PowerPoint Presentation

OVERALL EQUIPMENT EFFECTIVENESS

AvailabilityPerformanceQualityOEEHasan Waqar

Pressured by current economic conditions and global competition, manufacturers are becoming increasingly sensitive about operational costs. In this environment, it pays to consider both creative and proven methods that you can use to bring your product to market at minimum cost and can be guaranteed by an effective maintenance system. What method meets this objective. What captures the reasons for downtime (e.g. machine conditions, material status, production personnel, or quality issues) and can deal with the individual machine level, a line level or the entire plant. At the plant level, What metrics can be correlated with other plant metrics to provide key performance indicators. What Survival Tool for Manufacturing?

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What is Overall Equipment Effectiveness (OEE)?In an ideal factory, equipment would operate 100% of the time at 100% capacity, with an output of 100% good quality. The difference between the ideal and the actual situation is due to losses. Calculating the overall equipment effectiveness (OEE) rate is a crucial element in any serious commitment to reducing equipment & process related wastes.In real life, however, this situation is rare.

The key strategy towards improving performance is reducing equipment & process related losses.These losses are known as - THE SIX BIG LOSSESThere are 3 Major categories1. Downtime Losses2. Speed Losses3. Defect Losses

BreakdownsChangeovers

Minor stoppagesReduced speedReworkRejects(Availability rate)(Performance rate)(Quality rate)

Downtime refers to time when the machine should be running, but it stands still. Downtime includes two main types of loss:Equipment failures, Setup and adjustments.Downtime Losses (Lost Availability)

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1. Equipment Failures Loss Sudden and unexpected equipment failures, or breakdowns, are an obvious cause of loss, since an equipment failure means that the machine is not producing any output.

2. Setup & Adjustments Loss. Most machine changeovers require some period of shutdown so that internal tools can be exchanged. Time between the end of production of the last good part and the end of production of the next good part is downtime. This downtime loss often includes substantial time spent making adjustments until the machine gives acceptable quality on new part.

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A speed loss means that the equipment is running, but it is not running at its maximum designed speed. Speed losses include two main types of lossIdling and minor stoppagesReduced speed operation.

Speed Losses (Lost Performance)

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1. Idling and Minor Stoppages When a machine is not running smoothly and at a stable speed, it will lose speed and obstruct a smooth flow. The idling and stoppages in this case are caused not by technical failures, but by small problems such as parts that block sensors or get caught in chutes. Although the operator can easily correct such problems when they occur, the frequent halts can dramatically reduce the effectiveness of the equipment.

2. Reduced Speed Operation. Reduced speed operation refers to the difference between the actual operating speed and the equipments designed speed (also referred to as nameplate capacity). There is often a gap between what people believe is the maximum speed and the actual designed maximum speed. The goal is to eliminate the gap between the actual speed and the designed speed. Significant losses from reduced speed operation are often neglected or underestimated.

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A defect loss means that the equipment is producing products that do not fully meet the specified quality characteristics. Defect losses include two major types of loss: Scrap and reworkStartup losses.Defect Losses (Lost Quality)

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1. Scrap and Rework Loss occurs when products do not meet quality specifications, even if they can be reworked to correct the problem. The goal should be zero defects - to make the product right the first time and every time.2. Startup Losses Startup losses are yield losses that occur when production is not immediately stable at equipment startup, so the first products do not meet specifications. This is a latent loss, often accepted as inevitable, and it can be surprisingly large.

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Six Loss and Counter Measures The following table explains the Six Losses and how they can be addressed:

The 3 major categories of equipment related losses are also the main ingredients for determining the OEE of the cubicle.OEE is calculated by combining all 3 factors.Availability ratePerformance rateQuality rate

1. Availability rateThe time the equipment or process is really running, versus the time it could have been running.2. Performance rateThe quantity produced during the running time, versus the potential quantity, given the designed speed of the machine or process3. Quality rate.The amount of good products versus the total amount of products produced.

OEE is a performance measurement comprised of asset availability, production rate and quality levels.Elements of OEE

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AVAILABILITYPERFORMANCEQUALITYTotal Operating TimeNet Operating TimeRunning TimeTarget OutputActual OutputActual OutputGood OutputABCDEFPlanned DowntimeBreakdownsChangeoversMinor StopsRunning SlowReworkRejectsOEE = B/A x D/C x F/EAVAILABILITY PERFORMANCE QUALITYHOW DO WE CALCULATE OVERALL EQUIPMENTEFFECTIVENESS

Elements of OEE

AVAILABILITYPERFORMANCEQUALITYTotal Operating TimeNet Operating TimeRunning TimeTarget OutputActual OutputActual OutputGood OutputABCDEFPlanned DowntimeBreakdownsChangeoversMinor StopsRunning SlowReworkRejects

OEE = B/A x D/C x F/ELOST EFFECTIVENESSAVAILABILITY PERFORMANCE QUALITYHOW DO WE CALCULATE OVERALL EQUIPMENTEFFECTIVENESS

ReworkRejectsMinor StopsRunningBreakdownsChangeoversPlanned Downtime

Availability rate is the time the equipment is really running, versus the time it could have been running. A low availability rate reflects downtime losses: Equipment failures Setup and adjustmentsPerformance rate is the quantity produced during the running time, versus the potential quantity, given the designed speed of the equipment. A low performance rate reflects speed losses: Idling and minor stoppages Reduced speed operationQuality rate is the amount of good products versus the total amount of products produced. A low quality rate reflects defect losses: Scrap and rework Startup losses

Elements of OEEAvailability Rate = Running Time / Planned Production Time Performance rate = Ideal Cycle Time / (Operating Time / Total Pieces) = (Total Pieces / Operating Time) / Ideal Run Rate Quality rate = Good Pieces / Total Pieces

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To calculate OEE, we multiply the three factors together:

OEE = Availability Rate x Performance Rate x Quality Rate

Calculation of OEE The diagram shows graphically how the losses in availability, performance, and quality work together to reduce OEE of a machine. The top bar, total operating time, shows the total time a machine is available to make a product. This is usually considered to be 480 minutes per 8-hour shift.

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Bars A and B show Availability Bar A represents the net operating time, which is the time available for production after subtracting planned downtime (no scheduled production) such as a holiday, no orders, or no personnel. Bar B shows the actual running time after subtracting downtime losses such as equipment failures and setup and adjustments. Bars C and D show Performance Bar C represents the Target Output of the machine during the running time, calculated at the designed speed of the machine. Below it, a shorter fourth bar, D, represents the actual output, reflecting speed losses such as minor stoppages and reduced operating speed.Calculation of OEE

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Bars E and F show Quality As you can see, the actual output (E) is reduced by defect losses such as scrap and startup losses, shown as the shaded portion of bar F. As this diagram shows, the bottom-line good output is only a fraction of what it could be if losses in availability, performance, and quality were reduced. The diagram also suggests that to maximize effectiveness- to grow the good output on the bottom line- you must reduce not only quality losses, but also availability and performance losses. The three factors work together, and the lowest percentage is usually the constraint that most needs addressing.Calculation of OEE

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The table below contains hypothetical shift data, to be used for a complete OEE calculation, starting with the calculation of the OEE factors of Availability, Performance, and Quality. Note that the same units of measurement (in this case minutes and pieces) are consistently used throughout the calculations.Example of OEE CalculationItemDataShift Length8 hours = 480 min.Short Breaks2 15 min. = 30 min.Meal Break1 30 min. = 30 min.Down Time47 minutesIdeal Run Rate60 pieces per minuteTotal Pieces19,271 piecesReject Pieces423 pieces

Planned Production Time= [Shift Length - Breaks]= [480 - 60] = 420 minutes

Operating Time= [Planned Production Time - Down Time]= [420 - 47] = 373 minutes

Good Pieces= [Total Pieces - Reject Pieces]= [19,271 - 423] = 18,848 pieces

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Example of OEE CalculationAvailability= Operating Time / Planned Production Time= 373 minutes / 420 minutes= 0.8881 (88.81%)

Performance= (Total Pieces / Operating Time) / Ideal Run Rate= (19,271 pieces / 373 minutes) / 60 pieces per minute= 0.8611 (86.11%)

Quality= Good Pieces / Total Pieces= 18,848 / 19,271 pieces= 0.9780 (97.80%)

OEE= Availability Performance Quality= 0.8881 x 0.8611 x 0.9780= 0.7479 (74.79%)

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World-Class Goal of OEE In practice, generally accepted world-class goals for each factor are quite different from each other, as is shown in the table below. Of course, every manufacturing plant is different. Worldwide studies indicate that average OEE rate in manufacturing plants is 60%. As you can see from the table, a World Class OEE is considered to be 85% or better. There is room for improvement in most manufacturing plants OEE FactorWorld ClassAvailability90.0%Performance95.0%Quality99.9%Overall OEE85.0%

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Goal of measuring OEE is to improve the effectiveness of your equipment. Since equipment effectiveness affects shop-floor employees more than any other group, it is appropriate for them to be involved in tracking OEE and in planning and implementing equipment improvements to reduce lost effectiveness. Recommend that the operator collect the daily data about the equipment for use in the OEE calculation. Collecting this data will Teach the operator about the equipment Focus the operators attention on the losses Grow a feeling of ownership of the equipment Goal & Benefits of OEE Measurement

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The shift leader or line manager is often the one who will Receive the daily operating data from the operator and Process it to develop information about the OEE. Working hands on with the data will; Give the leader/manager basic facts and figures on the equipment Help the leader/manager give appropriate feedback to the operators and others involved in equipment improvement Allow the leader to keep management informed about equipment status and improvement resultsGoal & Benefits of OEE Measurement

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Managers can monitor OEE plant metrics and drill down to find the root causes of problems, getting minute-by-minuteupdates to enable real-time process improvement. Downtime reductions can be readily achieved by using OEE to gain visibility into machine status and to analyze problems. Facility operators and supervisors spend an enormous amount of time recording, analyzing, & reporting on downtime, then further explaining these reports to management. OEE system captures & reports downtime and efficiency automatically. This eliminates the time wasted in non-value-added reporting and allows personnel to focus on more valuable tasks. With OEE, everyone from the plant floor to the boardroom is more informed, more often, more easily. A Survival Tool for Manufacturing

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OEE also enables predictive maintenance, which can dramatically reduce repair costs. As the information on factors contributing to downtime grows in the historical database, the maintenance department can classify trends and predict impending failures. Also, by interfacing OEE system with a Computerized Maintenance Management System (CMMS), the maintenance department can take proactive steps to do predictive maintenance. For example, maintenance can order the necessary part in advance and get better rates. It can allocate repair personnel from an existing pool of resources instead of hiring someone on an emergency basis. A Survival Tool for Manufacturing

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All this can result in huge savings compared with repairing a machine after the breakdown has happened. The net effect of reduced machine downtime, higher productivity of operators, and reduced defects is the ability to achieve higher production levels with the same amount of resources. A Survival Tool for Manufacturing

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Generally, operations of most manufacturing plants are running at only 60% efficiency during uptime. The other 40% of the total equipment time are lost due to various downtime. Among which, 15% of plant utilization are lost to scheduled downtime. Scheduled downtime can be preventive maintenance, setup, change of consumables/materials, production test and so on. Unscheduled downtime accounts for 10%, which is usually difficult to quantify but preventable if proper preventive measures are taken. The remaining significant 15% of the total utilization is lost as hidden downtime. Hidden downtime can be due to shift interruptions, minor maintenance issues, operator not available and so on, which are difficult to quantify and remain unnoticed without a monitoring system. Plant Utilization Statistics

UptimeScheduledDowntimeUnscheduledDowntimeHiddenDowntime

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Importance of OEE in the Strategic planning process

OEE can save companies from making wrong investment decisionsOEE can also be used to ensure that equipment suppliers deliver what they promised!

In essence, OEE is the missing link between money and machines!

OEE gives you answers to the following questionsHow confident were you about the investment when you signed the cheque ?

Exactly how well is the new plant performing now?

Do WE use an appropriate measure of machine performance ?

In the absence of the OEE measure, how will WE ever know?

Any Question

Thanks EVERYONE