Overall Equipment Effectiveness by Operational Excellence Consulting

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Presentation Description

The goal of Total Productive Maintenance (TPM) is to increase equipment effectiveness so that each piece of equipment can be operated to its full potential and maintained at that level. To maximize equipment effectiveness, you need a measurement tool that can help you understand your equipment problems so that you can take steps to eliminate them. The key to this understanding is Overall Equipment Effectiveness (OEE). OEE is a crucial measure in TPM that tells you how well your equipment is running. It links three elements in one percentage: the time the machine is actually running, the quantity of products the machine is turning out, and the quantity of good output. ​ LEARNING OBJECTIVES 1. Understand the concept and philosophy of TPM and its relationship with OEE 2. Explain the importance of OEE and how it relates to value-adding work of the factory 3. Understand OEE concepts such as Availability, Performance, Quality and the Six Major Losses 4. Describe the steps of collecting and processing OEE data and reporting results 5. Define approaches for reducing equipment-related losses to raise OEE ​ CONTENTS 1. Introduction to TPM & OEE 2. Understanding Equipment-Related Losses 3. Measuring OEE 4. Improving OEE To download this presentation, please visit: http://www.oeconsulting.com.sg

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Overall Equipment Effectiveness:

Overall Equipment Effectiveness Eliminate Losses, Improve OEE

Learning Objectives :

Learning Objectives Understand the concept and philosophy of TPM and its relationship with OEE Explain the importance of OEE and how it relates to value-adding work of the factory Understand OEE concepts such as Availability, Performance, Quality and the Six M ajor L osses Describe the steps of collecting and processing OEE data and reporting results Define approaches for reducing equipment-related losses to raise OEE

Program Outline:

Program Outline Introduction to TPM & OEE Understanding Equipment- R elated Losses Measuring OEE Improving OEE Appendices: Practical Tips Copyrights of all the pictures used in this presentation are held by their respective owners. NOTE: This is a PARTIAL PREVIEW . To download the complete presentation, please visit: http:// www.oeconsulting.com.sg

What is TPM?:

What is TPM? Total Productive Maintenance (TPM) is a company-wide approach for improving the effectiveness and longevity of machines Management + Operators + Maintenance

Why is TPM important?:

Why is TPM important? TPM will improve teamwork skills and flexibility between operators and maintenance staff TPM will improve equipment availability (uptime) TPM saves us money

TPM Goals:

TPM Goals Maximize equipment effectiveness Zero breakdowns Zero defects Zero accidents Zero waste!

Eight Strategies (“Pillars”) of TPM:

Eight Strategies (“Pillars”) of TPM TPM in the Office Safety & Environmental Management Autonomous Maintenance Planned Maintenance Focused Improvement Quality Maintenance Early Equipment Management Education & Training 5S & Visual Management TPM Goals: Zero Defects, Zero Breakdowns, Zero Accidents The first four Pillars have the highest impact on OEE as it is influenced by daily o perations, maintenance and improvement activities

Relationship Between TPM & OEE:

Relationship Between TPM & OEE Approach & Deployment Result OEE TPM

What is OEE?:

What is OEE? Overall Equipment Effectiveness is a measurement used in TPM to indicate how effectively machines are running OEE is a metric that identifies the percentage of planned production time that is truly productive. An OEE score of 100% represents perfect production: manufacturing only good parts, as fast as possible, with no down time.

What is OEE?:

What is OEE? OEE = Availability X Performance X Quality Availability A comparison of the potential operating time and the time in which the machine is actually making products Performance (Efficiency) A comparison of the actual output with what the machine should be producing in the same time Quality A comparison of the number of products made and the number of products that meet the customer’s specifications

Why is OEE Important?:

Why is OEE Important? In the short term, OEE identifies the total opportunity for improvement (sometimes referred to as “uncovering the hidden factory”) for a given piece of equipment. In the long term, OEE helps you drive improvement through a better understanding of losses. It also provides an objective way to set improvement targets and track progress towards reaching those targets.

What Does the OEE Score Mean?:

What Does the OEE Score Mean? OEE Factor Perfect Production Availability An Availability score of 100% means the process is always running during planned production time (it's never down). Performance A Performance score of 100% means when the process is running it is running as fast as possible (at the theoretical maximum speed; each part at the Ideal Cycle Time). Quality A Quality score of 100% means there are no defects (only good parts are produced).

Six Big Equipment Losses:

Six Big Equipment Losses Source: Japan Institute of Plant Maintenance (JIPM)

Visualizing OEE & the Six Big Losses:

Visualizing OEE & the Six Big Losses Plant Not Open Setup & Adjustments Breakdown Minor Stops Reduced Speed Production Rejects Startup Rejects Fully Productive Time Production Not Scheduled Plant Operating Time Quality Loss Fully Productive Time Speed Loss Net Operating Time Downtime Loss Operating Time Planned Shutdown Planned Production Time Total Time Total Losses Six Major Losses Availability Performance Quality X X = OEE Capacity Losses Perfect Production

Equipment Losses & OEE :

Equipment Losses & OEE Six Big Losses Downtime Losses Quality Losses Speed Losses Fully Productive Time Net Operating Time Planned Production Time Operating Time Equipment Average total operating loss 30-50% Breakdowns Setups & Adjustments Reduced Speed Minor Stops & Idling Defects & Rework Startup & Yield Loss Breakdowns per machine (stopped longer than 10 mins ) – less than once a month Setup/adjustment time – less than 10 mins Achieve ideal cycle times (design speed); increase 15% or more Minor stoppages and idling per machine – under 10 mins Rate (including products to be reworked) – less than 0.1% Startup yield – 99% or more of lot Ideal Cycle Time x Total Pcs Operating Time Good Pieces Total Pieces Operating Time Planned Production Time Availability Quality Performance Greater than 90% Throughput process - Greater than 99% Greater than 95% OEE Factors OEE = Availability x Performance x Quality

Breakdown Losses:

Breakdown Losses Largest of the six major equipment losses Caused by equipment defects which require any kind of repair. Examples: Tooling failures Unplanned maintenance General breakdowns Equipment failure Losses consist of downtime with labor and spare parts required to fix the equipment Magnitude is measured by downtime Availability

Setup & Adjustment Losses:

Setup & Adjustment Losses Caused by changes in operating conditions, e.g. beginning of production runs or start-up at each shift, changes in products and conditions of operation These losses consist of setup (equipment changeovers, exchanges of dies, jig and tools), start-up, and adjustment Magnitude is measured in downtime Availability

Practical Tips for Reducing Downtime:

Practical Tips for Reducing Downtime Provide clear visuals to indicate when the line is down, and escalate those visuals if the line remains down for an extended period of time. Train team members to react quickly, and provide multiple levels of escalation response (e.g., operator, supervisor, manager). Perform Quick Fix immediately without the help of outside resources. Then move on to a permanent fix and seek the help of outside resources if necessary. Perform a 3S Blitz - A clean and organized work environment creates better conditions for well-running equipment, which is why 5S is the foundation of TPM. Availability

Minor Stoppage Losses:

Minor Stoppage Losses Caused by events such as machine halting, jamming, idling, misfeeds , blocked sensors, etc. Generally, these losses cannot be recorded automatically without suitable instruments Formula: Losses = 100% - Performance Rate Many companies regard such minor stoppages as breakdowns in order to emphasize their importance, even though no damage has occurred to the equipment Performance

Approaches for Eliminating Minor Stoppages:

Approaches for Eliminating Minor Stoppages Steps Hints 1. Get a clear idea of the loss Take a closer look at the losses from minor stoppages. See if you can express them numerically. 2. Take care of slight abnormalities Slight abnormalities in the product or the processing equipment (ones that may or may not cause trouble) should be looked at one by one and treated as real problems. 3. Analyze the current situation Observe the situation carefully and analyze it. Consider every condition you find, without worrying about how likely it is to cause trouble. 4. Investigate every factor; identify and treat all abnormal conditions Don’t be bound by previous criteria for judging what’s important. Analyze not only the malfunctions but also everything that might be a symptom as a malfunction. 5. Determine optimal conditions Don’t assume that machine or conveyor parts and units are currently attached and assembled in the most appropriate ways. Performance

Speed Losses:

Speed Losses Caused by reduced operating speed – equipment cannot be operated at original or theoretical speed At higher operating speeds, quality defects and minor stoppages frequently occur, resulting in operation at a lower moderate speed Measure in terms of the ratio of actual operating speed to theoretical speed Performance

Quality Defect & Rework Losses:

Quality Defect & Rework Losses Caused by off-specification or defective products Rework Scrap Losses consist of labor required to rework the products and the cost of the material to be scrapped Measured by the ratio of quality products to total production Sometimes designated as “quality defects in process” in order to distinguish from defective products during start-up and adjustment operations Quality

Start-up (Yield) Losses:

Start-up (Yield) Losses Caused by unused or wasted raw materials Exemplified by quantity of rejects, scraps, chips, etc. Yield losses are divided into two groups Raw material losses resulting from product designs, manufacturing methods and equipment restrictions Adjustment losses resulting from quality defects associated with commencement of work, changeover, etc. I ncludes setup and adjustment losses plus yield losses, in terms of both time and material losses Quality

Ideas for Reducing Chronic Defects:

Ideas for Reducing Chronic Defects Ideas for Reducing Chronic Defects Look beyond the obvious Don’t worry too much about what has the most influence Think systematically and take measures against every abnormality Review all factors carefully Think systematically about the form the defects took to understand what the factors are Give all the possible reason for them Take abnormal conditions seriously Quantify the abnormality Use the inspection technology for your equipment to find signs of abnormal conditions Clarify the relationship between equipment and quality factors Determine the proper condition for each component to produce a quality result Manage the components according to those principles Monitor changes in the factors that need to be managed Understand changes over time through examination, measurement, and spot checks Determine treatment thresholds Quality

Roles in OEE Measurement:

Roles in OEE Measurement Role Description Manager Initiate project. Define scope. Identify best practices and ensure consistency across multiple facilities. Set and track improvement targets. Identify strategic improvement initiatives. Audit for sustainability. Supervisor Validate Ideal Cycle Times. Analyze losses across shifts and products. Prioritize improvement actions. Operator Capture reason codes. Drive improvement by looking for incremental opportunities to reduce loss during the shift.

Measuring OEE:

Measuring OEE Define what to measure Make data collection simple The OEE calculation Storing OEE data Share OEE results Use charts for visual impact

Sample OEE Calculation Using Excel:

Sample OEE Calculation Using Excel Production Data             Shift Length 8 Hours = 480 Minutes Short Breaks 2 Breaks @ 15 Minutes Each = 30 Minutes Total Meal Break 1 Breaks @ 30 Minutes Each = 30 Minutes Total Downtime 47 Minutes Ideal Run Rate 60 PPM (Pieces Per Minute) Total Pieces 19,271 Pieces Reject Pieces 423 Pieces Support Variable Calculation     Result   Planned Production Time Shift Length - Breaks 420 Minutes Operating Time Planned Production Time - Downtime 373 Minutes Good Pieces Total Pieces - Reject Pieces 18,848 Pieces OEE Factor Calculation     My OEE%   Availability Operating Time / Planned Production Time 88.81% Performance (Total Pieces / Operation Time) / Ideal Run Rate 86.11% Quality Good Pieces / Total Pieces 97.80% Overall OEE Availability x Performance x Quality 74.79% OEE Factor World Class My OEE% Availability 90.00% 88.81% Performance 95.00% 86.11% Quality 99.90% 97.80% Overall OEE 85.00% 74.79%

Methods of Data Capture:

Methods of Data Capture Reactive Slow reaction Historical information Snap shot of loss during review Inaccurate Perceived losses on equipment Proactive Rapid reaction Real time Continuous visualisation Accurate Real losses on equipment Manual Data Capture Automated Data Capture

Getting Started with OEE Measurement:

Getting Started with OEE Measurement Start with manual measurement Focus on loss Expand to the six big losses Set incremental targets Monitor the constraint Compare cautiously

OEE Measurement Checklist:

OEE Measurement Checklist Check Point ✔ 1 Do you have an ongoing OEE score for each equipment? 2 Do you have written standards for how to measure OEE? 3 Are Availability, Performance, and Quality calculated? 4 Are reasons assigned to all Availability Losses? 5 Is Performance based on validated Ideal Cycle Times? 6 Are losses reviewed (e.g., weekly) to drive improvement actions? 7 Do you measure the Six Big Losses (to better understand losses)? 8 Do you have a documented process for improving OEE? 9 Do you have an active incremental improvement target for OEE? 10 Is your OEE measurement and data collection automated?

Improving OEE:

Improving OEE We measure OEE to monitor the condition of the equipment The purpose of measuring OEE is to drive improvement Sustained improvement requires a dedicated approach, with management support

Approaches to Improving OEE:

Approaches to Improving OEE 5 Why Analysis Autonomous Maintenance Focused Equipment & Process Improvement Quick Changeover Poka Yoke (Mistake-Proofing) P-M Analysis

Example of 5 Why Analysis:

Example of 5 Why Analysis Why? Answer 1 Why is there oil on the floor? Oil leaks from the cylinder rod when activated. 2 Why did oil leak? The O-ring was cut. 3 Why was the O-ring cut? The rod was flawed. 4 Why was the rod flawed? Dirt in the oil abrades the rod. 5 Why did dirt get in the oil? There are holes and gaps on the upper plate of the tank. 5 Why Analysis

Three Key Tools for AM:

Three Key Tools for AM Key Concepts Shop-floor based activities Operator conducted Operator enhancing Team activity Autonomous Management TPM Foundation Part of the job! 3 Key Tools Activity Board Meetings One Point Lessons Autonomous Maintenance

Examples of Focused Improvement Events:

Examples of Focused Improvement Events Relocating gauges and grease fittings for easier access Making shields that minimize contamination Centralizing lubrication points Making debris collection accessible Focused Improvement

Improving OEE Through Kaizen Event:

Improving OEE Through Kaizen Event Focused Improvement

The Three Stages of SMED:

The Three Stages of SMED Before SMED Internal and external setup not differentiated Stage 1 Separate internal and external setup Stage 2 Convert internal setup to external setup Stage 3 Streamline all aspects of setup Quick Changeover

Poka Yoke (Mistake-Proofing):

Poka Yoke (Mistake-Proofing) Poka Yoke  is a Japanese term that means “mistake-proofing” Poka Yoke refers to techniques that make it impossible to make mistakes. Poka Yoke helps people and processes work right the first time. Poka Yoke

Basic Steps of P-M Analysis:

Basic Steps of P-M Analysis Physically analyzing chronic problems according to the machine’s operating principles Defining the essential or constituent conditions underlying the abnormal phenomena Identifying all factors that contribute to the phenomena in terms of the 4M framework P-M Analysis

Critical Success Factors:

Critical Success Factors Long term commitment Measure and improve OEE Start with 5S, then move to Autonomous and Preventive Maintenance Launch Kaizen events and build teamwork Apply other tools as needed, e.g. SMED Celebrate small successes

About Operational Excellence Consulting:

About Operational Excellence Consulting

About Operational Excellence Consulting:

About Operational Excellence Consulting Operational Excellence Consulting is a management training and consulting firm that assists organizations in improving business performance and effectiveness. The firm’s mission is to create business value for organizations through innovative operational excellence management training and consulting solutions. OEC takes a unique “beyond the tools” approach to enable clients develop internal capabilities and cultural transformation to achieve sustainable world-class excellence and competitive advantage. For more information, please visit www.oeconsulting.com.sg

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