internal and External,
based on goods movement. The activity which stops goods’ movement is Internal Activity.
And activities which can be continued, even when goods are moving towards destination,
are External Activities.
Loading and unloading activity is Internal. Practically, if any of the two is delayed by some
or other reason, core objective of efficient transportation is affected adversely.
In conventional mode, more of loading and unloading poses a challenge for efficient
transportation.
In modified mode, loading and unloading is reduced. That results in efficient transportation
and less resource requirements.
Advantage: The carriage of trucks on RORO (Roll On Roll Off -
Piggyback transportation) increases trucker earnings by improving turnaround time --the
transit time of trucks in the Mumbai–Goa section on RORO is 30% of that on road.

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2. Railway diesel engine is shunted in “Push –Pull” arrangement Fig. 2, to save time while,
changing direction of the train journey-
In this case, “changing direction of train journey” is process under consideration. Activity
which stops or delays direction of train’s journey, is Internal Activity. When the train
completes journey from destination 1 to destination 2, in normal arrangement, diesel engine is
loosened and taken to other end of the train. Here train is ready to move from destination 2 to
1.
This normal arrangement takes time for loosening and shunting the engine, moving it from
one end to another. It also requires clear line, for engine to move from one end to another.
New arrangement positions the diesel engine at the centre of train. Control cabins are provided
at either ends of the train. Here we avoid time loss in loosening, shunting and engine
movement. Corresponding saving of fuel is observed. Internal Activity is converted in to
External Activity.
Normal arrangement – Engine shunted at fore front of the train
Here, movement of the engine from End2 to End1 becomes Internal Activity (IA).
PUSH-PULL arrangement- Engine is shunted at the centre, with control cabins on either
sides of the train.
Engine movement (shunting) becomes External Activity (EA).
Journey
completed from
destination1 to
destination 2
Engine is
loosened
from End 2
Engine is
moved to
another
track
Engine is
moved to
End 1
Engine
shunted at
End 1, ready
for return
journey
Engine is
shunted at
the centre
Journey
completed from
destination1 to
destination 2
Ready for
return journey

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3. Ready-Mix Concrete (RMC):
The process of RMC Fig. 3 is offering many advantages to construction industry. Few of
its advantages are – Consistent quality, faster process, no wastage of material, storage of
materials at site is not required.
If we look at this application through paradigm of SMED, then we can compare RMC
against On-site concrete with the help of following block diagram-
On-site concrete
Here making of concrete is Internal Activity (IA).
RMC
Here making of concrete is External Activity (EA).
Advantage: 10 to 12 % reduction in cement consumption. Saving storage place.
Improved quality of mixture. Better quality control.
Raw material
storage at site
Raw material
taken in
proportion at site
Mixing is done
Concrete is
used at location
Ready Mixed
concrete from
vendor
Concrete is used
at location

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4. Pre-approved loans- Company Bajaj Finserv offers financial service of pre-approved
loans for various personal needs. It can be perceived through SMED Paradigm.
Conventional procedure for loan sanctioning -
Internal Activity
Here activity of loan sanctioning is Internal Activity. It is initiated when client requires
loan for purchase of certain goods. Till loan is not sanctioned, purchasing activity gets
delayed.
Pre-approved Loan process –
Here activity of loan sanctioning is carried out at a convenient time, well ahead of actual
goods purchase. So it becomes External Activity (EA). When goods are to be purchased,
pre-approved loan is immediately disbursed.
External Activity
Advantage: Opportunity to purchase can be timed, Hassle-free loan disbursement,
Cycle time for loan sanctioning gets reduced.
Loan
application
from client
Documents
receiving and
verification
Loan
eligibility
decided
Loan
sanctioned
and ready to
be disbursed
Actual loan
disbursement
against goods
purchased
Loan
application
from client
Documents
receiving and
verification
Loan
eligibility
decided
Loan
sanctioned
and ready to
be disbursed
Actual loan
disbursement
against goods
purchased

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Conclusion:
From the discussion and various examples mentioned above, it will be very interesting to
understand and perceive SMED tool applicable to non-manufacturing sectors-
1. Wherever we can apply process approach, implementing SMED can lead to value addition.
2. Various scares resources like time, space, money are conserved.
3. Cycle time to deliver product/service gets reduced.
4. In all, benefits of SMED can prove boon to non-manufacturing sectors also, with some
local customisation or innovation.
Further scope for research:
In this paper, an attempt is made to use SMED tool for non-manufacturing sectors. SMED
philosophy can prove an avenue for bettering processes (value creation) in non-manufacturing
sectors. For this, a case/ issue from non-manufacturing sector can be studied in depth, to take this
concept further, benefiting non-manufacturing sectors.
Reference:
1. http://thinkinglean.com/Volume_3_Issue_2_icerik156.html
2. http://www.lafarge.in/wps/portal/in/3_A_2_2-Site_mix_vs_ready_mix
3. http://articles.economictimes.indiatimes.com/2003-05-09/news/27548322_1_freight-
container-traffic-railway-plan
4. Book- Title: Gemba Kaizen by Masaki Imai