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Equipment Performance Part 3 - A Closer Look at SMED

Our customers require us to send the product they need in a specific sequence and quantity. Our equipment does not always agree with this need due to complex changeovers, so we build large batches of parts to cover the customer’s demand. This inventory is “tied up cash flow” that could be used to generate income, but instead, it burdens us with excess carrying costs. To remedy this, our best course of action is to attack the root cause, which is the actual changeover time. Successfully reducing changeover time allows us to reduce inventory, increase production capacity, provide greater flexibility, reduce lead‐time, and level production. Ultimately, it allows us to be more profitable.

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