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


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

Before we begin, let's review some important management concepts, as they related to this question.

What does Operational Excellence mean?
What does Continuous Improvement mean?
What does Standardization of Processes mean?


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.

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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.

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.

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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SMED Case Studies

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

Setup Reduction Enhancement in Maritime Logistics

Scenario: The organization in focus operates within the maritime industry, specifically in logistics and port management, and is grappling with extended setup times for cargo handling equipment.

Read Full Case Study

SMED Process Optimization for High-Tech Electronics Manufacturer

Scenario: A high-tech electronics manufacturer is struggling with significant process inefficiencies within its Single-Minute Exchange of Die (SMED) operations.

Read Full Case Study

Quick Changeover Strategy for Packaging Firm in Health Sector

Scenario: The organization is a prominent player in the health sector packaging market, facing challenges with lengthy changeover times between production runs.

Read Full Case Study

SMED Process Advancement for Cosmetic Manufacturer in Luxury Sector

Scenario: The organization in question operates within the luxury cosmetics industry and is grappling with inefficiencies in its Single-Minute Exchange of Die (SMED) processes.

Read Full Case Study

Quick Changeover Initiative for Education Tech Firm in North America

Scenario: The organization, a leading provider of educational technology solutions in North America, is grappling with extended downtime and inefficiencies during its software update and deployment processes.

Read Full Case Study

Resilience in Supply Chain Strategy for IT Support Services in Transportation

Scenario: An IT support services provider for the transportation sector is facing significant challenges related to setup reduction, impacting its ability to swiftly adapt to market demands and technological advancements.

Read Full Case Study




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