IE 460 - Lean Enterprise and Applications

Homework 3

Livia Rodrigues Moreira

ID: 50131071

IE 460/500: Homework #3: OEE (13 pts)

Due Date: Thursday 2/12/15
1) Data is recorded daily on a semi automated machine used in a value stream you are assigned to improve
Day
1
2
3
4
5
6
7
8
9
10 11 12 13 14 15
Breakdown
2
8
5
7
3
3
8
5
9
hrs
Set-up hrs
1
1
2
1
1
Defective
12 30 30 10 25 40 12 35 13 27 87 33
4
57 80
Products(u
0
0
0
0
0
0
nits)
Correct
48 32 55 49 57 18 49 57 46 52 47 55 58 52 53
Products
0
2
0
0
5
2
5
5
9
3
3
7
5
2
2
The company works 24/7. The theoretical cycle time is 1.75 minutes per part.
a) What are the quality, performance, and availability rates and Overall Equipment efficiency? (4 pt)
b) Which measure would you apply first to improve the OEE indicator? Why? (1 pt)
2) You have been assigned to improve a value stream that has an automated machine making parts for a
subsequent assembly operation. The Takt time for the machine is 5 seconds. The performance of the
machine is recorded in the departmental log books. The last 10 days of data is shown below.
Day
Breakdown
hrs
Set-up hrs
Defective
Products(uni
ts)
Correct
Products

1
4

2
3

3
-

4
6

5
-

6
1

7
1

8
1

9
-

10
3

1
1225

2
325

1
875

1
500

2
1800

1
1500

1
435

1
2220

2
770

1
850

7775

8175

1152
5

6000

1030
0

9500

9565

8280

1133
0

8650

The operation runs 2 shift or 16 hours of intended working time (breaks and lunch are taken outside of this
16 hours. The machine was designed to produce 6000 parts in 8 hours.
a) What are the quality, performance, and availability rates and Overall Equipment efficiency? (4 pt)
b) How many orders (i.e. number of units) would not be filled during this 10 day period. (2 pts)
The manufacturing Engineer has suggested a project to replace the machine so increasing its production
rate to 7000 parts per shift. He is also stated that a new machine may not breakdown as often and produces
better quality parts. The lead time will be several months and cost $50,000 USD but he is confident that it
will solve the production problems.
c) What do you think? Is the additional capacity required? Is there anything you can start working on
today? (2 pts)