OEE for Operators.pdf

8/19/2019 OEE for Operators.pdf

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S H O P L O O R S R I S


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1999 by Productivity, l nc

\

rights resenetl. No part of this book m y be reproduced or utilized in airy fonn or

by

any means, electronic or mccl~ an ica l, ncluding photocopying, recording, or

y

any infor-

omtion sto ng e and retrieval system, without

permission

in writing from the poblislicr.

Additional copies of is book and a learning package for lead ing a book study gro up arc

;w;~ilable rom the publislrer. Disco unts are a d a b l e for multiple copies through the

Sales Department (800-394-6868). Address all other inquiries to:

i'roductivit)., lnc.

P.O. Box 13390

Portland OR 9721 3.0390

United States of Arnerica

Teleplionc: 503-235-0600

I k : 503-235-0909

Email :

[email protected]

Cover by h'lnrk t;Veiirstei~t

Cover illnstratioo

by

Gar) Ibgaglia

Page design and composition by William Ii . B n~ ns on , ypography Services

Gmp hics by Guy Buster, Lee Sm ith. and H ann ah Borrrier

Printed and botrnd by h,lalloy Lithographing, Inc. ll tire United Stales of Arnerica

Libra? of Congress

Cataloging-in-Publicatiort

Data

O E E for operators ovcrall equ ipm ent cffectiverressI created by the f'roductivity

Developnient

Team.

1. c1n.

Includes bil~liograplrical erereoces.

ISBN 1-56327-221-0 (d k. psper)

1. Ibtal productive mainteni~ace.

2.

lrrdustrial equiprnerrt.

1. Productivity DeveIopment'Tcam (Productivity f'ress)

TS192.032 1999

658.?7-dc21

99-3532

C I P


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Publisher s Message

Getting Started

The Purpose o f This Book

What Th is Book i s Based On

Two Ways t o Use This Book

How t o Get the M os t Out of Your Reading

Overview o f the Contents

Chapter1 About TPM and

OEE

Chapter Overview

What s TPM?

What

is

OEE a nd Why

s t

Important?

Quantity Over Time is Only Part of

OEE

Effectiveness Focuses on the Equipment Not the Person

The Purpose of Measurement Is Improvement

The Role of th e Shopf loor Team

in

Us ing OEE

In Conclusion

Summary

Reflections

xv

xv

xvi

xvii

xix


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C O N T E N T S

Chapter

2

Understanding Equipment

Related Losses

9

Chapter Overview

9

Losses Reduce Overall Equipment Effectiveness 1

Visualizing OEE and the Losses

12

vailability

Performance

Quality

Availability: Downtime Losses

Failures and Repairs

Setup Time

Other Los ses to vaiiabiiity

Performance: Speed Losses

Reduced Operating Speed

Minor Stoppages

Quality: Defect Losses

Scrap and Rework

Star tup and Reduced Yield

In Conclusion

Summary

Reflections

Chapter

3

Measuring OEE

Chapter Overview

Closing the Feedback Loop

Collecting OEE Data

Defining What to Measure

Making Data Collection Simple

Processing OEE Data

The OEE Calculation

Storing OEE Data

Reporting OEE Results

In Conclusion

Summary

Reflections


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Chapter

4

mproving

O

Chapter Overview

Why Analysis

Autonomous Maintenance

Focused Equipment and Process Improvement

Quick Changeover

Stage :Separate Internal and External Setup

Stage 2: Convert Internal Setup to External Setup

Stage : Streamline All Aspects of Setup

ZQC (Mistake-Proofing)

Poka-Yoke Systems

P-M Analysis

In Conclusion

Summary

Reflections

Chapter

5

Reflections and Conclusions

Chapter Overview

Reflecting

on

What You ve Learned

Opportunities for Further Learning

Conclusions

Additional Resources on TPM, OEE, and

Equipment-Related Losses

Training

and

Consulting

Packaged Education and Support

Conferences and Public Events

Newsletter

Website

bout the Productivity Development Team


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Smoothly operating equipm en t is critical for inanufacturing today.

Most processes use m ach ines to add the value c~ istorners ay for.

In an environment that is more competitive than ever, factory

ma chin es have to work dependably to supply products \vhen the

custo~iier eeds them. Yet factories eveqwliere are plagued with

ma chine problems of one type or another. Tl ie conipanies that are

pulling ahead in the production race are those that understand

their equipnient problems and take steps to eliminate them. T h e

key to this understandiiig is overall equipment effectiveness.

Overall e quipm ent effectiveness (O EE) is a me asure that shows

how well the equipment is running. It indicates not just how

many procluets tlie m ach ine is turning out, bu t how mu ch of the

time it is actually working-and what percen tage of the outpu t is

good quality. Because it reflects these th ree imp ortant things,

O E E is an important indicator of tlie healtli of tlie equipm ent.

Tl ie condition of the equ ipm ent isn't just a ma inte nan ce issue

anymore. In Total Productive Mainte nanc e ( TP M ) approaches,

equipme nt operators help prevent equ ipme nt problems through

their knowledge and familiarity with the machines. Operators also

monitor the ma chine conclitions used for calculating O EE . This

book is intended to sha re basic lea rning tha t will help you partici-

pate effectively as your compa ny applies O E E and begins to

reduce equipment-related losses.

Ch ap ter lays a founda tion with basic definitions related to Total

Productive Ma intena nce and O EE . You

sill

learn why it is

important to track effectiveness rather than effieienc y..~ha pker

introduces the three eleme nts of O E E and their connection to

key types of equipment- rela ted losses-problems and wastes that

reduce a macliine's effeeliveness. Th is is

a

basic framework that

can be adapted to measure and begin to improve equipment

problems in many different industries.

"'Tlie OEE calciila tion and loss framework used in this Look relntes most directly to

discrete parts menufacturers, ratlrer than process industries, wliicii face sliglrtlg diffcr-

en issues, For inore or1 ineaso remco t in process in d~ ~s tr ies,ec Sozuki, cd.,

TFM

n

Process liidrrstries (Productivity, 1994).


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P U B L I S H E R ' S M E S S A G E

Chapter 3 offers a step-by-step ovenliew of the process of doing the

O E E calculatiori. O n e basic aspect is sliopfloor involvernent. It's

important for date to be collected on tlie shop floor and turned

into information for use on the shop floor-not confined to an

of ice or i~ifo rniation epartrnen t. Th is cliapter also dcscrilies how

to define what to measure and how to collect and process OEE

data. It gives examples of different i~ iforn iationdisplays that O E E

data can generate (computer software is helpful for this).

Cliqitcr 4 ktalks ab ou t how to respond to O E E information to fix

the problems. It introduces thc

5

Why nietlioil, autoriomous niain-

tenance, focused equ ipm ent iniprovement, quick changeover, niis-

take-proofing, and 1'-h4 analysis. Cha pte r

5

lielps you review your

learn ing and suggests :additional resources for exploring key topics.

It is imiioriant to remember as you read that this material is a

general oricniation to

a

coniplex topic. Application and master).

of overall equ ipm ent effecliseness often requires a deeper under-

stancling of the production nie ch an istn lie process of tising

OEE is best supporfcd by experienced consultants and trainers

who can help you tailor

it

to your company's specific situation

and address issues that may come up.

Th is book incorporates a num ber of features that will lielp you

get the niost from

it

Each cliapter begins with an o v en k w of tlie

contents. T li e book uses many illustrations to share inform. t' on

and examples in

a

visual way. Icon sy~iibolsn the margin flag key

points to reniember in each section. And Take Five questions

built into the text provide a framework for applying wliat you've

learned to your own situation.

O n e of th e niost effective ways to use this book is to read and clis-

cuss it n it h other eniployccs in group learning sessions. We have

deliberately planned the book so that

i t

can be used this way, with

chunks of information that can be covered in a series of short ses-

sions. Each chapter includes reflection questions to stimulate

group discussion.

Somc tmditior~alippro clies to OLL use I two-par t forn~~~l;ior caleii lati~ ig erfor-

mance thnt uses cycle time

;IS

an elenient. Altlxn1g11 he two-part for111111a ields

infor i~~ationlmt III~IJ.be ii l lor a d r a ~ ~ c c~mlysis,most teaiirs just starting out wit11

OEE d o not n eed that level o f detai l. For llmt reason, this bonk follows n sirr~p lcr

;~ppm;tc h, ~ s e r ly Arno Koch of illom Co~~s~tlt:irrcyn his O 7bolkit sof tu re ,

w l~ ic h oillpares aetlrd outp ut to the potcl~ti;dotllpilt if tile

I I I ?

m e were

performing at its top speed.


13/92

P U B L I S H E R S M E S S A G E

Th is book is especially lielpful when used with the O E E Toolkit

sofhvare packagc (Productivity, 19993, \vliicli was developed by

Arno Kocli of Bloni Consultancy to meet liis clients

need

for a

simple and flexible approach to O E E tracking. Tl ie O E E Toolkit

is an easy-to-use application for capturing O E E data a nd creating

a

wide range of reports from it. Tlie nianrial that comes with tlie

software teaches a people-centered approach to O E E measure-

m ent and reporting

lie overall eq tiipinen t effectiveness measure is simple an d uni-

versal. It is used to measure and i~iiprove quipm ent conditions

in companies all over tlie world. We hope this book will tell you

wliat you need to know to rnake your participation and use of

OEE active and personally rewarding.

cknowledgments

T h e development of O E E for Operators has been a team effort,

and we greatly app rec iate tlie eoritribution of everyone involved.

The book was motivated by tlie approach to OEE developed by

Arno Kocli of Blo~riCo nsu lta~ icv nd further s~ipportecl y

Itis

O E E 7bolkit so ft w re package. co n te n t aclvisors included Jolin

Jac into of Am tes an d Bob Strout of Lemforder C o. , as well as

Productivity consu ltant Jolin Mon aco a nd

?PA4

Report editor in

chief Barry Sliulak.

Lorraine h4illard of Productivity managed tlie prepress produc-

tion and nianu facturing , with editorial ;~ssistance rom Pa uline

Sullivan. Graphic illustrations were created by Guy Roster

and Lee Sm ith , with cartoon illuslrations by G uy 130ster ;ind

I-lannali Uonner. Cover composition was by Mark Weinstein

of

Produciivity, wit11 cover ill~~slrationy Gary Ragaglia of

Tlie Vision Group. Page composition was done by

William

1 1.

Brunson Typography Services.


14/92

P U B L I S H E R S

M E S S A G E

Finally the Product iv ih staff wishes to acknowledge the good

work of the many people who are in the process of implement-

ing Total Productive Mainte nanc e a nd using

OEE

in their own

organizations.

We

welco me your feedback abo ut this book as

well as input about

1 1 ~

e can continue to serve your iruprove-

ment efforts.

Steven

tt

resident

Karen Jone s

roductivity

evelopnzent

Team

x v


15/92

The Purpose of This ook

O E E for Operators was written to give you the infonrlution you need

K e y Po n

fo participate in using the overall equipment ef ec ti~ wms OEE)

measure in your workplace. You are a valued m em be r of your com-

p a y s team; your kno\vleclge, support, ancl participation are essen-

tial to the success of any major effort

in

your organization.

T h e paragraph you have just read explains the author s purpose

in writing this book. It also explains why your company may wish

you to read tliis book. But why are you reading this book? This

question

is

evcn more important. What you get out of this book

largely depends o n your purpose in reading it.

You may be reading this book because your team leader or man-

ager asked you to do so. O r you may be reading

l

because you

think it will provide information that will help you in your work.

By the time you finish Ch ap te r 1, you will have a better idea O

how the information in this book can help you ancl your compa-

ny measure equipment-related losses and plan how to improve

equip ment effectiveness.

I L X G R O Y U

W hat This ook Is ased

On

This book is about an approach for measuring equipment-related

losses that limit th e effecti\~eness f manufacturing equipm ent.

Many of the ~netliods iscussed here were originally developed

at conipanies working with the Japan Institute of Plant

Maintenance, a pioneer

in

the ap p r o d i known as Total

Productive M sintenan ce, or

I PM.

Since 1988, Productivity, Inc.

has nladc information about

T P M

approaclies available in the

United States through publications, events, training, and consult-

ing. Today, top conlpanies around the world are implementing

TPA4 to stistain their competitive edge.


16/92

G E T T I N G ST R T E D

igure

1 1.wo

Ways to

Use

This Book

O E E for Operators clraws on a wide variety of Productivity's book

and training resources. Its aim is to present the main co nc c p~ s

and techniques of I IJPI and overall e qu ipm en t effectiveness in

a

sim ple, illustrated form at that is easy to read an d understancl.

Thi s book also co~ iiplc rnen tshe O E E ofkit sofhvare package as

a way to build a shared ~tnclerstanding mong workteam mcmbcrs

before they begin using O E E .

Two

Ways to

se This Book

T h e re are at least hvo ways to use this book:

I.

s

the reading inaterial for a learning group or stttdy group process

wit in

your company.

2. For learning on your own.

Your cornpany may want to hold a series of learning group discus-

sions based on this book. Managers may assign the book for back-

grou nd reacling wh en the co m pany uses the O E E Toolkit sofhvare

package. O r, you m ay read this book for inclividual lea rnin g with-

ou t forn3al gro up discussion.


17/92

G E T T I N G S T R T E D

How to Get the M ost Out of Your Reading

Becoming Familiar with This Book as a Whole

T h e r e a r e

a

few steps you ca n follow to m ake it easier to absorb

h e nformat ion in th is book. Take as mu ch t ime as you need to

be co m e familiar with the material . First, ge t a big picture view

of the book by do ing th e following:

I. Scan the Contents (pages

v

tlirottgli 141) to see liow

OEE

[or

Operators is arranged.

nil 0 S I P P

2.

Read the rcst of this section for an oven,iew of the book's con tents.

3 Flip through the book to get a feel for it style, flow, an d design.

Notice liow the cliaptcrs are structured and glance at the pictures.

Becoming Familiar with Each Chapter

After you l ~ w e sense of th e s t ructure of OEE for O perc ~tors , re-

pare yourself to s tudy o n e chapte r a t a t ime. For ea ch c hapter , we

suggest you foiiow these s teps to ge t h e mosl o ut oFyour reading:

Read the Cllapter Otervieic on tlie first page to see where the

chapter is going.

n w

t o s t p s

2.

Ylip through the cha pte r, looking at the way it is laid ou t. Notice tlie

bold headings and the key points flagged in the margins.

3.

Now read tlie chapter. How long this takes depends on nhat you

already know about the content, and what you are trying to get out of

your reading. Enhance your reading by doing tlie follotvitrg:

Use the niargin assis15 lo help you follow tile flow of inforrnation

If the book s your own , use

a

liighligltter to mark key inforrnation

and answers to your questions about the material. If the book is not

yoiir own, take notes on

a

separate piece of paper.

Ansner the ' M e Five questions in the text. These will lielp

you absorb tlie in fo r~ n at io ~ ~y reflecting on how you migltt apply

it at work.

4.

Read tlie Chapter Surnmar). to confirm what you have learned.

I f

you don't remember some thing

in

ih e suliimary, find that section in

the chapter and review it.

5 l'inally, read tlie Rcflcctior~s qwstio ns at the end of tile cl~apt er .

Think about tliese questions and write down your ansum. I+id

an

expcricnced person to ask if you find

a

topic conft~sirtg.


18/92

G E T T I N G S T A R T E D

igure 1.2.Giving

Your Brain a

Framework

for

Learning

ow a Reading Strategy Works

\Vhen rcadine a book.

aeonle tliink tliev siiould start with

.

tlie first word and read straight tlirougli until tlie end. niis is not

usually tlie best way to learn from a book. l lie steps de~ cr ib cr l n

page

s v

are a strategy for making your reading easier, more fun,

and more effective.

Reading strategy is based on two simple points about the way

people learn. The first point is thk: It is difficult for your bruin to

absorb rlew infonilcrtio~l f it does not h a ~ v str~ictureo place it

in. A an analog);, imagine trying to build a house \vitlioul first

putting up a framework.

Like Bnilding

a

frame for

a

liouse, you can give your brain a

framework for the new inforru;~tion n tlie book by getting an

overview of the contents and then flipping tlirough the materials.

Withi11 e:~clich;ipter, you repeat this process on a sniallcr scale

by reading the overview, key points, and headings before reading

the test.

The se co ~i tl oint abo ut learning is this. It is

I

lot easier to lean1 if

you take in the infonncition one layer a t a time, instead of frying t

ubsorh it a l l at once . It s like finishing the nails of liouse: First

you lay do\vii a coat of primer. \\ lien it s dry, you apply a coat of

paint, and later final finish coat.


19/92

G T T I N G S T A R T E D

Using

th

Margin Assists

s

you ve notice d

by

now, this book uses sma ll images callecl mar

girt assists to help you follow the iriforniation in each chapter.

?

her e a re six types of margin assists:

Background

Information

Sets the stage for what comes nest

Key Term

Defines important words

Key Point

I-liglllights irnporiant ideas to remember

Example

W p s you understand the key points

New Tool

Helps you record data or apply

learning

How to St ep s

Indicates the sequence for

improvement action

Overview of the Contents

Getting Started pages xv-xx)

Th is is the section you re reading now. It es pl ai ~i she purpose of

OEE

for

Operators an d how it was w ritten. T h e n it shares tips for

getting th e mo st ou t of your rea ding. Finally, it presents this

overview of eac h cha pter.


20/92

G E T T I N G ST RTED

Chapter 1 About TPM and OEE pages 1-8)

Cha pt er 1 introduces and defines Total I roductite i\ilaintenance

and overall equipme n1 effecti\seness. It explains reasons ivhv O E E

is an important measure to track and describes the role of the

shopfloor teani in collecting and using OEE clata.

Chapter 2 . Understanding Equipment-Related Losses

pages 9-23)

Ch apt er describcs the three eleme nts of O E E and links them to

the main types of losses that lower equipment effectiveness.

Chapter 3. Measuring OEE pages 25 -38 )

Chapter

3

offers guidance in measuring overall equipnient effec-

tiveness, incl~rding

ollecting

and processing data arid using the

resulting information on t he shop floor. It tells abou t defining

what data to lucasure for the O E E calculation, doing the calcula-

tion, and storing the data so you can report the information in

cliffcrent ways.

Chapter

4

Improving OEE pages 39-56)

Chapter 4 covers essential approaches for improving overall

eq uipm en t effectiveness. Topics inc lud e Why analysis, the

a u t o ~ ~ o ~ n o u saintenance and focused im provement pillars of

TPR4

specific approac lies for setup and defect losses, and the

advanced P-M analysis approach for chronic problems.

Chapter 5 Reflections and Conclusions pages 57-63)

Chapter

5

presents reflections on and c oncl~ ision so this book.

It also describes opportunities and specific resources for further

learning about O E E , TPh.1, atid related tecliniq~ies.


21/92


22/92

I

C H P T E R

What

s

TPM

Overall ecjuipment effectiveness (O EE) is a key measurement in

the i n~ prov em en t pproach called Total Productive biaintenance

(TP M). Before you begin learning abou t OE E , it is useful to

understand a little bit about TP M .

TPM is a companywide approach for improving the effectiveness

e y o i n t

arzd longevity of machines. It is key to lean manufactitring because

it attacks niaior wastes in operations. Developed origi-

nally to hc lp a supplier m eet the stringent recjuirements of the

Toyota Production System, T P M is used today in companies

around the world to improve the capability of their equipment.

TPhiJ

has number of waste-reduction goals, including equipment

restoration and muintencrnce of standurd operating conditions. TPM

methods also improse equipment systerns, operating procedures, und

nzainterzance and design processes to asoid f it ur e problems.

T h e main strategies used in T P M are often referred to as pillars

that support the smooth opera tion of the plant. F igure 1-1 sum-

marizes the activities in eight basic pillars of TPM.

T h e overall eq uip ment cffectiveness measure is important to

many of the TP M pillars, but is probably most important to tlie

first four pillars in the figure. This is because these pillars can

directly influence O E E througli daily operations, ma intenance,

or improvenient activities.


23/92

A B O U T T P M A N D

O E E

h t o n o r n o ~ ~ s

maintenance

Qu;tlity ma intena nce

Figure 1 1.

asic illars of TPM

ctivities

Operator in vol\w ~re nt n regular

cleaning, inspeclion, lulxication,

an d learning about equip me nt to

mainlain basic conditions and spot

early signs of trouble.

Aclitities to m anage pro duct

qud itl; by nraintaining optirnal

operating cortditions.

h l e th o t l~o h r t e n the lead Lime

for getting n e n cquipmenl o ~ ll in c

and making tlcfect-frec l rotlucts.

Safe 9 training; integration of

sa fey checks, visual controls,

and mistake-proofing devices

in daily work.

planned program for cleveloping

crnployce skills and kno\\*ledge o

srtpport TPh4 in rpl en ~e nlt on.


24/92

C H A P T E R

..

. ...

:

K e y

T e r m

T e r m s

K e y

Po i n r

What Is

OEE

and Why Is

t

Important

Mm ufacturing companies are in business to make money, an d

they make m oney by add ing value to materials to mak e products

the customers want.

Most companies use rnacliines to acid valtic to tile prodrtcts.

To add value effectively, it is important to rtm the machines

effectively, with as little waste as possible. O ~ ~ e r a l lquipment

effectiveltess is a nreasurerr~ent sed in TP to indicate Itow effec-

tively ~na clt ine s re running.

W ha t do we m ean by overall equ ipm enl effecti~~encss?lilany

people are familiar witli the idea of efficiency, tvliich ~ ~ s u a l l y

reflects the cjuantity of parts

a

inachine or a person can p rod ~i ce

in a cerlain time. OEIS is rlifferent from efficiency in several ways.

Quantity Over ime Is Only Part of OEE

mac hine's overall effectiveness inclucles mo re than h e quantity

of parts i t can prod uce in a shift. W he n Jve m easure overall equip-

m ent effectiveness, we a cc on nt for efficiency as oilc factor:

krfomicriw?:a co~nparison f the actuai outpttl with what llle

inachine should be producing

in

the same time.

In addition to performance, however,

OEE

incl t~des\vo

other factors:

i\,.ailahility: a comparison of the potential operating time and the

time in which the machine is actually making products.

Qualit).: a coinparimn of the number of products made and the

nurnber of protllicts that meet the customer's spccificatioiis.

When you nrultiply perfortnance, a~,cdability, nd qualify, you get

the overall equipment effectiveness, which is expressed us ct percent-

cige. OEE gives a co m ple te pictu re of the machine's health -

riot jusl how fast i t can niake parts, but how ~ u u c hhe potential

ou tpu t was limited d u e to lost availability or poor quality (see

Figure 1-2). In Chapter 2 we will look more closely at these

Lhree elemen ts and lio\v they work together.


25/92

A B O U T

TP

A N D

O E E

Effectiveness F ocu ses on t he Equipment

Not th e Person

Unlike s o ~ n e ses of tlie efficiency measure, O E E monitors the

machin e or process that adds the value, not

tlie

operator s produc-

tivity. tV11er1 we nmisure O E E , we look cit floiv well the equip ment

K ~ o i n t

or process is working.

The Purpose

o

Measurement s Improvement

Measuring O E E is not an approach for criticizing people. It is

strictly about improving the equ ipm ent or process. Used is a17

impartial daily sttapshot of equipment conditions, O E E prornotes

openness

n

inform tion sharing crnd c~ no-hlarne cipproach in licin-

dlirzg eqni/1rner7t-reluted issues.

Th ese key differences Iiighlight tlie importance of O E E as a bal-

anced measure that I~elpsupport improvement and profitability.

T A K E F I V E

Take five m inutes to think about these questions and t o write

down your answers:

Does your company currently measure each machine s efficiency?

Its available running time? Its quality rate?


26/92

C H A P T E R

Rgure

1 3 Collecting Data and Turning

it into

Information

The Role of the Shopfloor Team in Using

O

This hook is written for so u, the sfiofifloor einiiloyee, because vou

h a w a big stake in the lzecrfth o/tlt; production kpip in ent.

operators, you manage the ecluipment that adds value to the procl-

uci. Wh en the ni;tchines break down, run too slowly, or produce

defects, you have to \vork longer ancl harder to rnake t ~ por tlie

problems. 'Tlie pressure these problems creates is a good i~icentive

to measure diem ancl start improving them.

What more, your daily work ivit11 the machines puts you in the best

position to inonitor their probleins. You know how long a ~iiacliine

is shut down for setup, or w l ~ e ~ iinor stoppages get in tlie way of

Iiigh-speed operation, or when you have to run slower to avoid

defects. In many cases, yokt already track the data that will be used

to calculate the overall equ ipm ent effectiveness.

Sharing in/orination on the plant floor through gruphs and discus-

sion is the heort of TPiV (see Figure I-?). '['lie O E E information

isn't rtseful when it is locked away in an office. 'The best approach

for applying O E E gives operators a leading role in ga ther ing daily

data, coriverts the data into useful inforniation, and applies the

information in

the workplace to support improvement.


27/92

A B O U T T P M A N O E E

O ve rd l e qui pm en t cffcctivcncss ( O E E ) is a key mcasurc-

m e n t in h e irnprovcmcnt approach called Total Productive

Main tenance

(TPM).

TPM

is

a

com panyw ide approa ch for improving tlie effectivc-

liess and longevity of niacliincs .

TPM

has

a

nu m be r of waste-reduction goals, inclu din g cquip-

m en t restoration arid main tenan ce of standard ope rating con-

ditions.

TPM

rncl l iods also irnprove equipment systcms,

operating proc cd t~r cs, nd ma intena nce ancl design processes

to avoid f ~ ~ t u r er o b l c ~ m .

Overall cquiprncnt effectiveness is a rne:~surernent used in

TPM

to ilidicate how effectively nia chinc s a re runnin g.

Overall equipment effectiveness is not the same as cfficiency,

wliich usually me an s liow many parts a m ac liin c or a person

can produce in a certain time. O E E is different in se ~ ~ e m la p .

Quuntity o iw tirile is only one port of O EE .

macliine s overall effectiveness inclutlcs more than the

quantity of parts it can protluce in

a

shift. O E E inelucles

efficiency as one factor-perforttiatice-but also hvo o ther

fa ct or s- av ni la bi i and quality. Wlierr you intiltiply perfor-

mance , availability, and qttality, you get the overall cquip-

tnen t effectiveness, wliicli is cxpresscd as a

percentage.

Effcctitmess foctrses on the ecpiprrrent or process, riot

tlie person.

W hen we mcasure OEl:, we pay attention to how well

tlie cq ~~ ipn ien tr process is perfonnirig, not tlic operator s

productivity.

Tile purpose of rneosurement is irrtprovemcnt.

Used as an impartial dally snapshot of tlie cquipmetit, OEE

promotes openness

in

infornialio~i l~ariiig nd a no-blame

approach in handling ccpipment-related isstlcs.


28/92

O E E F O R

O P E R A T O R S

* T h i s book 1s written for you, [lie shop floor em plo ye e,

because you have a big stake

i n

tlie liealtlt of tlie production

equipment.

What s more, your daily work with the macliincs

puts you

in

thc besl position to monitor lheir problems.

Sharing information on the plant floor tlirougli graplis and

discussion is tlie heart of

TPM

R E F L E T I O N S

Now that you have completed this chapter, take five minutes

to think about these questions and to write down your

answers:

What did you learn from reading this chapter that stands

out as particularly useful or interesting?

Do you have any questions about the topics presented in

this chapter? If so, what are they?


29/92


30/92

C H A P T E R

igure

2 1.

deal and Actual ffectiveness

Losses Reduce Overall quipment

ffectiveness

W ha t makes mac hine s less effective than they could be? Tli e

ideal, totally effective machine could run all the time (or when-

ever needed). It could ma inta in its maximum or standard speed

all the time. t \ V O L ~ ever rliake defective products.

But most tiiachincs aren t ideal. Th ey ca nno t run continuously.

The y cann ot maintain maxitnum speed wit ho i~ t roblems. And

they make defects.

Th ese p ro b le m are faniiliar forms of wask-they don t add value

to the products. T he y reducc a machine s effectiveness, as mea-

sured by the O E E . The conditions th at cause these machine prob-

p m

ferns are called equipnlent-related losses. Uilderstandirig the differ-

ent types of equipment-related losses will give you a framework

for applying O E E and participating in improvem ent activities lo

reduce the losses.


31/92

U h D E R S T A l . O I Y G

E Q L I P h l E N T

R E L A T E D

L O S S E S

.

T h e equipment-related losses that are important for O E E are

linked to the three basic elem ents inertsured in O E E : availability,

performance, and quality. Traditional TPM approaches track

XI

T e l n

Six Major Losscs :

hailability Perforrnrince:

Quality:

Dow ntime losses Speed losses Defect losses

1%1

u m

Minor

stoppages Scrap and rework

Selup tinic

Reduced

operaling speed Starlnp loss

Alth o~tgli om e companies link i~icliviclualosses to different O E E

categories, or add otlier losses that are especially significant for

their operations, this basic framework is a t~ se ful tarting point

for many comp anies. Figcue

2 2

on tlie nest page gives a visual

image of tlie

9

in which these losses reduce the overall equip-

me nt effecti\~eness f a ma chine.

T AKE F I V E

Take f ive minutes t o think about this quest ion and to w rite

down your answ er:

What are some of the situa tions that keep your machines from

running at an ideal level of effectiveness?


32/92

C H A P T E R

OEE

=

B A

x

D/C

x

F/E

x

1

~v ailh bil i ty ~erfdrmance Quality

Figure 2 2.

The

OEE Elements and the Equipment-Related Losses

Visualizing OEE and the Losses

Figure 2-2 makes it easy to see itow

OEE is

derivcd from the three

elerrients, expressed

as

fractions. Each pair of bars stands for on e of

the fractioris-availabiliQ (BIA), performa nce

(DIC),

an d cpality

(FIE). The fractions arc often multiplied

y 100

to trrrn them into

percentages or rates.

Availability

Bars

A

a d represent availability. Unsclieduled time shortens

the total

operating

time,* leaving ne t operating time (A). But the

Compan ies eou i i t

l l i i s

t i ~ r i e

ll

different

ways

b u t

for

l l i s

discusniori , we sd,tract t l ~ e re

periods from t l lc t u t d u p c r at i ng l i m e .

2


33/92

U N U E H S T A N D i h G E Q U I P h l E h T - R E L A T E D

LOSS S

~nacl t ines frequently down dur ing som e of that time, usually du e

to breakdo\vns and se tup. Subtracting that downtinie leaves the

running time (B) in which the machine is making product.

l a n p i e

erformance

Bars

C

and D represent perform;tnce. During the running time,

tlie machin e c o~ tl d roduce a target o ui pi t quantity

(C)

if it ran at

its clesig~led peed the whole time . But losses such as minor stop-

pages arid reduced operating speed lower tlic actual outp ut (D).

acluul orrfprrt 15,000 pmtsLTxur~tple:

=

.60 prfinrrurrce

x

100

=

60 )

target otr fpu f 20,000 purls

t n a n o l e

Quality

Bars E and 1 represent quality. Of t x actual output (E), most

of the p roduct is good outpu t (F). But usually some ou tpu t falls

short of the specified quality and must be scrapped or reworked.

Scrap is often produced during machine startup as well, lowering

the yield from the inaterials.

good ou tp ~t t 11,760 parts

Exria~ple: =

. 18

qualify

x

I00 = 98 )

ucl~rrrl utput

12,000

parts

Figure

2-2

shows how losses to availab ilih, perfont~unce, n d

quality corrzpourzd to reduce the amount ofgood output CI n~uchine

H ~

o nt

cun produce during a sh i f t You can improve quality to raise tlie

quantity of good output a little bit-but the total quantity won t

rise draniatically unless you also improve both

performance

and

availability.

The fortnula at tlie bottoni of Figrtre 2 2 shows how lo ~nultiply

the three elements to gct the OE E .

T h e rest of this chapter will look more closely a1 the losses associ-

ated with these elcmcnts.


34/92

e y P o i a t

Key o l n l

C H A P T E R 2

Figure 2 3 Downtime Losses Failures and

Setup

Availability Downtime Losses

ailures

Avuifubility is reduced by equipzrrent fuilures, tvliicli are a com mon

occurrence in many plants. RiIacliines used for prorluction gener-

ally have lots of moving parks and vari o~ts ubsyste~iisn wliicli

hiings ca n go wrong. Il lien they do, the n iacl iine breaks down-

and stays down ~ ~ n t i lepairs are completed.

Many oftl ie causes of ri~uclrine i~ ilu reive wurrting signs before

the rriuclri~~ectuully Irreuks. In Cliapter

4

1ve will look at liow

autonomous maintenance activities can help spot early trouble

signs in time to prevent major breakdowns.

Setup

Time

rh~uilubi lity s also reduced by the time it tulies to set up the

tnuchine for u different product. hi addition to cliarigirig tlic value-

adding parts, a cliangcover requires some preparation or make-

ready.

t

may ~ nvolve leaning and making adjuskmcnts to tile

machine to get stable quality in the nest product. Too oftcn, it

also in~ol ve s unn ing arou nd to find tools, parts, or people. \lJe

will considcr an approach Tor retlucing sct~tpime in Cliapter

4


35/92

Figure 2 4. Downtime Losses Cutting

Tool

Loss nd Startup Loss

Other Losses to Availability

Failures and se tup losses were the original losses counted

as

clow~itime hat recluces availability. Som e cornpanies also track

other losses as dow ntime depe nding

11

d i a t losses they are

trying to improve. Cutting tool loss startup loss and time not

schednled for production are three other losses tracked as down-

time a t some plants.

utting Tool

Loss

K e y P o i n t

Rreukuge of cutting tools during production cuuses unpluz~ned

downtinze while the tool is replaced. Altliougli this is teclinically a

subset of failure ancl repair losscs som e companies track it sepa-

rately because of the potential for injury ancl product defects as

well as the cost of tool replacement. Planned maintenance and

autonoriioi~smainienance activities help reduce these losses.

tartup

Loss

Startup loss is traditionally in c l ~ ~ d e ds a defect loss since its

essenie is the prod~tct ion f defective products during

startup.

I-lowever sturk~poss involves lost time until good pod~rction~cune

K Y p o i n t

stubilized so

t

is logical to st~b tractt From available time as well.

5


36/92

C H A P T E R

Figure 2 5 Downtime Losses Unscheduied Time

Time ot Scheduled for Production

In some con~p anie s,when rnacl1ines are stopped for meetings,

preventive maintenance, or breaks, the time is considered

not schecluled an d is no t coun ted in the availability rate (see

Figure 2-5). Ot he r c o~ np an ie s ecognize that even necessary

activities like tliesc redu ce the available prodnction time. They

may clccide to cons ider time not scheduled as a dow ntime

loss that lowers the availabiliky rate.

Counting tmscheduled time as

I

loss cut1 erzcotrrage creative ideas

e y o i n t

for reducing the loss-without eliminnting the uctivify. For esam -

ple, after measuring the produckion time lost from scheduled

breaks, employees at one company developed a plan to alternate

their breaks and briefly cover each other's stations.


37/92

U N D E R S T A N D I N G

E Q U I P M E N T . R E L A T E 0

L O S S E S

Likewise some companies co un t of f l ine t ime for preveniive

m ain ten an ce as do\vntirrie. Again the p o in t s to rcduce the t i rue

loss n o t to el im ina te the activity.

T K E

F I V E

Take five minutes to th ink about these qu est ions and to w rite

down your answers:

How much time is lost each month due to failures and repairs in

your area?

How much time is spent each month on setup and make.ready in

your area?

Would you count other time losses for OEE purposes? Why or

why not?


38/92

C H A P T E R

Performance Speed Losses

Reduced perating Speed

Mac hines often

nrn

a t speeds slo~ver han they were designed to

nm One reason for slower operation is unstable product quality

at the designed speed. In other cases, people don t realize h a t the

equip men t is designed to run laster. We tvill look in Cliaptcr at

how to determine speed for the OE E ealculalion.

inor Stoppages

Minor stoppages are events tha t interrupt the production flow without

actually making the rnaclrine fail. I ltey often occur oil autoruated

lines, for example witen product components snag on the conveyor

(see Figure 2-6).

Minor stoppages can make it impossible to run autom ated equip-

men t without someo ne to monitor it. Tllese stoppages may seem

like p e t p annoyances, but they add u p to big losses a t many {da nk .


39/92

U N D E R S T A N D I N G E Q U I P M E N T R E L A T E D LOSS S

h h o r stoppages last only a few seconds, so we don t try to log the

time lost. Instead. we in c lt ~ d elieni in r~erformanceosses that

redu ce t he produ ct ou tpu t. We will look at approaches for recluc-

ing speed losses in Chapter 4.

T K E F I V E

Take five minu tes to think about these questions and to write

down your answers:

Do you know the designed speed of the machines in your area?

Do minor stoppages happen in your area? What causes them?


40/92

C H A P T E R

2

igure 2 7. Defect Losses:

Scrap

Rework,

and Startup

Loss

Quality: efect Losses

crap

and

Rework

I'roducts that do not m ee t customer specifications are a familiar

loss. Clearly, scrap that canno t be reused is a waste of m;~terials .

Even w hen pro dt~c ts an be reworked, the effort spent to process

them hvice is a waste.

tartup

Loss

Many machines take time to reach the right operatiltg conditions at

e y

startup. n the n~eatztime, hey

nay

turn out defictive products

while operators test for stab le output. Som e com panies simply

incl ude this sta rtup loss in scrap and rework; others single it out

as a specific loss to track*

r\s nreiiticrncd in th e section or1 do w ~l ir ti eosscs, same co rti pn ier also sir&

out

the

slnrlup period bcforc tlic i r s t good prc~rliict s I special

vp

of do\vntime to h c k .


41/92

U N D E R S T A N D I N G E Q U I P M E N T R E L A T E D L O S S E S

Quality ~x ob le m s appen when the op tin ~u m onditions do

not

exist at the m om ent \d ie n a person or m ac hine works on the

product In Chapter 4 we will look at a meihocl for preventing

defects

by

chec king and controlling the necessary conditions

T K E

F I V E

Take five minute s t o think about these questions and to write

down your answers:

What is the defect rate for machines

n

your area? Do you think

this can be reduced?

Are startup losses a significant problem in your area?


42/92

O E E F O R

O P E R A T O R S

T h e ideal, totally effective mach ine would run all the time (or

n.henever needed), at maximum or standard speed, with no

quality problems. But most machines can't meet tlicse ideal

conditions. They can't run continuo~~slyr at maximum

speed; they experience minor stoppages, an d tlicy m ake clefec-

tive parts.

T l ~e se roblen~seduce a inachine's effectiveness, as nieasured

by the O E E . Tl'lic conditions that cause these probleins are

called eqrtipmerit-related losses. Linked to the three basic ele-

mcnls of OE E , they include the traditional Six Major Losses :

AvailabiIity: 1'crfonn:rnce: Q.;ility:

Downtime losses Spceci losses Defect loss s

Failures

Minor stoppages

Scrap

and

i work

Setup time Reduced operatir~gpeed t;~rtuposs

itlt lio t~ gh ome c ompanies link individual losses to different

O E E categories, or add otlier losses illat are especially signif-

icant for their operations, this basic framework is

a

i~scful

starting point.

O E E is derived from the tliree elements , esprcssccl as fractioris.

'i'l~efractions arc often multiplied by 100 to turn tlicni into per-

centage s or rates. Losses to tl m c tliree elements rcdtice tltc

arriount of good outp ut

a

ma chine can produce during a shift.

Do wntime losses arfcct availability. Eailtires and setup time are

com nion losses tracked.

So~ii e ompanies ;dso track otlier losscs as downtime, depend-

ing on what tlicy arc trying to intprove. Cutting tool l o ~ s ,

startup loss, and time not scheduled for production

are

three

other losses son~ etiniesracked as downtime.

Speed losses affect performance. h h o r stoppages and opera-

tion at reduced spced are often measured as speed losses.


43/92

U N D E R S T A N D I N G

E Q U I P M E N T - R E L A T E D L O S S E S

Defect losses affcct quality. The y inclu de scrap a nd rework whcn

Ions.

roducts do no t me et custome r specific.

I

Also many macllines turn out dclcctive products during

startup while operators test for stable oulpttt. Some conipa.

nics i n c l ~ ~ d ehis loss in scrap and rc\vork; others single i t

ou t as a specific loss to track.

R E F L E T I O N S

Now that you have completed this chapter, take five m inutes


answers:

What did you learn from reading this chapter tha t stands


Do you have any ques tions about the topics presented in



44/92


45/92


46/92

C H A P T E R

A~Icasuring verall equ ipme nt effccti\~enesss an important way

to monitor which losses are reducing the effecti\~eness f your

macliines. By tracking O E E 077 a regular basis, y u car7 spot pat-

o i n t

terns a nd influences tha t cause problenrs for production equipment.

Furthennore, niecrsuring O E E allows you to see the results of your

efforts to help tltc rnaclrines nm better. Th is chapter offers guidance

in measuring overall equ ipm ent effectiveness, including collecting

and processing O E E d a b arid reporting O E E results.

losing the Feedback

Loop

T h e process of measuring and applying O E E data should involve

the people who use the machines.

s

operators, you are more

familiar than otlier people with the equipment you operate, and

you have a slake in help ing it run well. Therefore it's logical for

you to take part in collectirig tlie data for calculating OEIS.

just as irrzportant as being involved in clata collectiotl is receiving

e y

p o i n t

feedback on O E E results. An O f X chart cannot promote improve-

ment if it doesn't get back to the shop floor.

OEE

is living infor-

mation for improving equipm ent effective~iess. t shoulcl not be

buried away in an office.

ollecting OEE Data

efiningWhat to Measure

Before you can begin appl)>ingOEE, you need to decide what

m y p o i o

nrachine and pr od ~ ~c tatu you will rneasure for the calcu fatio t~.

V i e Basic itenis you will measure a re the losses that reduce avail-

ability, perforninncc, an d quality. Tliese will vary from plant to

piant, b ~ ~ the Six h4aior Losses described in Cliapter

2

give a

good framework to start from.

Downtime Losses

Do~vntimeosses (lost ai,c~ilclbility) rre rrwcrsured in units of tirnc

K e y P o o l

(Figure -1). The y include

failure and repair tirnc

setup and adiustmenk timu

other time losses tli;it reduce availabililp


47/92

M E S U R I N G

O E E

:ure

3 1. ailure

and

Setup

Losses re Measured as Time Losses

Failure and repair t ime i n c l ~ ~ d c sll of h e downtime until the

rn:tclhe makes the n st good product. Some plants 1i1mpall

breakdotvns into on e category; oth er plants may create several

categories to disti~tgu ish et\veen different hp cs or causes of

rnachinc failures. T h e main t l h g is to standardize y o w approach

so everyone can measure a failure event the same way.

Setup and ad iustm cnt tifne includes the time between the last

good piece of procluct

A

and the first good piece of procluct

B

Ot he r time losses inc lud e startup losses-similar to setup time

losses-and any no ns cl ted ~~ le dime the team chooses to subtract

from the available time.

T K E

F I V E

Take five minutes t o think a bout th es e que stions and to write

down your answers:

What types of information about your machine s operation do you

currently track?

What types of downtime losses do you think your work area

would track for

OEE?


48/92

C H A P T E R

THE DES IGN GUY

SAID THIS WOULD RUN

1 000

PIECES PE R MINUTE.

BUT WE CAN ONLY RUN 827

M A T T E R W H A T

Output Reductions

peed

osses

Speed losses (lost perfonncince) are rneclsured in units of product

e y p o i n

outpu t (see Figure

3-2).

You probably already track your ou tp t~ t

quantity. For

OEE,

you look at the difference behveen the actua l

ou tput and the potential output if the riiacliine consistently ran

at the designed speed, or at the standard o pt i~ nu nt peed for

each procl~tct.

Speed losses inc lud e m ino r stoppages as well as reclucecl operat-

ing speccl. A lt li o~ ~g hinor stopp ges are events like mini-

breakdowns, they often occur so frecluently that

t

is not practical

to record the tin& lost during many frequent stoppages. For that

reason, many companies monitor minor stoppages by tracking

the outpu t reduction they cause.

lb

comficlre the ac tua l outbut rate (rnuchine s ~ ~ e e d )ill1 the ou tbut

rate a t ;he designed spee d,'pu have to know & z t he designed&zx

is.

If tl~is peed docs not appear in tiic macltine's docurnentakion,

you will nked to sel

:I

s tar i~ard,uch as the fastest known speed at

wltich the machine can run (tliis may vary for different products).


49/92

M E S U R I N G O E E

ercent

Defect

Rate

Line

Figure

33 Scrap

and Star tup Losses re Measured a s Defective Output Compared

to Total Output

Defect Losses

Defect losses (lost quality) are ulso measured in units of product

K e y

v o n t

output. This time, you are looking at the difference behveen the

total a ct~ tal utput and the output that meets ccustomer specifica-

tions ( sce Figure 3-3).

Defect losses include products that can be reworked as well as

outr ight scrap. i7irst-pass qualih is the goal.

Making Data Collection Simple

T h e purpose of tracking

OEE

is not to rliakc estra paperwork for

operators. Most likely yo11 arc alreztdy collecti~igI lot

of

the data

req~~ireclor the O E E c alcu lation. O ne ivell-clesigiled fonn un

nlake it easy to log th O E E da ta a s i ~ ~ e l ls other dutct you need

to register clurir~g aily production.


50/92

C H P T E R

Figure

3-4

pages 31-32) shotvs a sam ple data collection form. Its

creators used a simple approach for logging time losses by sliading

l a m p i s

the boxes on Side A to indicate where downtinie occurred .

Performance a nd quality data go on Side B.

T K E F I V E

Take five m inutes to think about these qu estions and to write

down your answers

Which type of loss most affects your production equipment?

How would you change your current data co llection forms t o

include

OEE

data?


51/92

M E A S U R I N G O

Lure 3 4 Sampie Data Collection Sheet Side A

Source

A m

ach Blom

Consultancy. User s Guide for OEE

Toolh~t oftware IPmductivity,

999

3


52/92

C H A P T E R

:we 3-4continued). Sample Data Collection Sheet Side 6

SOUICB: Arna Koch.

lom

Consultuncy.

User s

uide

lot

OEE

rootkit

software Productivity,

1999


53/92

M E A S U R I N G O E E

Running time ctual output

Good output

Net operating time Target output ctual outp ut

igure 55

The

OEE Calculation

and

Its

Elements

Processing

OEE

ata

Afier you collect data for OE E , you need to process tlic data to

turn it into useful information. Th is involves doing the c alcula -

tion, and also storing your data in a way that allows you to clraw

different types of idomtation from it.

The OEE alculation

O E E is calct~ latecl y multiplying availability, perforniance, and

qud ity (~nultipliecl y

100

to give a percentage rate).

OEE

rote i\wifubil ity Perfarntanoe x Quulity x

1

Po nt

Let s review the equations for tlte individual elcrnents of O E E .

Kunnirrg tirile

A~~ui luhi l ih

Net ctperutirrg tirne

The running time is the net operating tirne minus the downtime

losses you rlccide to measure.

Actual output

Perforn~c~rtce

Torget ozrtput

For the O E E calculation, the target output is the quantity the

machine woulcl produce if it operated at its designed speed

during the running time (see Figure 3-5 .

Qt~ ati ty Good output

Actuul output


54/92

C H P T E R

Storing O ata

O E E is mos1 valuable when p o ~ ~ollect data and do the calcula-

Lion o n a regular basis. Tracking O E E at set intervals over time

allows you to see patterns that give ciues for in~ pro ve me nt.

t

is irnport t~to

h ve

system in pluce to store your O E E data.

ri l P a ~ n t

Ma nua l cha rting of the basic rates is a good place to start, bu t it

limits the information you can pull out of the data. Sofhvare can

be a helpftd tool for automating the calculation and storing the

data for use in scvcral t ~ ~ p e sfgrap l~ssee Figure

3-6).

T K E F I V E

Take five minutes to think ab out this question and t o write

down your answer:

What kind of data storage system would you want to use for your

O measurements?


55/92

M E A S U R I N G O E E

Source

Sample data entered

in

OEE

i olkit

software application

Am0

Koch

Blom

Consullancy:

PIoducthify

19991

Reporting

OEE

Results

Sha ring O E E information is critical for reducing equipm ent-

related losses. Operators-the peo ple wh o are closest to the

ccp ipm ent-n eed to be aware of

OEE

results. liep orting OEE

information on cl ia r t ~n the \vorkplace is a key to improving

futu re results.

T h e graph in Figure

3 6

s h o w

a

typical machine s O E E char t for

one sliift. By tracking this data over time, vou can see tlie OEE

trends for th e m ac hine , as show n in F igur;

3 7.

The few pieces of da ta you collect to track OEE con give a lot of

other

inform tion

ab ou t the inuchine, unswering sttch questions a s

Arc we improving over

How arc we utilizing tlie

time? equipment?

What are the biggest down-

What

is

our mean time

time problem s? behveen failures, failure

When did an incident

rate arid frequency, and

occur? mean time

to

repair?

1-low was quality over the

last month?

Figures

3-8

and

3-9

show samp le reports from O E E data.


56/92

C H A P T E R

Source: Sample data entered in

OEE Toolhi

software appilcation

( A m

Koch. Blom Consultancy;

Pioducfivity 1999 .

Figure

3 9. tilization Chart

SOUICBample data entered in

OEE Toomil

software application

A m

Kocll. Blom Coosultancy;

Pmd~ctivity.1999 .


57/92

M E A S U R I N G O

Tracking O E E helps you spot patterns and influences of equip-

ment problenis 2nd allows you to see thc results of your

iniprovcment efforts.

Tlic process of measuring and applying OEE data should

involve tlie people who use tlie

machines. Operators

should

also receive feedback on OEE results.

Before you bcgin applying O E E , you n eed to decide what lo

measure

for tlie calculation. T h e basic i t e m you will measure

are the losses that reduce availability, perform ance, and qual-

ity. Tbcse will vary from plant to plant, but tlie Six Major

Losses provide

a

good starting Franietvork.

Do wn tim e losses lost availability) are measured in units of

time. They includc

hilurc and repair time

setup and adjustment time

other time losses that reduce availability

Speed losses lost performance) are measured in units of prod-

uct output.

You

will look at the difference behvcen the achial

output and the potential output if tlie machine consistently

mn at the designed spced or the st;~nclardoptimu m speed for

each product.

Defect losses lost quality) arc also nieatu red in units of prod-

uct o utput. H ere you itre looking at Llic difference betwecn h e

total actual outp ut and thc ou tput that meets cusiomcr spcci-

ficat~ons.

The purpose of tracking OEE is not to 1ii;lke extra

A

\vcll-designed form can make it easy to log the OEE data as

wcll as other da ta you rieed to register durin g daily production.

A f t e r you collect data for O E E , you need to process the data

to turn it into useful information. This involves cloing the cal-

culatio n, and also storing your data in a way that allows you to

draw diffcrcnt types of information from it.


58/92

O E E F O R O P E R A T O R S

O E E is calcu lated by n~u ltiply ing vailability, performance,

and quality tnuitiplied by

100

to gct a percentage rate).

OEE

rate rivuilability

x

Perfonnunce

x

Ql~ul i l y

x 1

Running tirile

ri~~uilubil i ty

Net operrrtitig tirne

Actual output

Perforn~ance

Target oufptrl

Good unlptrt

Q ~ r a l i h

Actual oritplrt

Tracking

OEE

at set intervals over time allows you to scc pat-

terns that give clues

for

improvement.

t is important to have

a

system in place to store your OEE

data. Software can be helpful for autorriating the calculation

and storing the data for use in reports.

Reporting the results on charts in the workplace is a key to

improving fu t~ ir c esults. T h e few pieces of data you collect

to track O E E can give a lot of other information a bou t the

machine.

R E F L E T I O N S

Now that you have completed this chapter, take five minutes


answers:

What did you learn from reading th is chapter tha t s tands


Do you have any questions about the topics presented in



59/92


60/92

I

C H A P T E R

igure

41

OEE

Tells

the

Current

State of the Equipment

W

measure O E E to ~i lonitorhe condition of the cquipment-

similar to what a nurse learns about your condition w hen he or

sh e takes a tempera ture or listens io a heartbeat (see Figt~re -1 .

.

By comparing yesterday s or last \vee rs result, we can see whether

tlie condition has improved or becom e worse. s an operator, you

play an important role in

TPM

because you are in the best posi-

tion to monitor mac hine conditions during operation.

e y P o i n t

? fie i~ oi nt f usirlg the O E E meusure is to drive irnprovenient.

W hen you first begin tracking O E E , the rate mag be very low.

This is no1 totally bad, because t means there is a big opp ortu nih

to improve. It is much easier to improve a low OEE rate than a

high one, since people tend to

eliminate

the obvious wastes and

problems at tlie beginning.

Standardization is the first step in improvement. 0 E E is a tool for

standardizing the

way

you measure

effectiveness.

Th is standard-

ized approach provides a baseline that helps you see where to

focus improverneiit efforts.

So me im provem ent mag hap pen just from the awareness that

develops when you start mcasuring

OEE.

Sustuined improve-

tnent, however, requires a dediccited approach, with rrlunugerrtent

support. Thi s cliapter explores several approaches that can hel p

improve OE E.


61/92

i M P R O V l N G O E E

nswer

2. Why did oil leak?- p T h e O-ring was cut.

igure

4 2 5

Why

Analysis

Why

nalysis

I-Iave you ever liad the esperience in \vl1ich someone fixed a machine

problem, but the same problem happened again after a sliort time? In

such cases. it often h ~rns ut that people have been heating the syin p

s

toms of the problem, but not dealing \\it11 its real, root cause.

ti

we address the root cause, the same problem will keep returning.

5 Why analysis is

a

useful tool that brings us closer to tlie root

cause. s its nam e suggests, 5

hy

analysis involves repeatedly ask-

ing ~vhy? bout the problein (it could he m ore or less than five

times, depending on the situ;ition). Th is leads us to look beyond

the inirnediate effect-sucti as a broken drive belt- to see the

factors that might be causing tlie effect-st~cli as flaws on tlie

pulley that make the belt wear out too soon.

Figure

4-2

shows an esarnple of using Why analysis.

T K E F I V E

Take five minutes to think about th es e questions and t o write

down your answers:

Is

there a typical situation in your workplace where people

fix

the symptoms ? What do you think

is

the root cause, and what

would you do about it?


62/92

C H P T E R

4

utonomous Maintenance

Autor~ornous nairtiertunce refers to activities curried ou t by

,~ . ~. ....

e y T e r m

s/iopfkor terns in cooperation with muintenatlce staff to help stu-

b i k e basic equipment conditions an d s l~ ot roblents early.

Autonomous ma intenance is on e of the pillars of

TI M

It

changes the old view that operators just run mach ines and main-

tenance people just ix them . O perators liave valuable knowledge

and skill that can help keep equipment from breaking down.

In autonomous maintenance, operators learn how to clean the

equipment they use every clay, and how to inspect for trouble

signs as they clean (see Figure 4-3). The y may also learn basic

lubrication routines, or at least how to check for adequate lubrica-

tion. ? hey learn simple niethods to reduce contamination and

keep the ecjuipmcnt cleaner. Ultimately, they learn more ab out

the various operating systems of the equ ipnlent and may assist

technicians with repairs.

Auiotlo~nousmaintenance activities arc like exercise and regular

K Y

P ~ I ~

I~eu lth heckups for machines. Along with preventivc mainte-

nance, they help raise O E E by lilaititaining proper operating con-

ditions, and stabilize it by detecting abnormalities before they

turn into losses.


63/92

I M P R O V I N G O E E

Step1 Conduct initial cleaning and inspection.

Step 2 Eliminate sources o f contamination and inaccessible

areas.

Step 3

Develop and test provisional cleaning, inspection,

and lubrication standards.

Step 4

Conduct general inspection training and develop

inspection procedures.

Step

5 Conduct general inspec tions autonomously.

Step 6

Apply standardization and visual management

throughout the workplace.

Step

7

Conduct ongoing autonomous maintenance and

advanced improvement activities.

Figure

4 4. utonomous

Maintenance

ctivities

Autonomous m aintenance

is

at its heart. a team-based ac ti vi k.

Th rough the steps ofautonornous main tenance, shopfloor emp loy-

?

ees work w it h m aintena nce technicians a nd engineers ton clrd a

cotnnzort goal-more effective equipm ent (see F ig ure

4-4 .

3y shar-

in

what they know, they can catch man y o f the problems that

cause failures, defects, or accidents.

T K E

F I V E

Take five minutes t o think about these questions and to write

down your answers:

Who performs basic cleaning and maintenance on the equipment

in your work area?

Do you think autonomous maintenance activities would reduce

equipment problems in your company? Why or why not?


64/92

e y ern

K e y P o i n t

C H A P T E R

Figure4 5

a).

Stabilizing with Autonomous Maintenance

Focused quipment and Process

Improvement

Focused equipment clnd process ilnproventent is the ? l h/I pillur

tliat deals most directly with irr~proving quipment-related losses. f

autonomous maintenance and preventive maintenance activities

are like esereise and health checkups, focused improvcnient is

like an intcnse workout tailored to develop strength in specific

m ~ ~ s c l eroups. Au tono mo ~~saintenance a ~ i d lanned maintc-

nanc e inlprove O E E Lo a certain level, then help niaintain basic

operating conditions to stabilize O E E . To raise O E E beyond this

stabilized level, companies apply focirsed improvemen t (see tlie

left and right sides of Figure

4-5 .

In corttrcrst to the onrroine activities of autonomous maintenance

a n d planned maintenance, foc~lsed mproventent involses targeted

~rojec tso reduce specific losses. The se projects a re usuallv carried

out by cross-functional teams that include people with various

skills or resources an

improvement

plan might require.

Depend ing on the target, a focused i~ np rov em en team may

include ma intena nce technicians, engineers, equ ipment clesign-

ers, operators, s up cn ko rs, a nd managers.


65/92

I M P R O V I N G

O E E

It's u good icleu for companies to at tuin a basic fit~~essevel with

K e y

P o n

U U ~ O ~ I ~ I U O U Sn u i n t e ~ ~ u n c eind pkunned tnain tenance before

launching focused intprovenlertt projects to address specific weak-

nesses. One reason is to eliminate routine problems (sporadic

losses) so yo11 liave a clear view of clifficult or more significant

pro ble ~i is chro nic losses). Another reason

is

to avoid w in g a

more expensive and time-consuming f o c ~ ~ s e dmprovement

approach for problems that could be addressed tlirough less

expensive autononious ma intenance or planned maintenance.

Focused improvement teams use a range of approaches to cut

eq uip men t-r ela te losses. The y may use Why analysis as a start-

ing point, bu t there are also approaclies that addrcss specific

types of losses, such as setup losses and scrap. We will review

approaches that deal directly with shortening cliartgeover time

arid reducing losses froni product defects. Finally,

we

will look

at P-bl analysis, an advanced version of root cause analysis that

is used in focused improvement and quality maintenance.


66/92

I

C H A P T E R

Before SM O

Internaland

Convert internal

Streamline

external

setup internal

and

all

aspects of

setup

Figure 45

he

hree Stages of SMED

uick

hangeover

Setu p and adju stm ent time is an iniproveiiient target for OEE,

since it reduce s tlic time in which the m ac hi ne is available to

make products. Sliigeo Sliingo, who helped develop key aspects

O the Toyota Production System, invented a changeover irnprove-

m en t system called single-minute cscliange of die, or

SMED.

Th is system gives a t hre est ag e approacli for shorten ing setup

(see Figure 4-6).

Stage :Separate Internal and External Setup

In developing S h E D , Sliingo analyzed changeover operations to

detertiline why they took so long . He recognized that change over

activities co~tlcl e divided inlo two types:

ftltcmrtl setup: setup operations that can be done only with the

cqt~ipn ient topped

Externul setup: setup operations that can be done while the

iiiacliine is working.

The problem a t most contpanies is that internal

~nd

xternal setup

operations ure rnisecl together. T h is m ean s that things tha t could

be d on e while the m achin e is running are not don e until the

machine is stopped.

Nirned lor ih goal of cnri~pletir~gl~ai~getrver itli i~ ~I single-digit ilwilber

o

niio-

utcs-9 iiii~~tilcrr lciver.

6


67/92

I M P R O V I N G

O

Sta ge of Shingo s SMED s y s t e m i r l ~ ~ o i ~ e sorting ou t the external

setup oparations so they ca n be done before the ii tacl ~ines stopped.

This a lone can reduce se tu f~ime bv

30

to

50

/~erceitt . ypical

stage 1 activities in clu de

liansporting tools and parts to the macliine in advance

Confirming that escl~a~lgeablearts are functional before the

cl~angeover egins

Stage : Convert Internal Setup to External Setup

T h e nex t s t ep in the SkIED system is to look ag ain a t activities

clone with th e mn ch ine stopped ancl find ways to do t he m while

t h e n i a c h i ~ t cs still active. Typical stage

2

improve ments incl i lde

Preparing operating contliiions in adranee, sttch as heating

a

die

mold with a preheater instead of using trial shots of hot material

Standardizing functions sue11 as die height to elinhate tile need

for adjustments

Using devices tlmt autonmticallp position the parts witliout

I I ~ G I -

suremcn t

Stage 3: Streamline ll Aspects of Setup

Th is s tage at tacks rem ainin g setup t ime, an d includcs these

approac hes to shorteii internal setup:

Using parallcl operations (two or more people working together)

Using quick-release cl;t~nps nstcad of nuts and bolls

Using

numerical

settings to

eliminate

trial-and-error adjustm ents

T K E F IVE

Take fiv minutes to th ink about th es e qu es t ions and t o write

down your answers :

How long does a typical changeover take in your work area?

Can you list the changeover st ep s that couid be performed while

the machine s still running?

Who would you want t o have on a se tu p improvement team,

and why?


68/92

B I

e r m

~ yo i n t

I

C H A P T E R

4

Source inspection

1 percent inspection

Prompt feedback and action

Poka-yoke systems

igure 4-7. The ZQC System

ZQ Mistake-Proofing)

T h e quality rate is a n eleme nt of OEE. W hen the equipm ent that

sliould add value to a product makes

a

defect instead, it wastes

valuable materials an d energy-and it can Iittrt tlie company's

reputation i tile defective it em reaches a customer. Therefore,

quality is an important cle me nt of a machine's effectiveness.

Many companies think that they are addressing qualiky issues

through inspection that catches defects before they leave the fac-

tory. However, inspection after {~rocessingloes not elimincrte

defects, a r ~ doesn't necessc~rify atch tflern al l, either. Quali ty can-

not be inspected in. It t i i ~ s t e Built into the process.

Shigeo Shing o carefully analyzed the causes of defects in manu-

fa ch ~r in g lants an d found that random errors were often the

most difficult causes to control. To prevent h e s e errors, he devel-

oped a mistake-proofing system known as Zero Quality Control

(Z Q C , or quality control for zero defects ).

Z Q C prevents defects by ccltching errors cmd other nonstanclctrd

conditions before they actuc~lly

t m

info defects. It ensures zero

defects by inspecting for proper processing conditions, for

100

percent of the work, ideally jt~ st efore an operation is performed.

If an error is discovered, the process shuts down and gives itmne-

diate feedback with lights, warning sounds, and so on. TIie basic

elements of a Z Q C system are summarizecl in Figure 4 5.


69/92

I M P R O V I N

O E E

correct incorrect

press

limit switch poka-yoke)

detects correct

I

Figure 4 8. Poka-Yoke Example

Poka Yoke Systems

Because people can rnake mistakes even in inspection, nristake-

proofing relies on sensing nzechanisms culled poka-yoke system ,

which check conditions autonzatically and signul when problems

occur. I oka-yoke devices include electronic sensors such as limi t

switches and ~~hotoclectricyes, as well as passive devices sucli as

positioning pins that preven t l~ackward nsertion of a workpiece.

Figure 4-8 sho\tss an esantple of a limit switch used as a poka-yoke

system to prevent processing wlien the work is placed incorrectly.

Poka-Yoke ystems may use counters to make sure an operation is

repeated the correct number of times

The key to effective mistake-proofing is

determining

when cntd

~ I t c r e efect-causing conditions arise an d then figuring out how to

detect or prevent these conditions, every time. Sliopfloor people

have im portant knolt4edgc and ideas to share for developing and

imp lementing poka-yoke systerns that cheek every item and give

iniiiiecliate feedback on problerns.

T A K E F I V E

Take five minu tes t o think abou t

th s

questions and t o write

down your answers:

What types of actions or conditions can cause defects in your

process? At what point could you detect such an action or

condition?

Who would you want on a mistake-proofing team for your

process, and

why?


70/92

C H A P T E R 4

igure 4 9 Chronic Problems Require an Advanced Approach

P M nalysis

You may have experienced situations when you have to makc

4 ure

epeated repnirs ind adjustments on a recurring problem

4-9).

When a problem conies back,

i t

is usually because the sitrta-

tiori is not as simple as we originally thought it was. O u r Why

analysis may have followecl one factor to a clecpcr cause, but real

life is coniplex and interrelated-several factors often work

iogether to create a particular problem.

P Ad

analysis is u tool for

systen~crtically ncoiwing un d testing al l the possible factors that

could contribute to a cl~ronic roblem such as defects or failure.

T h e P n P-it1 analysis staiicls for phenomenon -the abnornial

event we want io conlrol. It also stands for pliysical -the perspec-

tive we take in viewing the pli enom enon .

bI

refers to mecha-

nism and to tlie 4Ms -a franiework of ca i~ sa lactors to examine

(Macli ine, MenAb'ornen [operator actions], Material, and IvIethod).

P-kl analysis is often spelled with a hyphen to clistinguisli it front

abbre\iatioils for preventive or plannecl maintenance.

The esscncc of P-&I Analysis is to look systetnutically a t n f e ydetail

s y

P a i n t

SO

110

physical phen~tnetzu , nderlying condition, or causal @or is

missed. Although product clefecis and equipment failures are tlie

losses most often addressed, P-b1 analysis can b e applied to any

loss that i~ivolves n equ ipment abnormality.


71/92

I M P R O V I N G O E E

P-kS analysis involves physically analyzing chronic losses accord-

ing to the p rinciples an d natural laws that govern Lliem. T h e basic

stepsof P-h/I analysis are

1.

Physiccilly analyzing chronic probierr~s ccording to the ir~acltinc~sper-

..

citing principles. This means understanding-in precise physical

n o w t o s t e o r

term-w hat happens \&en a n~ ac hinenalfunctions. 'To do this, the

team riwst first understand the physical standard for normal operation.

2

Defining the essential or constituent corlclitions underiyiilg the a bnoni~ al

pltmomenc~. his means understanding at the physical level d i a l con-

ditions exist when the macliine doesn't work right. Examples inc lude

the position of the work or the temperature ofa cult~ngool.

3

Iderttifiirlg ali factors thtrt contribute to the phenort~cntr n terms of the

fM

fictrnovork. 'This means examining the problem from several

viewpoints to uncover factors the tcam might otlicnvise overlook.

After going th rou gh these steps, the team surveys for the p resence

of the factors, then tests inqxo venterit actions. I~i gu re s -10 and

4-1 on the follo~v ing ages are

P-bI

analysis tables. Figure

3-10

shotvs how inf or~ nat ion s developed a t each step. Figure 4-1

d ~ o wio1v the tea m checks for factors an d tests its imp rovements .

P-144

unulysis is considered a n advanced tool becouse this level of

n y v o l n t

detective work requires rnore time, resources, a n d expertise th an

5

Why

analysis. For these reasons, focused improvement teams

may save P-M analysis for co mp lex or costly proble ms.

T K E F I V E

Take five minutes to think about these questions and to write

down your answers:

Think

o

a familiar situation where a machine problem recurs.

What do people usually do about it? Can it be resolved with

5

Why analysis

or

does

it

need more analysis?


72/92

C H A P T E R

ure 4 10. P M Analysis Tablo

5


73/92

I M P R O V I N G O EE

:ure 4 11. P M Analysis Survey Results


74/92

O F O R O P E R A T O R S

\jVc

measure O E E to monitor tlie condition of tlic equipm ent.

T h e point of using the O E E m easure is to drive improvement.

St ~s tai ne d mprovement requires a dedicated approach , with

management support.

\Vlien a problem returns, it often turns oirt that we have been

treating the symptoms of the problem , but not dealing with its

root cause. \Vhy analysis is a useful tool tliat brings its closer

to the root cause.

*Autonomous maintenance refers to activities carried out by

shopfloor teams to help stabilize basic equipment conditions

and spot problems early.

I t

cliangcs th e old view tliat operators

just run macliincs and maintenance people just

ix

them.

Along with preventive mairi tcnarice, a~~tonomousainte-

nance activities lielp raise O E E by m ainta ining proper opcr-

ating conditions, and stabilize it by detecting ,tbnormalities

before they turn into losses.

Tlirougli tlie steps of autonomous

maintenance

shopfloor

employees work with inaintcnancc technicians arid engineers

-

toward a com mo n goal-more effective eq i~i pm en t.

f~ocusecl quipment and process improvement

is

the TPR4 pil-

lar that deals mo d directly with improving equiprncnt-related

losses.

Autonomous n ia in tenance and p reven tive ma in tenance

improve OE E to a certain level, then help maintain basic opcr-

ating conditions to stabilize the O E E . To raise O E E beyond

this stabilized Ievcl, companies apply focused irn pro\w nen t.

Focriscd improvement involves targeted projects to reduce

specific losses, carried out by cross-f~tnction;tl eams tliat

include people with skills or resources an improvement plan

might require.


75/92

I M P R O V I N G

O E E

It's good for companies to attain a basic fitness level with

a u tono~ i iousmaintenance and prevent ive maintenance

before launching focused improvement projects to address

specific weaknesses.

Fo ci ~s ed mprov eme nt teams use a range of approaches,

inc lud ing approaches tha t address spec i f ic eq~~ipment -

related losses.

Setup and adjustment time is an improvement target for

OEE,

since it reduces the time in which the machine is

available to make products.

Shigeo Sh ingo invented

a

changeover improvemen t system

called single-minute escliange of die, or SMEU. 'This sys-

Len1 gives a three-stage approach for sllortening setup:

Documents

OEE for Operators.pdf