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Traditionally, EMS companies have focused their continuous improvement efforts on machine speeds, placement accuracy, yield enhancement, and labor productivity. Yet across much of the industry, one of the largest contributors to lost capacity remains largely hidden in plain sight. We’re talking, of course, about setup time optimization.
High-mix production is increasing even as product lifecycles shrink, meaning changeovers occur more frequently than ever, resulting in a proportionally larger amount of time lost to setup activities. Inefficient setup processes cost hundreds of hours of annual production capacity, and this lost time can mean the difference between a modest profit and self-funded company expansion.
The good news is that setup optimization follows the proverbial 80/20 rule: a 20% effort well targeted can create an 80% return in overall equipment effectiveness (OEE). The key is applying the Lean manufacturing principle of single-minute exchange of die (SMED) to modern SMT manufacturing.
What is SMED?
If you’re like me, SMED is a new term. Even though I’ve been around Lean manufacturing principles, I hadn’t encountered the SMED idea. The idea is to find ways to optimize changeovers that take under 10 minutes to complete. The term emerged from the development of TPS at Toyota. Shigeo Shingo wrote the authoritative book on the subject, A Revolution in Manufacturing: The SMED System. James Womack also developed a SMED summary, published by the Lean Enterprise Institute.
To continue reading this article, which appeared in the July 2026 issue of SMT007 Magazine, click here.
