EXAMINATION OF THE EFFECT OF SMED METHODOLOGY ON THE SETUP TIME AND UNIT COST: APPLICATION IN THE STEEL BAR PEELING PRODUCTION LINE

Year 2019, Volume: 7 Issue: 1, 77 - 103, 30.04.2019

Hakan Çelik , Kamil Taşkın

https://doi.org/10.22139/jobs.449901

Cited By: 1

Abstract

 

Competition is one of the most important factors in
determining the independence of product prices. Increasing competition
conditions cause sales prices of products and services not to be determined by
enterprises. On the other hand, competition
forces companies to seek alternative methods and tools.

Production companies increase their investments in
production technologies in order to increase the efficiency of the process. The
product quality is increased and the production times are shortened by the effect
of these investments. In spite of the positive results of the investments,
operating costs have been negatively affected and production costs have
increased significantly.

The two factors that affect the level of companies’
profitability are the sale price and conversion costs. The profitability of the
companies decreased due to the determination of the sales price in the market
conditions and the increase in the operating costs. As a result, it is
necessary to manage the operating costs better in order to increase the level
of profitability of the enterprises and to continue the operational activities.

The companies initially focused on reducing department
cost items. Due to the limited results, they realized that the actual losses
were in the production process. It is important how effectively the unit time
is used in a process where production costs are high. Therefore,
process-oriented thinking has gained weight and companies have begun to try to
improve the production process.

The problem of uncontrollable production processes in
traditional production enterprises is that the number of non-value-added
activities and their weight are high. Actual production time is low due to the
high number of chronic problems such as failure, adjustment and waiting. On the
other hand, the total adjustment period has increased due to changing customer
expectations, increasing product variety, and
decreasing demand size. As a result, the actual production time is further
reduced.

One of the most important posture losses in
uncontrolled production processes is the adjustment and preparation processes.
Under changing conditions, the adjustment time has become more important. The
SMED methodology is one of the methods frequently used to improve the setup
process. It is a lean manufacturing tool that focuses on the creation and
development of a systematic setup process with the aim of reducing the losses
of enterprises.

The SMED Methodology contributes to the adjustment and
improvement of the machinery or equipment to be performed with minimum setup
time. In this way, it is possible to reduce the time of preparation between two
orders in production processes and reduce the size of order parties and reduce
stock costs.

At the end of SMED applications, it is generally
concerned with how much the unit setting times are reduced. However, as well as
examining the effect of the results of the application on the unit set-up time,
it is necessary to examine the effect of the results on the total efficiency of
the equipment and the unit cost of the equipment. The fixed costs per product
will be reduced, depending on the increase in production quantity per unit
time. Therefore, the reflection of SMED applications on unit cost should be
evaluated in order to reflect the results to the level of pricing and
profitability.

The aim of this study is to investigate the effect of
SMED applications on total production times and unit costs. For this purpose, a SMED application study was carried out in the
production line of a bright steel company in Kocaeli. The study was evaluated
in two separate stages as measuring the effect on the production time and
measuring the effect on the unit cost after the improvement of the process.

OEE (Total Equipment Effectiveness) was used to
evaluate the effectiveness of production vehicles and to prioritize the
machinery or equipment to be improved. OEE is a key performance key that allows
the production line to be evaluated based on availability, performance and quality. In the study, prioritization of
the three main product lines of the
company was evaluated according to OEE calculated based on 2017 production
data. According to the result of the evaluation, it was decided to work on the
peeling machine.

The SMED methodology in the selected production line
has been implemented in four stages: analyzing the current situation,
separating the internal and external adjustment processes, converting the
external setting operations to internal setting and improving the steps of the
process.

On the production line, there are two types of
settings: production changeover and cutting tool change. During the year, the
total production change and cutting tool change were 20250 min and 5072
minutes. The application number of the setting types is 810 and 317. Table 4
shows the adjustment process steps of the setup types. According to the table,
the production and blade change settings are average at 29 and 17 minutes.

In the second phase of SMED implementation, the
internal and external adjustment process are separated. However, the process of
feeding the raw material to the production line has been turned into an
external setting. For this reason, the third and fourth stages were implemented
together, and both internal adjustment processes were transformed into the
external adjustment process, and both process steps were improved.

As a result of the SMED application, the internal set up
times for the production and blade change adjustment processes were reduced to
8.5 minutes and 6 minutes. When the total number of setup in the year is not
changed, the total set up times has been
reduced to 8787 minutes. Accordingly, the total production time increased by
16535 minutes. In total production time, availability increased by 7.45%.

In order to examine the effect on production unit costs,
the FTM (Activity Based Costing) system has been established in the company.
The FTM system is a cost management tool that can explain the resource
consumptions and operations of the enterprise. The cost system has been
modified in order to eliminate the negativity of traditional costing systems
and to better explain the operating results. Furthermore, it will be able to
follow the results of improvement studies more easily through the FTM system. Depending on the established cost
system, the unit fixed and variable costs of the Peeling Machine are calculated
as 6.40 TL and 2.44 TL. After the improvement results are reflected in the cost
system, the costs have changed to 5.78 TL and 2.21 TL. The unit cost of the
production line decreased by 0.85 TL.

The results obtained in the study revealed the
necessity of determining the effects of the improvement studies on the planned
production time and the unit cost. In particular, it is important to reflect on
the costs of the improvement works in the enterprises that have the cost
advantage and need to dynamically update the sales price.

In business and academic improvement studies, the
level of competence of the current cost system is extremely important.
Therefore, it should be evaluated whether the existing cost system is
compatible with the operating activities at the beginning of the studies. In
other words, it should be ensured that the change results are traceable. After
verification, it would be more appropriate to reflect the results of the study
on strategic management decisions such as pricing. In studies to be carried out
for production planning and scheduling, studies should be carried out
considering the outputs of the improved setup process.

Keywords

SMED, OEE, FTM, Unit Cost

SMED UYGULAMASININ AYAR SÜRESİNE ve BİRİM MALİYETE ETKİSİ: KABUK SOYMA PARLAK ÇELİK ÜRETİM HATTI UYGULAMASI

Abstract

Amaç: SMED
yönteminin ayar sürelerine ve birim zaman maliyetine olan etkisini
araştırmaktır.

Yöntem: Ayar
sürelerinin iyileştirilmesinde SMED metodolojisi kullanılmıştır. Elde edilen
sonuçların, birim maliyete olan etkisi FTM sistem ile değerlendirilmiştir.

Bulgular: Çalışma
sonucunda iki ayar sürecinde 66% ve 62,5% iyileştirme sağlanmıştır. Ayar
sürelerinde ve diğer duruşlarda sağlanan 1 dakikalık iyileştirme, birim
maliyetlerde 0,0000514 TL azalma sağlamaktadır. Toplam ayar sürelerindeki
iyileştirmeler, birim maliyetlerin 0,85 TL azaltmıştır.

Sonuç: SMED
uygulamalarında elde edilen zaman kazançlarının yanı sıra bu kazançların üretim
birim maliyetine nasıl bir etkide bulunduğunun tespit edilmesi için, etkilerin
maliyet sistemi üzerinden izlenmesi gereklidir.

Keywords

SMED, OEE, FTM, Birim Maliyet

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