Short setup time is an essential element for the effective implementation of many lean pillars, i.e., JIT, and Kanban. Most of the current setup reduction methodologies are based on Shingo’s Single Minute Exchange of Dies (SMED) that suggests the conversion of internal setup operations to external operations. However, the conventional SMED approach – as proposed by Shingo – does not possess a systematic approach to accomplish this conversion. Thus, a new approach is proposed in order to aid the process engineers in implementing SMED. The proposed approach is based on the conventional SMED, but also it incorporates Multiple Criteria Decision-Making Techniques (MCDM) to the third implementation phase. The MCDM techniques used in this work are Analytical Hierarchal Process (AHP), Preference Selection Index (PSI) and Technique for Order Preference by Similarity to Ideal Solution (TOPSIS). The proposed approach provides a systematic procedure for selecting the best setup technique among the available alternatives, and takes also into consideration other factors that affect the decision-making process; including: cost, energy, facility layout, safety, life, quality and maintenance. A real example of PVC industry is used to exemplify the approach. The results demonstrate the capability of the proposed approach in setup time reduction, which in turn will improve machines’ utilization, and increase the productivity and flexibility of the whole facility.
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