The effect of SMED applications on manufacturing times and unit costs and evaluvation with oee

The two most important factors affecting the profitability of production companies are "Competition" and "Production Costs". The increasing number of producers and the presence of substitutes will make the pricing policies of enterprises dependent on the market. Due to increased competition, product prices and profitability are reduced. In addition, companies are making investment decisions in order to protect their profitability level and their competitive advantage. Increasing investment costs and new requirements increase production costs. Although the negative impact of shrinking market prices and rising costs, enterprises must eliminate production losses in order to protect profitability rates and competitive advantage. In addition, the results of the study should be evaluated in terms of production performance and unit cost and should be used in management decisions. The aim of this study is to determine the effect of improvement studies on production performance and machine unit costs. For this purpose, SMED methodology has been applied to improve the setting and preparation process of one of the production lines of an enterprise in the bright steel sector. After SMED application, the effect on machine performance and unit cost was evaluated. "OEE" (Total Equipment Efficiency) and "Availability" criteria were used to measure production efficiency. The effect of increased production time on unit costs was measured by FTM (Activity Based Costing) method. This study presented aspects and methods of improvement studies for critical management decisions such as pricing policies, effective profit planning and production planning.