Set Up Reduction

Setup Reduction
Copyright © 2001-2007
Six Sigma Academy International, LLC
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The Breakthrough Strategy®
And The Improve Phase
1. Select Output Characteristic • Setup Reduction is key
2. Define Performance Standards to the Improve Phase
but could also be
3. Validate Measurement System applied in Steps 4 and 6
4. Establish Baseline Process Capability
• As it can be useful in
5. Define Performance Objectives establishing the
6. Identify Variation Sources baseline capability, it
also clearly applies to
7. Screen Potential Causes
Step 11
8. Discover Variable Relationships
9. Establish Operating Tolerances –
Implement Improvements
10. Validate Measurement System
11. Determine Final Process Capability
12. Implement Process Controls
Six Sigma Academy International, LLC Setup Reduction Pg 1
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Module Objectives
By the end of this module, the participant will be able to:

• Define Setup Reduction
• Explain the importance of Setup Reduction
• Describe Setup Reduction rationale
• Explain components which drive Setup Reduction
• Utilize Setup Reduction techniques to minimize equipment/process
downtime associated with changeover
• Describe the steps to reduce changeover time
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What Is Setup Reduction?
• Team based improvement activity

• Systematic approach to significantly reduce setup and changeover time
• Maximize the amount of time a given process or piece of equipment is up
and running
• Minimize the time it takes to change from one process to another
Example: How well does your

organization transition from
one shift to the next?
$$$ Time is Money $$$

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Why Is Setup Reduction Important?
Setup Reduction provides us with the opportunity to changeover a

process more frequently, which…
Creates smaller batch sizes
Which lowers required inventory
Which allows for better quality control
Which reduces waste
and
Provides greater flexibility
to
Reduce lead time
and
Provide On-Time Delivery
…ultimately gives us a competitive advantage.
Setup requires understanding the true changeover time,
identifying and classifying tasks, and moving as many
tasks before or after the actual changeover as possible.
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Setup Reduction In A Retail Environment
Reduce time required to change from one process or activity to the next
Examples:
• Changing shifts (shift end cash out and start-up of next shift)
• Changing out shelf/floor displays
• Changing various condiments/fountain drink supplies
• Opening/closing stores
• Changing prices
• Filling prescriptions
• Restocking shelves
• Replenishing inventory
• Designing/Planning/Publishing advertisements
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Setup Reduction Rationale
Lower Setup Times
Increase Equipment More Frequent

Utilization Setups
Reduce Overtime Smaller Batch Sizes
Increase Capacity Shorten Lead-times
Competitive Advantage
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Reducing Batch Sizes
• Based upon individual

equipment costs not overall
customer demand
• Simple trade-off
• Equal Order Quantity $
(EOQ)/Equal Batch Quantity Total
Cost Inventory
(EBQ) Minimum cost point Curve Holding
between setup and Cost
inventory holding
Minimum
Set-Up or
Total Cost
Ordering Cost
EOQ Batch
EBQ Size
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Case For Reduced Batch Sizes
Total Inventory
Cost Holding Cost
Minimum
Total
Cost
Reduced
Changeover
Costs
Updated Original Batch
EBQ EBQ Size
Batch size could significantly impact costs.

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Balancing Setup Time vs. Cost
• Inventory holding cost should include the opportunity cost of all problems
that inventory masks
• Setup time and cost (including ordering costs) can be reduced by
applying skill
Result: Small batch quantities are economically justifiable.
Does it make sense to carry a large

inventory of meats at a grocery store?
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Process Areas Of Focus
Cycle Time Components for a Single Operation
Queue Setup Run Wait Move
Required Required Required

Activity Activity Activity
• Queue, Wait, and Move are the easiest components to minimize
(Remember: This is defined as “waste”)
• Actual time consumed is inherently decreased proportional to the
reduction in batch size
• Setup time reduction typically requires a focused effort
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Problems Driven By Setup
Changeover Reduction Resource allocation

Operation Multi-Disciplinary Approach problems; Work
Control
activity tracking issues
Equipment Wear and tear

Maintenance problems
First off and batch

Quality
testing activity
Setup Process
Tool service Tool handling and
service activity
Work handling activity

Materials
new material control
Human
Training
Resources
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Internal vs. External Activities
Internal External
Activities Activities
Tasks which require Tasks which can be
the equipment/process done as the process
to be stopped. runs the previous job.
Attach
Prepare
Detach
Examples: Examples: Organize
Adjust
Transfer
• Remove work-piece Test • Retrieve materials
• Remove tools • Retrieve tools
• Remove guarding • Prepare tools
• Adjust locations • Clean up
• Test workplace • Organize and Plan
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Setup Reduction High-Level Approach
1. Separate internal from external time
External Internal External
2. Convert internal time to external time
3. Reduce all remaining time
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Typical Changeover Time
Allocation By Task Grouping
50
45
% of Total Changeover Time
40
35
30
25
20
15
10
Check Installation Locating Adjustment Final

Organization and What We of Settings Adjustments
Removal Need
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Setting An Improvement Target
• Observe the setup process (internal/external)

• Videotape where possible
• Record problems/ideas
• Brainstorm/analyze each element
• Identify opportunities for improvement
• Determine how much improvement is
necessary to meet the goals of the project
• Communicate improvement targets
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Preliminary Stage
• Determine business need

for change
• Establish appropriate
performance measures
• Assess potential
obstacles/conflicts
• Identify bottlenecks, for starters
• Establish task force team
including Process Owner
• Communicate objectives
• Train individuals
For a clear path to success in process improvement, setting
the stage is very important!
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Steps To Setup Reduction
1. Document Current Process

2. Separate Activities (Internal
vs. External)
3. Shift Activities from Internal
to External
4. Locate Parallel Activities
5. Streamline Activities
6. Implement Improvement Plan
7. Validate Procedure/Verify Results
8. Document “New” Procedure
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Step 1: Document Current Process
• Steps
- Record each work element by sequence and time taken
• (Setup Documentation Form, Appendix B)
- Classify each element by category
- Pareto analysis to rank categories
- Prioritize elements/categories for reduction
• Techniques
- Stopwatch/traditional work-study techniques (potentially inaccurate)
- Video tape recording (accurate, repeatable, irrefutable,
comprehensive, interactive)
- Observation/discussion (to identify exceptional circumstances)
• Critical Success Factors
- Open study
- Non-critical
- Operator involvement, understanding and ownership
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Setup Documentation Form
SETUP DATA SHEETS DATE
Process SHIFT
NAME
TASK START TIME END TIME DURATION COMMENTS
Set_Up_Documentation_Form.xls (see also Appendix)

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Step 2: Separate Internal
And External Activities
Internal External
Activities Activities
Tasks which require Tasks which can
the equipment/process be done as the
to be stopped. process runs the
Attach previous job. Prepare
Detach
Organize
Examples: Adjust Examples: Transfer
Test
• Remove work-piece • Retrieve materials
• Remove tools • Retrieve tools
• Remove guarding • Prepare tools
• Adjust locations • Clean up
• Test workplace • Organize and Plan
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Step 3: Shift Internal
Activities To External
Each element of the internal setup should be examined and if possible be
converted to an external function.
Obvious Targets:
• Preparation • Using intermediary devices

• Pre-loading of information • Using aids
• Pre-setting of materials and • Using computer based organized
functional dimensions/elements tool/fixture/part storage
Prepare for Operating

Conditions in Advance
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Step 4: Locate Parallel Activities
• Parallel activities are independent of each other and can be

performed simultaneously
• Changeover time can be reduced by more than half by doing jobs
in parallel
• A team approach is necessary to accomplish activities in parallel
Internal
External
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Step 5: Streamline
Internal/External Activities
1. Parallel Operations • Positive location to fixed points
• Standardized “functions” dimensions
2. Location and adjustment • Location lines/gauges/positioning

“Single Action Location” • Fool proofed orientation
• Easy movement of equipment/material
“Adjustment elimination” (rollers, quick connects)
3. Tool Clamping • Minimized clamping/securing points

“One turn attachment” • Standardized holding devices
• Split threads, U-washers, hollow sleeves
4. Process • Standardized “functional” tool dimensions

“Adjustment reduction/elimination • Positive location to gauges
• Marked dials/levers
5. Guarding
• Minimized/standardized securing
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Step 5: Streamline Internal/External
Activities (Cont’d)
6. Transport • On line material/tool storage
• Roller conveyors
• Adjustable height tool trolleys
7. Workplace organization • Standardized hand tools

• Color coding hand tools
8. Planning and Organization • Simple controls to coordinate

external activities
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Step 6: Implement the Plan And
Chart Progress
• Test procedure
• Determine the total time for the Changeover Improvement Progress
longest internal procedure
• Implement Changes
Time
• Compare the changeover time
before (baseline) and after Current New Test
State
changes were implemented Date
• Verify Results
• Graph the Results Charting of Each Set-Up
of Improvement
Appendix
Do the changes truly improve Set_up_reduction_chart.xls

(see also Appendix)
the changeover time?
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Step 7: Verify Results
• Validate procedures
• Verify results to assure objective is met
• Make adjustments, if necessary
• Communicate improvements
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Step 8: Document Procedure
Document new procedures

• External steps
• Internal steps
• Parallel activities
Internal Internal Checklist

1. Power down
In Production 1 2 3 In Production 2. Load Material
3. Make
adjustments
External External Checklist

1. Gather materials
1 2 Internal Setup 3 4
2. Premix materials
3. Put away tools
4. Clean area
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Setup Reduction Continuous Cycle
ACT 8. Document New Procedure
CHECK 7. Validate Procedure/Verify Results
6. Implement the Plan
5. Streamline Internal/External Activities

DO
4. Locate Parallel Activities
3. Shift Internal Activities to External
2. Separate Internal and External Activities
PLAN 1. Document Current Changeover Elements

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Continuous Improvement
History of Setup Reduction on Retail Store Displays

>3 hours
Large reductions
possible just through
3 separation of external
and internal activities
Setup Time (hours)
with zero cost.

2 hours
Improvement of internal setup.

2
1.5 hours
Smaller gains through detailed
80 min study and focused investment.
1.3
hours
35 30 25 Continuous
40 min. 8
1 Improvement
Target
5/3 7/23 8/13 8/30 10/9 10/25 11/9 11/10 12/8 2/3
Date
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Key Learning Points
•
•
•
•
•
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Objectives Review
The participant should now be able to:

• Define Setup Reduction
• Explain the importance of Setup Reduction
• Describe Setup Reduction rationale
• Explain components which drive Setup Reduction
• Utilize Setup Reduction techniques to minimize equipment/process
downtime associated with changeover
• Describe the steps to reduce changeover time
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APPENDIX: Forms
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Setup Documentation Form
SETUP DATA SHEETS DATE
Process SHIFT
NAME
TASK START TIME END TIME DURATI ON COMMENTS
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Setup Reduction Chart
6
H
O 5
U
R 4
S
3
1
CHANGEOVER OCCURRENCES
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Scottsdale, Arizona 85254
Tel. (480) 515-9501 • Fax (480) 515-9507
www.6-sigma.com
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Breakthrough Change Strategy , Breakthrough Design , Breakthrough Diagnosis , Breakthrough Execution , Breakthrough Sigma Lean , Breakthrough Six Sigma ,
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Setup Reduction

By the end of this module, the participant will be able to:

• Team based improvement activity

Example: How well does your

$$$ Time is Money $$$

Setup Reduction provides us with the opportunity to changeover a

Lower Setup Times

Increase Equipment More Frequent

Reduce Overtime Smaller Batch Sizes

Increase Capacity Shorten Lead-times

• Based upon individual

Batch size could significantly impact costs.

Result: Small batch quantities are economically justifiable.

Does it make sense to carry a large

Cycle Time Components for a Single Operation

Queue Setup Run Wait Move

Required Required Required

Changeover Reduction Resource allocation

Equipment Wear and tear

First off and batch

Work handling activity

1. Separate internal from external time

External Internal External

2. Convert internal time to external time

External Internal External

3. Reduce all remaining time

External Internal External

Check Installation Locating Adjustment Final

• Observe the setup process (internal/external)

• Determine business need

1. Document Current Process

SETUP DATA SHEETS DATE

TASK START TIME END TIME DURATION COMMENTS

Set_Up_Documentation_Form.xls (see also Appendix)

• Preparation • Using intermediary devices

Prepare for Operating

• Parallel activities are independent of each other and can be

2. Location and adjustment • Location lines/gauges/positioning

3. Tool Clamping • Minimized clamping/securing points

4. Process • Standardized “functional” tool dimensions

7. Workplace organization • Standardized hand tools

8. Planning and Organization • Simple controls to coordinate

changes were implemented Date

Do the changes truly improve Set_up_reduction_chart.xls

Document new procedures

Internal Internal Checklist

External External Checklist

ACT 8. Document New Procedure

CHECK 7. Validate Procedure/Verify Results

6. Implement the Plan

5. Streamline Internal/External Activities

3. Shift Internal Activities to External

2. Separate Internal and External Activities

PLAN 1. Document Current Changeover Elements

History of Setup Reduction on Retail Store Displays

with zero cost.

Improvement of internal setup.

The participant should now be able to: