In today’s manufacturing environment, companies lose money in two main ways: when machines stop and when they run inefficiently.
The first problem is invisible, the second is not.
Setup time – the changeover between one production job and the next – is one of the most underestimated and least visible sources of waste.
It doesn’t appear on financial dashboards, it’s rarely measured, and yet it silently erodes margins every single day.
If you work in production, you know exactly what I mean:
- hours lost in fixtures change;
- operators waiting;
- machine downtime;
- scheduling collapsing like dominoes;
- low-margin activities.
What setup really is?
Why does it cost you more than you think?
How can you reduce it structurally?
What Setup Really is.
Setup is not just “changing the part.”
Setup represents everything that happens between the last good part of Job A and the first good part of Job B.
And within that time you have:
- assembly and disassembly of fixtures
- tool adjustments
- zeroing
- programming
- micro-tests
- trials
- mistakes
- initial reworks
- downtime
How often do you really measure this time
and not roughly?
Many production managers underestimate it because:
- it is not tracked
- it is “absorbed” into cycle time
- it is spread over multiple operations
- it is not assigned to a single defined cost item
But the truth is simple: setup is non-productive time and every non-productive minute has a direct industrial cost.
Setup is an Industrial Cost, not an Operational Concern.
Setup is not an operational problem to delegate to the production department.
It is a true industrial cost, just like labor, energy, or raw materials.
Except that, unlike those, it is rarely measured, almost never structured, and often underestimated.
Every minute of machine downtime during a changeover is time that produces no value and generates costs.
Costs that silently penetrate your orders, squeeze margins, and turn operations that look profitable into “tight” productions where, at month-end, you struggle to understand where the profit went.
The problem is not just economic.
Inefficient setup creates instability: it slows scheduling, increases pressure on operators, generates bottlenecks, and forces defense production choices.
Companies accept only simple orders, avoid small batches, and sacrifice flexibility for fear of paying the price of changeover.
Not because customers don’t ask for it — because the system can’t handle it.
In many companies, setup is not a technical detail.
It is a strategic constraint that determines what you can produce, how you produce it, and how much you can earn.
Where Setup reduction comes from (and why It’s ot a trend)
SMED was born in post-war Japan, when Toyota – like many companies at the time – faced severe resource shortages and an increasingly variable market.
Credit goes to Shigeo Shingo, who between the 1950s and 1960s codified a systematic approach to drastically reducing changeover times: distinguishing “internal” operations (when machine stopped) from “external” ones (done while the machine runs), moving as many activities as possible outside machine downtime, and standardizing procedures.
The objective, not a technical whim but an industrial need, was to make small and variable batch production possible without stopping production for hours.
Today, SMED is not a trend: it is the foundation of flexible production and lean manufacturing, central to the philosophy of “doing more with less” and essential for responding quickly to market variability.
The Uncomfortable Truth: Setup also limits what you can sell.
There is a consequence many business owners don’t clearly consider.
If setup is long, you avoid:
- small batches
- customizations
- rush orders
- extra orders
- anything “uncomfortable”
Not because customers are not important.
But because your production system cannot handle variability.
When setup times are high, you are no longer leading production; setup is calling the shots.
You end up pushing high volumes of the same part not by strategic choice, but to avoid expensive downtime.
The result is rigid production, slow to react to the market, and increasingly misaligned with real customer demand.
But today’s market demands:
- flexibility
- variability in product mix
- fast response
- short delivery times
- frequent changeovers
If you don’t control setup, setup controls you.
SMED: the technique that changed Manufacturing Worldwide.
SMED stands for Single Minute Exchange of Die, changeovers in under 10 minutes.
Not by magic. By method!
SMED is not a theoretical Japanese slogan.
It is a concrete, powerful, proven technique to:
- drastically reduce setup times
- standardize operations
- make changeover
- repeatable, fast, and safe
But be careful:
SMED doesn’t mean “work faster.” It means “organize better and sooner.”
The 4 Pillars of SMED.
1. Separate Internal and External Operations.
First rule – divide setup into:
- internal activities → done with the machine stopped
- external activities → done while the machine runs
You’ll quickly notice that many things you currently do with the machine stopped can be done without interrupting production.
Typical examples:
- presetting
- preparing fixtures in the toolroom
- searching/preparing tools
- missing drawings or documents
If during setup you’re searching for something, you’re not doing setup — you’re paying the price of disorganization.
2. Convert Internal Operations into External Operations
Second rule – convert as many operations as possible from “internal” to “external.”
This is done through:
- tool presetting
- pre-assembled setup kits
- quick-change systems
- standardized clamps and fixtures
Result: the changeover happens before the machine stops.
3. Simplify and Eliminate Waste
Third rule – eliminate everything unnecessary.
Anyone in production knows:
- redundant steps
- unnecessary assemblies
- old habits
- repeated tasks
- zeroing “just in case”
SMED forces you to:
- analyze every single action
- understand if it is truly needed
- remove anything that adds no value
4. Standardize Procedures
The fourth and most neglected rule: standardization.
If setup is not standardized, every improvement is temporary.
Standardizing means:
- clear operating procedures
- setup checklists
- reference photos
- defined roles
- defined, visible target times
With real standards, the changeover doesn’t depend on the operator, it depends on the system.
The Real Leap: when the machine is designed for Fast Changeovers.
Up to now, we’ve talked about method.
But here’s a truth few mention: processes and organization alone can significantly reduce setup times, but the ultimate limit is determined by the machine itself.
If a machine:
- has complex tooling
- is not modular
- is not designed for quick change
- requires constant adjustments
- is not accessible
… you will NEVER achieve drastic reductions.
You can reduce, but not make the competitive leap.
The PORTACENTER Case: when SMED becomes structure.
In our production department, we have a demo PORTACENTER machine configured for real changeover tests.
Measured result: 37 seconds of setup per station.
With 3 stations: under 3 minutes total changeover.
This is not theory. It is the outcome of a machine designed for quick changeover:
- modular fixtures
- standardized references
- screws are essential and smart
- zero unnecessary steps
When machine design supports SMED and method, performance multiplies.
Setup is not a technical issue. It’s a Strategic Choice.
Here is the tricky point.
Setup is high NOT because:
- “operators are slow”
- “production is complex”
- “parts are difficult”
- “there are too many variants”
Setup remains high because it has never been a strategic priority.
As long as setup:
- is not measured
- is not compared
- is not challenged
- is not reduced against targets
… it will necessarily remain high.
Three uncomfortable Questions.
- Do you know exactly how much setup costs your company, in €?
- Do you have a target time for each machine?
- Do you measure it systematically?
If any answer is “NO,” you have a hidden problem; one affecting margin, capacity, and competitiveness.
What you can do immediately (before thinking about Machines).
Before investing in new machines, start with four simple actions:
Action 1 – Measure
Measure a complete setup from the last good part of Job A to the first good part of Job B.
Action 2 – Separate
Separate:
- internal operations
- external operations
Action 3 – Eliminate
Identify and eliminate unnecessary actions.
Action 4 – Standardize
Put into writing:
- the operating procedure
- a checklist
- critical points
Even applying this to one machine will deliver surprising results.
Conclusion.
Setup is:
- not secondary
- not just technique
- not mere operations
It is hidden revenue.
Reducing setup time means unlocking:
- increased productive
- capacity
- faster response to orders
- more flexibility
- stronger margins
If you want to:
- run smaller batches
- respond quickly to market changes
- be flexible
- avoid margin loss
you must control setup instead of suffering it.
Want to see what Fast Setup really looks like?
In Porta Solutions, we’ve pushed SMED to its operational limit on a real PORTACENTER, achieving changeovers in 37 seconds per station.
Watch the video here: SMED in 3 minutes.
For a technical evaluation or to explore how SMED can be applied to your production environment, contact us at tutor@porta-solutions.com or call: +39 030 8172200