6 OEE overview

Introduction to OEE (Overall Equipment Effectiveness)

John R. RattrayMemex Automation [email protected](905) 635-0590 Mobile: (416) 460-7637

OEE OVERVIEWIntroduction to OEE

“In the Land of the Blind, the One-Eyed Man is King”

Metrics gives ‘Sight’ to the Total Organization 2

OEE OVERVIEWIntroduction to OEEWhat if you had a ‘Tool’ that could help increase manufacturing efficiency 10 - 50%

$$$$

$

Profitability would increase 20 – 300%

3

OEE OVERVIEWIntroduction to OEEOEE Defined

Overall Equipment Effectiveness (OEE) is a quantitative way of measuring how well a standalone or a flow-line production system operates in making good product relative to what the system could make if it operated perfectly, 100% of the scheduled time based on specific products and processes.

OEE is a Key Benchmarking metric used to define the Throughput Gap between Current State and ‘World Class’ for your system.

“World Class” is considered to be 85%. Good companies run in the 95+% range.Many manufacturers run in the 30-60% range.

4

OEE OVERVIEWInitial Foundation“OVERALL EQUIPMENT EFFECTIVENESS: A Powerful Production/Maintenance Tool for Increased Profits” Robert C. Hansen, PE., CMRPIndustrial Press, New York, NY 2001

Owner: RC Hansen Consulting, LLC970-490-1720 cell: 970-481-314590 % of my Clients have increased Profits by over $1 Million Dollars in the first year post engagement.

5

OEE OVERVIEWInitial Foundation

Correctly identifying improvement targets often leverages “Hidden Factory”

Financial Benefit Opportunities of > 10 : 1 over the next alternative.

“What IF?” a Work Center improved OEE by 3 points (approx. a 5% ↑ in OEE) and we sold everything?

WC A ↑ IFO by $625,000 WC B ↑ IFO by $48,000

6


Providing everyone in the organization the range of OEE improvement tools is valuable.

Identifying exactly where and when to focus your Key people (and avoid activity traps):

Priceless!!!

7


Real-time machine visibility with OEE metrics on any Machine

Dashboard for ease of viewing – reduce downtime

Connect production floor to Microsoft AX

Shop Floor to Top Floor

Increase Productivity

Embrace Manufacturing Efficiency

All methodologies require data to support decision making Lean 6S, OEE, TEEP, TPM, Takt Time, TQM, Kaizen, Continuous Improvement

Collect actual automated machine data to prove the case

8

OEE OVERVIEWInitial FoundationThe OEE Industry Standard gives a guideline in order to find ALL potential losses in effectiveness.

An average machine in an average

factory runs about 35 to 45% OEE.

So it is losing 55 to 65% capacity!

While - not running

- running at reduced speed

- or producing parts out of spec.

How come then, that the average

reported numbers are way over 80%?

It is a matter of definition, What you are not looking for you will not find.To really reveal the hidden machines in your factory, ALL Losses need to be defined and visualized

www.oeefoundation.org

9

OEE OVERVIEWWhy use OEE?

10

Reduce Unplanned DowntimeReduce Setup and Changeover TimesBetter Management of Resource Allocation,

Planning and SchedulingOperator Productivity IncreasesEfficiency with Automated Data CollectionBetter Root Cause AnalysisImprove Quality, Minimize RejectsIdentify Bottlenecks and ConstraintsImprove On-Time DeliveryManage Operations Pre-emptively &

ProactivelyMeasurably Improve Profitability

Productivity Increases of 10-50%

OEE OVERVIEWWhy use OEE?

OEE is integral to Successful LEAN manufacturing

Used adroitly, Strategic OEE means Millions of $$ of Profits

‘Financial OEE’ becomes a Navigational tool for Success

OEE = Quality, Reliability and Manufacturing Best Practices

World Class OEE = “Least Price Provider” of products

11

OEE OVERVIEW

OEE

OEE

OEE

Why use OEE?OEE is about Adding Value

Characteristics of Top Quartile Manufacturing OrganizationsOEE is the visual metric of Total Productive Manufacturing

TPM is integrated to successful LEAN Manufacturing

Constantly improving their ‘Best Ever’ performance

Synergizing every player’s contribution

Effectively Communicating new ideas or conditions

12

OEE OVERVIEWWhy is OEE so important?

If you were told that your department was running flat out you might reasonably assume that the equipment was running efficiently and effectively.

What if the equipment only ran for 65% of the time?

What if when it ran it ran at 80% of its speed ?

What if only 90% of the parts it made are good?

Individually these performance measures seem to indicate an OK piece of equipment, but is it a true picture?

What is having an impact on these performance figures?

13

OEE OVERVIEWRoot Cause Analysis

But this is only what we see on the surface

our habits and work procedures

Root Cause

Causes

Effects

Problems

What is happening under the surface?

what is causing our habits and work procedures

A root cause is a blind spot beyond our reach they are hidden deep down, they feed into or create many of the causes that we see

under the surface

Are defined in terms of

their...

How deep are you willing or able to dig?

The causal or contributing

factors that, if corrected, would

prevent recurrence of the identified

problem.

The “true” reason that

contributed to the creation of a problem, defect

or nonconformance.

14

OEE OVERVIEWWhat is the Business Case?OEE and the effect to the Bottom Line

Business Case

Revenue: 10,000,000.00$ (estimated)Current state OEE: 60% (assumed)Income from Operations (IFO): 1,000,000.00$ (assumed)

A 10% improvement in OEE (capacity utilization) will increase IFO 22% (Bob Hansen, Overall Equipment Effectiveness, pp 47 – 66).A 22% improvement to an IFO of 1,000,000.00$ is 220,000.00$

Monthly that equates to 18,333.33$ left "on the table"

The assumed figures may be quite conservative, however they do prove a point.The ROI for our solution is three to six months depending on the number of machines monitored.After the ROI period there is at least 18,333.33$ every month added to the bottom line.

220,000.00$ in additional IFO every year.Without implementing a solution such as MERLIN, you are losing

15

OEE OVERVIEWHow do we use OEE?

OEE is only a measure, its benefits will be lost if the shortfalls it identifies are not acted upon.

OEE is a total measure of performance but the data used to produce it must be used to prioritise improvement tasks.

The purpose of measurement is to identify losses, remove waste and drive improvement.

OEE should be used to support the Total Productive Maintenance (TPM) approach and the tools it supplies.

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OEE OVERVIEWHow do we use OEE?Keith Mobley, UPTIME Magazine

“Too many corporations are run based on the instincts of its executives rather than on data that define a true picture of the market and operating performance of the plant.”

“One absolute that I have learned is that sustainable change must be lead from the top of the organization. ……….. Simply stated, change must be led from the top and implemented from the bottom.”

“The first hurdle that must be overcome is simply convincing the workforce that there is a need for change. ……… ‘profit hides inefficiency and ineffectiveness’”

“No one in a profitable company, even when profits are marginal, ever asks how much profit we are leaving on the table?”

17

OEE OVERVIEWWhat are the benefits of OEE?FOCUS

Highlight priorities for change.

SIMPLICITY Even complex processes can be measured.

FEEDBACK Before and after change.

BENCHMARKING Objective comparisons.

TARGET SETTING Setting achievable goals.

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OEE OVERVIEWHow do I measure OEE?

OEE =

AVAILABILITY

x PERFORMANCE

x QUALITY19

OEE OVERVIEW

20

Overall Equipment EffectivenessOEE % = Availability x Performance x Quality

Shows group or plant output as a percentage of maximum capacity

World Class = 85% (= 95% x 95% x 95%) It is not uncommon to > 90%!

Availability %Percentage of scheduled time that the operation is actually

operating.Availability % = Run Time / Scheduled Time

Performance %Speed at which the Work Center runs as a percentage of its

designed speed or ideal cycle time or most often considered the “Standard”.

Performance % = (Parts Made x Standard) / Run Time Quality %

Good Units produced as a percentage of the Total Units Started.

Quality % = Good Units / Units Started

How do I measure OEE?

OEE OVERVIEWHow do I measure OEE?

REQUIRED: GOOD SHOP FLOOR DATA FOR QUALITY ANALYSIS

Data CalculationsAvailability = C/BOEE = D/B

Utilization = C/ATEEP= D/A

21

OEE OVERVIEWWhat does that mean?

OEE is a Key Performance Indicator (KPI) that can measure the impact of change on a process caused by eliminating process, or equipment losses

OEE is used to measure the performance of equipment and the process - not the operator.

22

OEE OVERVIEWWhat does that mean?Organizations that train and strategically use the OEE Tools and methods presented in the modules have a clear roadmap to quickly achieve “Top Quartile” competitive advantage in their line of business.

‘Top Quartile’ Winning Teams have common best practices; Detailed Measurement of their performance

Constantly improving their ‘Best Ever’ performance

Synergizing every player’s contribution

Effectively Communicating new ideas or conditions

Being the Provider of Choice re: Price and Delivery23

OEE OVERVIEWWhat does that mean?Make visible specific machine status for everyone

24


T&T Oct. YTD Vol and Maint. Labor $

0%10%20%30%40%50%60%70%80%90%

100%

WC Number

To

tal Y

TD

Vo

l

0%10%20%30%40%50%60%70%80%90%100%

Vol YTD Oct Proj. Vol Sept-Oct TSNS Maint. Labor YTD Oct

25

OEE OVERVIEWPareto AnalysisWhen Do I Use It?

Pareto Analysis is a data graphing analysis based on the Pareto principle which focuses on identifying the 20% of sources that result in 80% of the problems

A Pareto Analysis can be applied to projects of all sizes where quantifiable data exists on the process. It is often one of the first means of testing a hypothesis

It is particularly useful for large scale projects where analysis must be focused on those areas most likely to be causing problems

A Pareto analysis should be used in the Measure and/or Analyze phases

Data should be gathered regarding the problem to be solved and the various factors that may be affecting it

This data can the be placed in Microsoft Excel, sorted, and placed into a histogram for easy analysis and viewing

Who Should Use It?

This analysis can be conducted by anyone on the team

What Is It? How Do I Use It?

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OEE OVERVIEWOEE and the Six Big Losses

Start up losses6

Defects in process and rework5

Speed4

Idling / minor stoppages3

Breakdowns1

Setup / adjustment2

Planned Downtime

Equipment

Six Big Losses

Effective operating time

Actual operatingtime

Available operating time

Available time

Total Available time

28

OEE OVERVIEWAvailability“The percentage of time equipment is actually running when we need it”

AVAILABILITY= AVAILABLE TIME – UNPLANNED DOWNTIME x 100%

AVAILABLE TIME

Where:-

Available Time = Total Available Time – Planned Downtime*

*Note :- Planned Downtime could be PM, no scheduled work, breaks, etc.

Breakdowns1

Setup / adjustment2


Available time

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OEE OVERVIEWPlanned vs. Unplanned DowntimePlanned

Excess capacity. Planned breaks. Planned Maintenance. Communications briefs / team meetings.

Unplanned (Losses) Breakdowns. Set Ups and Adjustments. Late deliveries (material). Operator availability.

Note :

Planned time such as breaks, meetings and maintenance can be considered as losses (useful for encouraging ideas on how to minimise their disruption) as long as a consistent approach is taken.

30

OEE OVERVIEWProductivity“The difference between the potential output and actual output, when the equipment was available”

PRODUCTIVITY = IDEAL CYCLE TIME x ACTUAL OUTPUT* x 100%

AVAILABLE OPERATING TIME*Note :- Actual Output is the Quantity of good & bad parts

Idling / minor stoppages

3

Speed4Actual operatingtime


31

OEE OVERVIEWOperating Speed vs. ProductivityOperating Speed Rate

The % of actual cycle time against ideal cycle time.

Productivity The Operating Speed Rate factored with interruptions to

constant processing, i.e. idling and minor stoppages.

32

OEE OVERVIEWQuality“The total good parts produced expressed as a % of the total parts produced”

QUALITY= PARTS MADE – DEFECT QUANTITY x 100%PARTS MADE



Start up losses6


33

OEE OVERVIEWProcessed vs. Defect Quantity

Parts Made The total quantity of parts produced in the available time

Defect Quantity The quantity of parts that did not meet the required standard

(including rework) in the available time

34

OEE OVERVIEWOEE and the Six Big LossesEquipm

entSix Big Losses

Breakdowns

Setup / adjustment

1

2


4 Speed

5Defects in process and rework

Start up losses6




Available time

35

OEE OVERVIEWSix Big Losses – What Are They?Six Big Losses

Breakdowns1

Setup / adjustment2


Speed4


Start up losses6

The time lost due to key equipment breaking down or deterioration which causes the production to be stopped for more than 10 min.

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Speed4


Start up losses6

Breakdowns1

Setup / adjustment2

The time lost through “product change over and adjustment ” to the point where the production of the new product is completely satisfactory.

37


Speed4


Start up losses6

Breakdowns1

Setup / adjustment2


The time lost through key equipment being stopped for less than 10 min.

Time lost during the standard cycle when the equipment is not adding value.

38



Start up losses6

Breakdowns1

Setup / adjustment2


Speed4

The time lost through key equipment not producing parts at its optimum rate.

39


Start up losses6

Breakdowns1

Setup / adjustment2


Speed4

Defects in process and rework

5

The time lost through key equipment not producing parts that meet the specified quality standard.

The time lost through key equipment being utilised to rework sub-standard parts.

40


Breakdowns1

Setup / adjustment2


Speed4


Start up losses6

The time lost through key equipment not producing parts to the specified quality standard, following start up and before the equipment achieves controllable production conditions.

41

OEE OVERVIEW

42

Qua

lity

Che

ck

Chi

p B

in F

ull

Coola

nt to

p up

Tooling Help

Engineering

Maintenance

Raw

Material

Donnage R

eq’d

Crane Req’d

Relief Req’d

????????

????

????

IFO

“Support the Internal Customer”

OEE OVERVIEW

43

Login / Logout of support Staff via “Operator Portal” application.

Email support from the “Operator Portal” application via operator request to the requested support personnel

Visualization tools to depict exactly what the status is on the shop floor of each monitored asset to management, operators, and support staff

Utilize the report generator and auto report scheduler to send out utilization and production reports regularly to review daily and weekly progress opposite set benchmarks.

“Support the Internal Customer”Tools required

OEE OVERVIEW

44

Encouragement to adopt the cultural change necessary to fully implement. Set benchmark goals and start on the path to achievement.

Enforce the rules such as operator and resource Login / Logout.

Allocation of required support resources who are charged with responding to operator initiated support requests.

Issue required email capable handheld devices to shop floor support personnel so that they can respond to operator requests in a timely manner.

Regular review of operator requirements to ensure system meets expectations

Review data collected, revisit benchmarks, ensure that changes made are sustainable and permanent.

“Support the Internal Customer”Tools required

OEE OVERVIEWOEE Overview

Understanding the Power of OEE1. Learning the Basics of OEE Metrics

OEE

BASICS

45


OEE combines manufacturing aspects of: Availability – Actual uptime vs. scheduled time

Performance – Speed factor, actual rate vs. ideal rate

Quality – Good units vs. total units

OEE = Availability × Performance × QualityTEEP = Utilization × Performance × Quality

OEE and TEEP directly correlate to the amount of good product produced (transferred) versus total possible product.

46

OEE OVERVIEWOEE OverviewOEE (Overall Equipment Effectiveness) is the measure of the amount of good product produced compared to the amount of product that could have been produced if the manufacturing system operated perfectly for its entire scheduled time.

Total Effective Equipment Performance (TEEP) is the measure of the amount of good product produced compared to the amount of product that could have been produced if the manufacturing system operated perfectly for the total time (calendar time) over the time period under consideration.

47



2. Maintenance/Production OEE Tools

OEE

BASICS TOOLS

48


TPM (OEE)

Toyota Prod. System

Breakdowns

Setup & Adjustment

Idling and minor Stoppage

Reduced Speed

Quality Defects

Reduced Yield From Startup

Implementing Flow Process

Eliminating Defects

Stockless Production

Reduced Lot Size

Quick Setup

Standard Cycle Times

Standard Production Sequence

Standard Idle Time

Visual Control and on Line Stop Alarm

Improved Machine Operability

Improved Maintainability 49

OEE OVERVIEWHow to collect data for OEEKey Points:

OEE is a measure of the equipment or process, not the operators productivity.

Keep it simple. Ensure the process of measuring and applying OEE involves

the people who use the equipment. Make data collection second nature not a hindrance. Understand the process. Obtain the data on fixed frequency. Snap shot v continuous. Units of time (1 min, 10 mins, 30 mins, etc.). Automatic or manual data collection. Ownership. Partnership – those completing sheets and those

collecting/collating. Regular communication of results. Response to trends, peaks and troughs. 50

OEE OVERVIEWHow to collect data for OEEExample: Three Hourly Data Sheet

51

OEE OVERVIEWHow to collect data for OEE

AVAILABILITYGross Time (in minutes) APlanned Down Time (in minutes) BNet Available Time (in minutes) C=A-B

Non planned stoppages (in minutes) DOperating Time (in minutes) E=C-DAVAILABILITY F = E/C

PRODUCTIVITYOutput GStandard Cycle time (mins/ unit) HPRODUCTIVITY I= (HxG)/E

QUALITYDefect Quantity JQUALITY K = (G-J)/G

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OEE OVERVIEWConnected Manufacturing

53

mainframes

1960

batch computingtime sharing

minis

distributedcomputing

networkedpersonalcomputing

micros / PC’s

open systems &client servers

cooperative computing

universal computerconnectivity

ConnectedManufacturing Model

20001980 19901970

Technological

Shift

The technology is here today, the tools are readily available and cost effective

2010

Internet

Universal MachineConnectivity

“Following the computer and the Internet, every machine tool will become a node on the network creating greater efficiency.”

53

OEE OVERVIEWAutomated Data Collection

54

HardwareAbstraction Layer

Ax9150 UMI

Profit

Level 4

Level 3

Level 2

Level 1

Level 0

Mfg. Execution System

Dist. Control System

Connection

Machine

MS Dynamics AX

From AX: production plan, work ordersTo AX: production performance results

Machine ConnectivityISA-95 Standards

55

OEE OVERVIEWExploring the Power of MESADC + OEE = Profits

COLLATERAL BENEFITS OF MESStatistical evaluation of variability (Goal Setting)

Best Ever Performance by Product/Process/Team

Modeling and Analysis of the “Hidden Factory”

Maintenance and Quality information

Timeline charting of key events

Learning Curve Information / Setting Planning ValuesADC = Automatic Data CollectionMES = Manufacturing Execution System 56

OEE OVERVIEWHow to eliminate Losses?

57




3. Financial OEE

OEE

BASICS TOOLS

FINANCIALOEE

58


59


Financial OEE

60


The Power of Financial OEE to expose the “Hidden Factory”

Practice Example Factory Scenario:Current State Annual Volume = 223,650 units IFO was $4,592,000.

‘Financial OEE’ Analysis: All Workstations at 85% OEE, and 99.8% Quality

Factor

Volume increased by 33,787 units a 15 % increase

IFO increased by $4,544,000 a 99 % increase

61




3. Financial OEE

4. OEE Data AnalysisOEE

BASICS TOOLS ANALYSIS

FINANCIALOEE

62


OEE Data Analysis

Determine Variability, Capability

Develop ‘SMART’ Goals

Analysis of Target Alternatives

63


OEE Data Analysis1. OEE: The Seen and Unseen

2. Real-time Performance Measurements - databases

3. Exposing Variability; Determining Capability

4. Developing OEE Performance Curves

5. Setting ‘SMART’ Goals for Improvement

6. Data Analysis for Target Selection

7. Consensus Building using Cross-functional Teams

8. Combining Subjective-Objective data into a Decision Table

64


Learning to ‘see’ OEE As a Strategic Tool and a Monitoring Tool

As a Reliability metric and a Business metric

As a leading metric and a lagging metric

Using OEE as a ‘fair’ benchmarking metric

Quantify the value of each OEE factor

65

OEE OVERVIEWLean Thinking

Lean Thinking Management System ModelThe Lean Management System Model reflects graphically,

the integration of Hoshin Kanri (Strategic Deployment), Deming’s PDCA Wheel (plan–do–check–act) four-step model for carrying out change with the Toyota Way 2001 principles (Continuous Improvement and Respect for people), and how the lean management system is driven by customer requirements and level of satisfaction.

The Lean Thinking Management System is used to implement the 5 Elements of Lean Thinking.

66

OEE OVERVIEWThe Deming Cycle

Typical PDCA: Plan quickly

• Address Symptoms

Do immediately

• Jump to conclusions

Check roughly

Act pretty much the way you did before

High Velocity Organization PDCA: Plan deeply

• Discuss actual situation and target with everyone affected

• Really understand/model the problem and its root cause

Do many quick experiments• Validate your thinking

Check implications carefully

Act systematically• Update and deploy standards and

checklist disciplines

...Data based problem solving

67

OEE OVERVIEWLean Six SigmaBalance and Complexity and Increase Reliability

Reliability (Six Sigma)

Sim

plicit

y (

Lean

)

Simple, high reliability

Complex, high reliabilityComplex, low reliability

Simple, low reliability

Ente

rpris

e Le

an

• Lean and Six Sigma are natural allies in

pursuit of business performance

improvement

• Lean reduces process and business

complexity

• Six Sigma increases

process reliability and enterprise

effectiveness

• Lean and Six Sigma amplify each other and

accelerate strategic benefits

• Together, Lean and Six Sigma offer a

significantly higher probability of success68

OEE OVERVIEWCurrent Condition

…Ask what we already knowSpecific, detailed, quantitative, concise

Tables, graphs, histograms, value-stream maps, diagrams

Highlight exactly where problem occurs Baseline to compare to metrics after

countermeasures are applied

Engage everyone affected by or causing symptoms

Build Consensus on what is Symptoms / Undesirable Effects everyone can

see Foundation of authority to experiment with

countermeasures

Update as understanding improves

69

OEE OVERVIEWGoal – Next Target Condition…Model what we expect

What baseline change is wanted? What does perfect look like? What does the organization need? Realistically attainable target condition?

Mentor ensures that the owner has both

Plausible Hypothesis Based on best available model/understanding of

how the system works/could work

Consensus among stakeholders Target is attainable and desirable.

Update as root cause and countermeasures developed70

OEE OVERVIEWRoot Cause

…Model Cause & EffectIdentify underlying problem(s) causing symptoms

Root cause is typically faulty thinking or assumptions

Addressing the root cause(s) improves all levels of symptoms/undesirable effects/visible damage.

Build consensus among stakeholders Broad agreement on Cause & Effect network Reflect best current knowledge about how things

work

Some techniques: (explained of following slides) Fishbone Diagram 5 Whys Histograms Pareto Analysis Root Cause Analysis

71

OEE OVERVIEWRoot Cause AnalysisWhen Do I Use It?

A tool used to identify contain and analyze a problem, defining the root cause, defining and implementing actions to minimize or eliminate the root cause and verification that corrective action prevented recurrence of then problem.

When a problem is not easy to define without considerable analysis

While a root cause analysis can be used in any phase of a continuous improvement project, it is most commonly deployed in the Define and Improve phases

Involve a team to collect and analyze data using other problem solving tools such as Pareto, 5 whys , brainstorming etc.

Who Should Use It?

A root cause analysis can be completed by anyone on the project team

It is recommended that project leaders be involved in its creation to ensure coordination of the analysis

What Is It? How Do I Use It?

72


But this is only what we see on the surface

our habits and work procedures

Root Cause

Causes

Effects

Problems

What is happening under the surface?

what is causing our habits and work procedures

A root cause is a blind spot beyond our reach they are hidden deep down, they feed into or create many of the causes that we see

under the surface

Are defined in terms of

their...

How deep are you willing or able to dig?

The causal or contributing

factors that, if corrected, would

prevent recurrence of the identified

problem.

The “true” reason that

contributed to the creation of a problem, defect

or nonconformance.

73


Gather Data

Define Problem

Get to the Root Cause

Create a Solution

Implement and Assess

There are tools you can use to stay on track and ensure

you arrive at a right destination.

It is not a straight forward journey. You

may end up in a dead end. It requires patience and persistence.

74




3. Financial OEE

4. OEE Data Analysis

5. OEE for LeadershipOEE

BASICS TOOLS ANALYSIS

FINANCIALOEE

VISION

75


OEE for Leadership

Where?

When?

What?

Why?

76


OEE for Leadership

Where?

When?

What?

Why?

$$$$$

77


OEE for Leadership

78


OEE for LeadershipOEE Value Stream Analysis as a Strategic Tool

Where?

When?

What?

Why?

79




3. Financial OEE


5. OEE for Leadership

6. OEE Value Stream Mapping

OEE

BASICS TOOLS

FINANCIALOEE

ANALYSIS

VISION

80


OEE Value Stream MappingWH

ER

E, W

HEN

, WH

AT T

OO

L, W

HY

?

WH

ICH

ALT

ER

NATIV

E?

BENEFIT $$$

TIME

81


OEE Value Stream MappingMaximizing IFO though strategic analysis

Strategically Focused Targets, Aligned and Engaged from top to bottom, Solves the Success Riddle

82

OEE OVERVIEWValue Stream

• Identify how you are delivering value to the “CUSTOMER”.

• Both value added and non-value added activities.• Focus on reducing or eliminating non-value added

activities.

The entire set of activities across all parts of your organization involved in delivering your product or

service.

83


OEE Value Stream Mapping

A B

C

D

E

Rough Cut & Shape

Sand and Paint

DrillAnd Buff

Drill and Buff

Assemble & Palletize

Product A

Product CProduct B

84




3. Financial OEE


5. OEE for Leadership

6. OEE Value Stream Mapping

OEE

BASICS TOOLS

FINANCIALOEE

ANALYSIS

VISION

7. OEE Value Stream Analysis

NEWTOOLS

SHIFT GOALS

BUSINESSGOALS

$$$$ $$$$$$

85


OEE Value Stream Mapping

A B

C

D

E

86


OEE Value Stream MappingProduct A

Product C

Product B

Product D

A B

D

E

C

87

OEE OVERVIEWOEE OverviewIFO BENEFITS TABLE #’S IN 1,000’S BASE CASE IFO = $4,592

WC’S A B C D E

+3 Pts, Same Vol.Vol. = 223,650 $42 $48 $12 $13 $28

+3 Pts, andRefill the Factory

Vol. = 233,615(+9,965 units)

$625 $48 $12 $13 $28

Improving WC A has the possibility of 13 times more value than any other WC for the condition of +3 OEE Pts. higher Availability/Reliability From 68.0 % to 71.0 %

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OEE OVERVIEW

$$$$

$$

OEE Training

Understanding the Power of OEE 14 Modules will cover the 7 study areas

Each Module will bring game changing tools for application

In total, the Best Business Strategy is revealed

89

OEE OVERVIEWOEE Training

The Overview module demonstrates the Delivery Format

Each Area of Study is contained in an individual CD

Each module on the CD is a narrated PPT Presentation

Modules are provided both With and Without the ‘Refocus Game’

Modules are ≈40 min. leaving 10-15 min. for group discussion

The ‘Practice Factory’ Base Case excel workbook example templates and 14 “What IF?” investigations are provided on the final CD. The workbooks can be adapted to model your specific Product Flow lines and generate your ‘Financial OEE’

OEE-College.com Training Modules

90


Recommended use of the training modules would be:

Designate Productivity Improvement Leaders for High Value Line of Business (LOB) flow lines on your plant site. These individuals should become familiar with the Practice Factory example workbooks and be able to generate new Base Case workbooks and Benefits Tables specific to their LOB flow line.

All of the Plant Leadership should review all of the modules to gain knowledge and understanding of the critical steps for Financial OEE so everyone is one the same page.

Shop floor people should review at least the first 5 areas of study and practice applying all of the ‘Tools’ at their workstations.


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The OEE-College.com set of Training Modules cover 7 key areas of Study that span from OEE Basics to Financial OEE.

Financial OEE is a New Tool for Plant Leadership Teams to expose exactly where to apply resources for the highest Return On Investment (ROI) relative to a stipulated Product Mix.


Financial OEE Overview

Understanding the Power of OEEBy Robert C. Hansen, PE., CMRP, Author

Owner RC Hansen Consulting, LLC970-490-1720 cell 970-481-3145

[email protected] 92

OEE OVERVIEW

$$$$

$

OEE Summary

Increase manufacturing efficiency 10 - 50%Critical metric of TPMWorld Class Best PracticesVisibilityCulture of ProductivityCompetitive EdgeProfitability increase 20 – 300%

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OEE OVERVIEW

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Questions and Answers

OEE OVERVIEWIntroduction to OEE

The Power of OEEGenerate more Profits

$$$$

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John RattrayMemex Automation Inc.

905-635-0590 cell [email protected]

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