Abstract: To stand up in today’s highly competitive world, the manufacturers need to find a way to reduce the production time. Elimination of the wastes can improve the productivity of the company. By making use of the lean manufacturing tools the company can remain in competition and they can survive in modern world. The main objective of this project is to reduce the setup time of the Gear Hobbing Machine by 20 – 25 % through Single Minute Exchange of Die (SMED) Technique and thereby improving the productivity. The work is carried out at a gear manufacturing company. Careful observation is done while changeover or setup and maximum possible internal activities have been converted to the external activities and then some of the activities were made parallel, hence saving a considerable amount of time.