Setup Time Reduction (SMED)

Quantify SMED savings by splitting internal and external setup activities, then project annual time and cost impact.

Current Setup Breakdown

Improvement Targets

%

Volume & Cost

1

Convert External Activities

Move all external activities to pre/post-setup. Machine is only stopped for internal work.

Before
90
min / setup
After Step 1
60
min / setup
Saved
30
min / setup
2

Streamline Internal Activities

Reduce remaining internal time through improved fixtures, standard work, and parallel tasks.

After Step 1
60
min / setup
After Step 2
42
min / setup
Saved
18
min / setup

Annual Impact Summary

Total time saved / setup
48
minutes
Reduction from baseline
53%
of original time
Annual hours recovered
800
hours / year
Daily OEE availability gain
13.3%
of 24 h
New total setup time (after both steps)
42 min
down from 90 min

Summary

Quantify SMED savings by splitting internal and external setup activities, then project annual time and cost impact.

How it works

  1. Enter the total current setup time and how much of it is internal (machine must be stopped) vs external (can be done while running).
  2. Step 1 (SMED conversion): all external activities are moved to pre/post-setup, eliminating them from stopped-machine time.
  3. Step 2 (internal streamlining): apply a percentage reduction to remaining internal time via improved fixtures, standard work, or parallel tasks.
  4. Enter the number of setups per day and working days per year to calculate annual time saved.
  5. Optionally enter an hourly machine cost to convert time savings into a dollar figure.
  6. Results update instantly as you change any input.

Use cases

  • Justify capital investment in quick-change tooling by quantifying annual time savings.
  • Benchmark current changeover performance before a Kaizen event.
  • Set realistic improvement targets for internal setup streamlining.
  • Calculate OEE impact of reducing changeover time on a production line.
  • Compare scenarios: convert externals only vs. also streamline internals.
  • Build a business case for adding a setup preparation crew.
  • Track setup time improvements sprint-over-sprint in a lean program.
  • Estimate annual cost savings from a proposed fixture redesign.

Frequently Asked Questions

Last updated: 2026-07-24 · Reviewed by Nham Vu