Single Minute Exchange of Die and Organizational Innovation in Seven Small and Medium-Sized Firms

Abstract

Innovation plays a very important role in businesses competitiveness. As Small and Medium-sized Enterprises (SMEs) stem for more than 95 % of the industrial fabric in the developed world, the improvement of the industrial production or the provision of a service are key to increase their productivity and competitiveness. The Single Minute Exchange of Die (SMED) is a Japanese process-based innovative methodology that involves the separation and conversion of internal setup operations into external ones. The SMED makes it possible for firms to reduce their lead times and to eliminate wastefulness during changeover activities. Although organizational innovation is a very important tool, it plays a silent role in productivity improvement, as it is less tangible than product or process innovation. Moreover, studies about SMED implementation and how teams have managed to achieve their results are still very limited among SMEs. The main objective of this chapter is to provide the results of seven projects involving business-university partnerships addressing this understudied topic: SMED implementation and organizational innovation in SMEs. The main finding of this study is that all firms managed to improve their setup times, although the results vary extensively. From the organizational innovation point of view, only one firm failed to intertwine the initiation and the implementation stages. Although all firms have initiation-implementation routines, there are clear differences among them. As a result, although it is possible to claim that all SMEs analyzed are ambidextrous organizations, their initiation-implementation routines, deserve deeper comprehension.