Loss Mapping Webinar

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Loss Mapping Webinar

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SAMI Loss Mapping Assessment Webinar

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Agenda SAMI Loss Mapping Assessment Value Use of Information Loss Mapping Assessment Process Production Loss Analysis Non-equipment Factors Behavioral Baseline Scope, Duration and Staffing Deliverables Limitations Conclusion

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The SAMI Loss Mapping Assessment The Loss Mapping Process is an integral part of SAMI’s functional and full pyramid assessments and is used to determine productivity and cost improvement potential. The SAMI Loss Mapping Assessment was developed for companies that want a quick high level view of a plant’s or facilities productivity improvement potential, and for companies wanting to assess multiple sites without performing a full pyramid or functional assessment at each site. The SAMI Loss Mapping Assessment is a high level operational analysis that determines the unutilized production potential of a plant or facility, categorizes losses by type, and identifies where in the processes the losses occur. It also identifies non-equipment and behavioral factors that may also contribute to these losses. In addition to the high level view, The Loss Mapping Assessment also points out areas where “deep dive” assessments should be performed. 3

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Value of the Loss Mapping Assessment The Loss Mapping Assessment provides the client with information and understanding regarding: The actual utilization of an asset (facility, plant, production line) compared to the design capability of that asset The breakdown of production losses with regard to downtime, speed and production quality The identity of those pieces of equipment where the losses occur and their most frequent causes The non-equipment related factors contributing to the lost production The impact of current Behaviors on performance The identification of areas where further more detailed assessments are needed The potential financial impact of implementing an asset performance improvement strategy 4

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Use of Loss Mapping Information The information gathered from a Loss Mapping Assessment: Helps in developing and implementing a plant performance improvement strategy Categorizes the causes of underperforming OEE for further analysis to enable analysts to drill down into the data to find the root causes of fundamental issues causing plant losses Addresses problems in a systematic way in order to eliminate firefighting Helps to focus improvement efforts on projects with a bottom-line impact Shows the interdependency of factors (equipment and non-equipment related) impacting production losses and costs Assists rapid and sustainable improvement of business objectives by helping to understand and compare all influencing factors .

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Loss Mapping Assessment Process The Loss Mapping Assessment has 3 interrelated elements Production loss analysis Analysis of non-equipment factors impacting production performance Behavioral analysis

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Loss Mapping Assessment Process – Production Loss Analysis We start by developing a map of the process flow to understand the production process. We then identify the process constraint and determine the factors that can cause the constraint to move to another part of the process. Next we calculate the Total Effective Equipment Performance (TEEP) and the Overall Equipment Effectiveness (OEE) based on the capabilities of the identified constraint. We then drill down into the TEEP and OEE factors of downtime, speed and quality to map the losses. (See the examples on the following slides) 7

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Loss Mapping Assessment Process – Production Loss Analysis, High Level Loss Map Example 8 High level loss maps can be displayed in a number of ways including time lost, revenue lost, and units of production lost as shown in the examples Loss Type % Loss Tons Loss Uptime Losses (24 Hours) 15.67% 3554T/D Availability Losses 10.52% 2386T/D Planned Downtime 5.77% 1309T/D Unplanned Maintenance 4.75% 1077T/D Other Uptime Losses 5.15% 1168T/D Unplanned Operating 4.61% 1046T/D Standby 0.50% 113T/D Unclassified 0.04% 9T/D Rate Loss (20.22 Run Hours Per Day) 14.90% 2850T/D Quality Losses (1.29% Cu, 4.06% U 3 O 8 ) 6.06% 968T/D Total Loss Based on Capability 7390T/D

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Loss Mapping Assessment Process – Production Loss Analysis, High Level Loss Map Example Car Dumper Productive Time was 42% of Calendar Time or the equivalent of 154 Days 9

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Loss Mapping Assessment Process – Production Loss Analysis, High Level Loss Map 10

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Loss Mapping Assessment Process – Production Loss Analysis, Level 3 Loss Map Drill Down 11 During the Loss Mapping Assessment we drill down to the 3 rd level to get a sense of where the losses are and the major reasons for the losses. Further drill down is possible and depends on the client’s data capture capability. Because of the time constraints for a Loss Map Assessment, further drill down into the data is done during a full SAMI Assessment and includes equipment loss and cause Paretos generally going down to level 5 or 6.

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Loss Mapping Assessment Process – Non-Equipment Factor Analysis Client Interviews In order to identify non-equipment factors that may impact throughput and costs we conduct interviews at all organizational levels. The information gathered through the interviews provides a direction and focus for the Impactability Workshop. Impactability Workshop The Impactability Workshop is conducted using the Loss Map data and Ishikawa Diagrams to identify non-equipment factors such as business processes, materials, people, and external issues that may have an impact on productivity and cost. 12

Loss Mapping Assessment Process - Behavioral Baseline – An Introduction to APEX™:

13 Loss Mapping Assessment Process - Behavioral Baseline – An Introduction to APEX™ Companies routinely quantify equipment and process performance, but merely observe organizational, behavioral and cultural performance. Behaviors are the root causes that lead to performance effects. To improve performance across a site or organization, it is imperative to define and communicate the desired behaviors, track those behaviors, and give feedback accordingly. APEX™ is a tool that quantifies both behaviors and practice metrics. Typical APEX evaluations require: Field Observations Meeting Observations Vertical cross-section of organisational participation

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APEX™ Measures Performance Over Time & Across Assets PERFORMANCE CULTURE 0 6 6 0 X=PERFORMANCE METRICS Y=BEHAVIORS HIGH PERFORMANCE LOW PERFORMANCE UNSUSTAINABLE SUSTAINABLE ASSET 1 ASSET 2 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Time 14

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Scope Duration and Staffing The scope of the loss mapping assessment covers the following: Production process and equipment factors impacting uptime , speed and quality Variability and non-equipment factors that can impact operating performance, cost and customer service Operating culture behaviors and functional metrics Assessment duration is 2 to 3 weeks Staffing 2 SAMI Consultants 3 to 4 Client personnel on a part time basis

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Loss Mapping Assessment Deliverables Throughput and efficiency improvement potential Impact of variability and non-equipment factors on the production process Baseline of behavioral performance Identified improvement opportunities and issues High level move forward plan Business case for moving forward

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Loss Mapping Assessment Limitations As we mentioned earlier, the Loss Mapping Assessment is a high level view of a plants or facilities losses. Its purpose is to inform the client of the additional throughput potential and both equipment and non-equipment factors that impact those losses. It does not: Assess the quality of the strategies, objectives, and plans Require review how efficiently these strategies, objectives and plans are executed Review the effectiveness of the facilities business processes In order to get a complete picture of all the factors impacting performance, a detailed data driven assessment needs to be performed. SAMI has several assessment offerings that look at all the relevant issues impacting performance. These assessments can focus on the full Pyramid or the functions Asset Healthcare, Production, Supply Chain, Capital Management and Organizational Excellence. 17

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Conclusion 18 To Begin the Discussion of Developing a Performance Culture in Your Organization Please contact SAMI at: (860) 675-0439

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