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Flevy Management Insights Q&A
Can SMED principles be applied to the software development lifecycle or other non-manufacturing processes?


This article provides a detailed response to: Can SMED principles be applied to the software development lifecycle or other non-manufacturing processes? For a comprehensive understanding of SMED, we also include relevant case studies for further reading and links to SMED best practice resources.

TLDR SMED principles, originally from manufacturing, can enhance efficiency, reduce transition times, and improve productivity in software development and non-manufacturing processes through standardization and separating internal from external activities.

Reading time: 4 minutes


SMED, or Single-Minute Exchange of Dies, is a system for dramatically reducing the time it takes to complete equipment changeovers. The essence of SMED is to convert as many changeover steps as possible to "external" (performed while the equipment is running), and to simplify and streamline the remaining steps. This concept, originating in the manufacturing sector, specifically in automotive manufacturing under the guidance of Shigeo Shingo, has broader applications beyond its initial scope. When we look at the principles of SMED, it becomes evident that they can be effectively applied to the software development lifecycle (SDLC) and other non-manufacturing processes to enhance efficiency, reduce turnaround times, and improve overall productivity.

Applying SMED Principles to Software Development

In the context of software development, changeovers can be likened to the transitions between different stages of the development lifecycle, such as from requirements gathering to design, from design to coding, or from development to testing. These transitions often involve significant setup times and adjustments, much like the changeovers in manufacturing. By applying SMED principles, software development teams can reduce these transition times, leading to faster delivery cycles and more responsive development processes.

For instance, one actionable insight is to identify and separate "external" setup activities (those that can be done in advance or in parallel with ongoing work) from "internal" setup activities (those that require the current stage to be completed before they can be started). An example of an external setup activity in software development could be the creation of test environments or the preparation of test data while the development is still in progress. This approach not only shortens the overall development cycle but also improves team utilization and efficiency.

Another aspect of SMED that can be applied to software development is the standardization of setup activities. By creating standardized procedures and checklists for transitions between development stages, organizations can reduce variability and uncertainty, leading to more predictable and shorter development cycles. This approach aligns with Agile methodologies and Continuous Integration/Continuous Deployment (CI/CD) practices, which emphasize automation and standardization to achieve efficiency and speed.

Explore related management topics: Agile Requirements Gathering

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SMED in Non-Manufacturing Processes

Outside of software development, SMED principles can be applied to a wide range of non-manufacturing processes in areas such as service delivery, project management, and administrative functions. For example, in project management, the transition between different phases of a project (initiation, planning, execution, and closure) involves various setup activities that can be optimized using SMED principles. By identifying and reducing these transition times, organizations can achieve faster project completion times and more flexible project management.

In administrative functions, processes such as onboarding new employees, setting up new customer accounts, or transitioning between different financial reporting periods often involve significant setup times. Applying SMED principles to these processes can help in identifying activities that can be completed in advance or parallelized, and in simplifying and standardizing the remaining steps. This not only speeds up the processes but also improves the quality and consistency of the outcomes.

Real-world examples of the application of SMED principles in non-manufacturing contexts include a global financial services firm that applied these principles to its software deployment processes, resulting in a 50% reduction in deployment times, and a healthcare provider that used SMED to streamline its patient admission process, significantly reducing waiting times and improving patient satisfaction. These examples demonstrate the versatility and effectiveness of SMED principles across different domains.

Explore related management topics: Project Management

Conclusion

While specific, authoritative statistics from consulting or market research firms on the application of SMED principles outside of manufacturing are scarce, the underlying logic of SMED—minimizing transition times, separating internal from external setup activities, and standardizing processes—is universally applicable. The principles of Operational Excellence and Continuous Improvement that underpin SMED are relevant across all sectors and can lead to significant efficiency gains and performance improvements.

In conclusion, the application of SMED principles to the software development lifecycle and other non-manufacturing processes represents a powerful strategy for organizations seeking to enhance their agility and responsiveness. By focusing on reducing transition times, standardizing processes, and separating internal from external activities, businesses can achieve significant improvements in efficiency and productivity, regardless of their industry or domain.

Explore related management topics: Operational Excellence Continuous Improvement Market Research

Best Practices in SMED

Here are best practices relevant to SMED from the Flevy Marketplace. View all our SMED materials here.

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Explore all of our best practices in: SMED

SMED Case Studies

For a practical understanding of SMED, take a look at these case studies.

Electronics Manufacturer Quick Changeover Enhancement

Scenario: The organization is a mid-sized electronics manufacturer specializing in consumer gadgets.

Read Full Case Study

Quick Changeover Initiative for Automotive Supplier in Competitive Market

Scenario: A firm specializing in the manufacture of high-performance automotive components is facing challenges in its Quick Changeover process.

Read Full Case Study

SMED Process Enhancement in Infrastructure Sector

Scenario: The organization is a prominent player in the infrastructure industry, facing significant delays in project completion due to inefficient Single-Minute Exchange of Die (SMED) processes.

Read Full Case Study

Quick Changeover Enhancement for Retail Firm in Specialty Outdoor Gear

Scenario: The organization is a specialty outdoor gear retailer experiencing inefficiencies in inventory management and restocking processes.

Read Full Case Study

Quick Changeover Strategy for Agritech Firm in Sustainable Farming

Scenario: The company is a player in the sustainable agritech sector, striving to minimize equipment downtime and enhance productivity on the farm.

Read Full Case Study

SMED Process Refinement for Luxury Automotive Manufacturer

Scenario: A luxury automotive manufacturer is facing production delays due to inefficient Single-Minute Exchange of Dies (SMED) processes.

Read Full Case Study


Explore all Flevy Management Case Studies

Related Questions

Here are our additional questions you may be interested in.

What impact will the increasing focus on sustainability have on Quick Changeover methodologies and practices?
The shift towards sustainability is transforming Quick Changeover practices to minimize waste and energy use, improving Operational Efficiency and contributing to Environmental Goals. [Read full explanation]
What role does customer feedback play in shaping Setup Reduction strategies?
Customer feedback is crucial in shaping Setup Reduction strategies, guiding organizations towards operational efficiency, product quality improvement, and continuous innovation, ultimately improving customer satisfaction and market position. [Read full explanation]
What strategies can integrate Quick Changeover with Total Productive Maintenance to maximize production efficiency?
Integrating Quick Changeover and Total Productive Maintenance involves Strategic Alignment of organizational goals, enhancing Employee Engagement, and leveraging Technology to achieve Operational Excellence and maximize production efficiency. [Read full explanation]
How can companies measure the long-term ROI of Setup Reduction initiatives to justify upfront investments?
Measuring the long-term ROI of Setup Reduction involves analyzing direct and indirect benefits, strategic implementation, continuous measurement with KPIs, and benchmarking against industry standards to justify upfront investments and achieve significant operational gains. [Read full explanation]
How can Lean Six Sigma Black Belt professionals utilize Quick Changeover techniques to enhance process improvement projects?
Lean Six Sigma Black Belt professionals can significantly improve Operational Efficiency by integrating Quick Changeover techniques to reduce setup times, thereby increasing production flexibility and reducing inventory levels. [Read full explanation]
What are the challenges and solutions for Setup Reduction in the context of remote and distributed manufacturing setups?
Challenges in remote and distributed manufacturing setups include coordination difficulties, technology limitations, and workforce engagement, with solutions involving Digital Transformation, Process Innovation, and Workforce Development to improve Setup Reduction. [Read full explanation]
How does SMED influence customer satisfaction and product customization capabilities in a competitive market?
SMED significantly improves Operational Excellence, enabling quicker market responsiveness and product customization, leading to higher customer satisfaction and competitive differentiation. [Read full explanation]
What are the best practices for integrating Setup Reduction with existing enterprise resource planning (ERP) systems?
Integrating Setup Reduction with ERP systems improves Operational Efficiency by providing real-time data for better decision-making, streamlining production, and optimizing resource allocation. [Read full explanation]

Source: Executive Q&A: SMED Questions, Flevy Management Insights, 2024


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