Sei sulla pagina 1di 15

OEE:OEE: OverallOverall EquipmentEquipment (Service)(Service) EffectivenessEffectiveness

(Service)(Service) EffectivenessEffectiveness Mike Chambers – chambers@abidian.com – 843.536.0943
(Service)(Service) EffectivenessEffectiveness Mike Chambers – chambers@abidian.com – 843.536.0943
(Service)(Service) EffectivenessEffectiveness Mike Chambers – chambers@abidian.com – 843.536.0943

Mike Chambers – chambers@abidian.com – 843.536.0943 ASQ Section 1124 Presentation Copyright 2007- Abidian, Inc. All Rights Reserved

chambers@abidian.com – 843.536.0943 ASQ Section 1124 Presentation Copyright 2007- Abidian, Inc. All Rights Reserved
chambers@abidian.com – 843.536.0943 ASQ Section 1124 Presentation Copyright 2007- Abidian, Inc. All Rights Reserved

We’ve learned about …

We’ve learned about … 2
We’ve learned about … 2
We’ve learned about … 2
We’ve learned about … 2
We’ve learned about … 2

2

We’ve learned about … 2
We’ve learned about … 2
We’ve learned about … 2
Goals for Tonight • Learn about OEE and how to use it to improve our

Goals for Tonight

Goals for Tonight • Learn about OEE and how to use it to improve our overall

• Learn about OEE and how to use it to improve our overall efficiency, throughput, and quality in a plant, office, or service environment

• Gain an understanding of the financial opportunities available

• Learn how to use OEE to

1)

Improve real-time efficiencies

2)

Ensure compliance to budget

3)

Evaluate capital expenditures

4)

Compare one operation to another

3

2) Ensure compliance to budget 3) Evaluate capital expenditures 4) Compare one operation to another 3

Imagine a new car …

Imagine a new car … 4
Imagine a new car … 4

4

Imagine a new car … 4

Ideally …

Ideally … WeWe wantwant ourour systemssystems toto operateoperate 100100%% ofof thethe timetime atat 100%100% ofof

WeWe wantwant ourour systemssystems toto operateoperate 100100%% ofof thethe timetime atat 100%100% ofof ourour bestbest demonstrateddemonstrated speedspeed producingproducing 100%100% goodgood qualityquality product/servicesproduct/services

demonstrateddemonstrated speedspeed producingproducing 100%100% goodgood qualityquality product/servicesproduct/services 5

5

demonstrateddemonstrated speedspeed producingproducing 100%100% goodgood qualityquality product/servicesproduct/services 5

Reality is …

Reality is … OurOur systemssystems areare notnot idealideal …… it’sit’s unreasonableunreasonable toto

OurOur systemssystems areare notnot idealideal …… it’sit’s unreasonableunreasonable toto expectexpect toto operateoperate allall thethe timetime atat bestbest everever speedsspeeds producingproducing nothingnothing butbut goodgood product/servicesproduct/services

6

atat bestbest everever speedsspeeds producingproducing nothingnothing butbut goodgood product/servicesproduct/services 6
atat bestbest everever speedsspeeds producingproducing nothingnothing butbut goodgood product/servicesproduct/services 6

Soooo …Why is OEE so important?

Soooo …Why is OEE so important? • Companies make money by adding value to materials and

• Companies make money by adding value to materials and services to make products customers want

• As most companies use machines, people, and production lines to add value to their products, it’s important they perform efficiently

• Overall Equipment/Service Effectiveness (OEE) is a metric used in Lean and Six Sigma to indicate how efficiently business systems are performing

• OEE promotes openness in information sharing and a no-blame approach in handling system-related issues.

7

performing • OEE promotes openness in information sharing and a no-blame approach in handling system-related issues.

The Dollars: Overall Equipment Effectiveness (OEE)

The Dollars: Overall Equipment Effectiveness (OEE) 8 • Software simulations can help vividly illustrate the value
The Dollars: Overall Equipment Effectiveness (OEE) 8 • Software simulations can help vividly illustrate the value

8

Software simulations can help vividly illustrate the value of increasing the OEE components of Performance, Avail- ability, and Yield

In this example, improving OEE one (1) percentage point from 28.1% is worth $120,000 per year … note this is about a $30M business and the profit per piece is only $10

Similarly, improving the current sigma value of 3.27 by 1 is worth over $1.1M per year!

profit per piece is only $10 • Similarly, improving the current sigma value of 3.27 by

Overall Equipment Effectiveness (OEE)

Overall Equipment Effectiveness (OEE) • OEE helps us to maximize 1. Performance … speed and/or utilization

• OEE helps us to maximize

1. Performance … speed and/or utilization

2. Availability … uptime

3. Yield … quality

• On a real-time and budgeting basis

• Allows us to compare processes across plants, divisions, offices, and companies

9

On a real-time and budgeting basis • Allows us to compare processes across plants, divisions, offices,

Availability (Uptime)

Availability (Uptime) Availability : A comparison of the potential operating time and the time in which

Availability: A comparison of the potential operating time and the time in which the system is actually making products or providing services

Time Available (24/7/365)
Time Available (24/7/365)

Time Available (24/7/365)

Time Operating Time running
Time Operating Time running

Time Operating

Time running

Availa-

bility

Losses

Time Available (24/7/365) Time Operating Time running Availa- bility Losses
Time Available (24/7/365) Time Operating Time running Availa- bility Losses
Time Available (24/7/365) Time Operating Time running Availa- bility Losses
Time Available (24/7/365) Time Operating Time running Availa- bility Losses
Time Available (24/7/365) Time Operating Time running Availa- bility Losses
Time Available (24/7/365) Time Operating Time running Availa- bility Losses
Time running Availa- bility Losses AVAILABILITY (1) Breakdowns, minor stops, offline PM’s,
Time running Availa- bility Losses AVAILABILITY (1) Breakdowns, minor stops, offline PM’s,
AVAILABILITY (1) Breakdowns, minor stops, offline PM’s, meetings, no sales Time Avail-Downtime x 100% Time
AVAILABILITY
(1) Breakdowns, minor stops, offline PM’s,
meetings, no sales
Time Avail-Downtime
x 100%
Time Available
(2) Changeovers & adjustments
ForFor ExampleExample: We operate
7 hours during an 8 hour shift
… our Availability would
be 7 divided by 8 or 87.5%

10

ExampleExample: We operate 7 hours during an 8 hour shift … our Availability would be 7

Yield (Quality)

Yield (Quality) YIELD Yield : A comparison of the raw materials (or occurrences) put in to

YIELD

Yield: A comparison of the raw materials (or occurrences) put in to the process and the number of products/services that meet the customer’s specifications

(or occurrences) put in to the process and the number of products/services that meet the customer’s
(or occurrences) put in to the process and the number of products/services that meet the customer’s
Amount Produced/Served
Amount Produced/Served
Amount Produced/Served

Amount Produced/Served

Amount Produced/Served
Amount Produced/Served
Amount Produced/Served
Good Material/ Services Time running Quality Losses (5) Quality defects in process, rework, YIELD callbacks,
Good Material/ Services Time running Quality Losses (5) Quality defects in process, rework, YIELD callbacks,

Good Material/

Services

Time running

Quality

Losses

(5) Quality defects in process, rework, YIELD callbacks, returns, … Actual output - Defects x
(5) Quality defects in process, rework,
YIELD
callbacks, returns, …
Actual output - Defects
x
100%
(6) Start up and Transition losses
Actual input
For Example For Example: We input 100 parts of which 3 are bad at output
For Example
For Example: We input
100 parts of which 3 are bad at
output … our yield is 100 minus
3
3
divided by 100 or 97%
divided by 100 or 97%

11

Performance (Utilization or Speed)

PERFORMANCE

100 or 97% 11 Performance (Utilization or Speed) PERFORMANCE Performance : A comparison of the speed/actual

Performance: A comparison of the speed/actual output with what the system could be consistently producing in the same timeframe

Time operating

at maximum

rate

Perfor- mance losses
Perfor-
mance
losses
Utilization (3) Idling, Breaks, Minor Stops … Actual Output x 100% (4) Rate Losses (including
Utilization
(3) Idling, Breaks, Minor Stops …
Actual Output
x
100%
(4) Rate Losses (including ramp up)
Max output in time
running
Rate Losses (including ramp up) Max output in time running ForFor ExampleExample :: WeWe produceproduce 8080

ForFor ExampleExample:: WeWe produceproduce 8080 units versus a best ever of 100 … our Performance would be 80 divided by 100 or 80%

12

or

Speed Actual Speed x 100% Best Demonstrated Speed
Speed
Actual Speed
x
100%
Best Demonstrated
Speed
… our Performance would be 80 divided by 100 or 80% 12 or Speed Actual Speed

6

Overall Equipment/Service Effectiveness (OEE)

Overall Equipment/Service Effectiveness (OEE) Time Available (24/7/365) Availa- Time Operating bility Losses Perfor-
Time Available (24/7/365) Availa- Time Operating bility Losses Perfor- Time Operating at Maximum Rate mance
Time Available (24/7/365)
Availa-
Time Operating
bility
Losses
Perfor-
Time Operating at
Maximum Rate
mance
losses
Time Operating
at
Quality
Maximum Rate
Losses
and
Good Quality
at Quality Maximum Rate Losses and Good Quality “6 Big Losses” Availability Time Avail-Downtime x
at Quality Maximum Rate Losses and Good Quality “6 Big Losses” Availability Time Avail-Downtime x
at Quality Maximum Rate Losses and Good Quality “6 Big Losses” Availability Time Avail-Downtime x
at Quality Maximum Rate Losses and Good Quality “6 Big Losses” Availability Time Avail-Downtime x
at Quality Maximum Rate Losses and Good Quality “6 Big Losses” Availability Time Avail-Downtime x

“6 Big Losses”

Availability Time Avail-Downtime x 100% Time Available
Availability
Time Avail-Downtime
x
100%
Time Available

x

Time Avail-Downtime x 100% Time Available x Performance Actual Output x 100% Max Output in Time
Time Avail-Downtime x 100% Time Available x Performance Actual Output x 100% Max Output in Time
Performance Actual Output x 100% Max Output in Time Running
Performance
Actual Output
x 100%
Max Output in Time
Running

x

Yield Actual Output - Defects x 100% Actual Input
Yield
Actual Output - Defects
x
100%
Actual Input
x Yield Actual Output - Defects x 100% Actual Input (1) Breakdowns, Minor Stops, Offline PM’s,

(1) Breakdowns, Minor Stops, Offline PM’s, Meetings, No Sales

(2) Set Ups, Changeovers & Adjustments

(3) Idling, Breaks & Minor Stops

(3) Idling, Breaks & Minor Stops (4) Rate Losses (including ramp up)

(4) Rate Losses (including ramp up)

(3) Idling, Breaks & Minor Stops (4) Rate Losses (including ramp up)
(3) Idling, Breaks & Minor Stops (4) Rate Losses (including ramp up)
(3) Idling, Breaks & Minor Stops (4) Rate Losses (including ramp up)
(3) Idling, Breaks & Minor Stops (4) Rate Losses (including ramp up)
(3) Idling, Breaks & Minor Stops (4) Rate Losses (including ramp up)

(5) Quality defects in process, rework,

callbacks, returns, …

(6) Start up and Transition losses

OEE for World Class Batch Manufacturers is 80+ %

13

rework, callbacks, returns, … (6) Start up and Transition losses OEE for World Class Batch Manufacturers

OEE: How it’s Calculated

OEE: How it’s Calculated OEE is the product of Three Components: 1. PERFORMANCE (Speed/Utilization) = Percentage

OEE is the product of Three Components:

1. PERFORMANCE (Speed/Utilization) = Percentage of the output (# of parts or

occurrences) that the process actually produced, while it was running or the actual speed vs. the best demonstrated speed for a given product, product family, service, or transaction

X

2. AVAILABILITY (Uptime) = Percentage of the total available time that the process/equipment was actually operating vs. 7/24/365

X

3. YIELD = Percentage of the total parts/services produced that were good

OEE = Performance x Availability x Yield

14

Percentage of the total parts/services produced that were good O E E = P erformance x

OEE: How it’s Calculated (Cont.)

OEE: How it’s Calculated (Cont.) Let’s look at an example: We have a good plant. It

Let’s look at an example:

We have a good plant. It averages 90% uptime on a 7/24 basis. Production for the last month was 12,500 pallets versus a best ever month of 14,000 pallets. Scrap ran about 1.5%.

OEE

= Overall Equipment Effectiveness

= Performance x Availability x Yield

month of 14,000 pallets. Scrap ran about 1.5%. OEE = Overall Equipment Effectiveness = Performance x
What is our OEE? = (12,500/14,000) x (0.90) x (.985) = (0.893)(0.90)(.985) = 0.792 15
What is our OEE?
= (12,500/14,000) x (0.90) x (.985)
= (0.893)(0.90)(.985)
= 0.792
15

OEE: How it’s Calculated (Cont.)

Let’s look at an example:

This is a good plant, yet the OEE

We have a good plant. It averages 90% uptime on a

calculation gives us insight that even

7/24 basis. Production for the last month was 12,500

better results might be achieved

pallets versus a best ever month of 14,000 pallets.

Scrap ran about 1.5%.

by attacking performance and availability issues

by attacking performance and availability issues

OEE

What is our OEE?

= Overall Equipment Effectiveness

= Performance x Availability x Yield

= (12,500/14,000) x (0.90) x (.985)

= (0.893)(0.90)(.985)

= 0.792

16

Effectiveness = Performance x Availability x Yield = (12,500/14,000) x (0.90) x (.985) = (0.893)(0.90)(.985) =

OEE: How it’s Calculated (Cont.)

OEE: How it’s Calculated (Cont.) Let’s look at service/transactional example: An Accounts Payable Department for a

Let’s look at service/transactional example:

An Accounts Payable Department for a Fortune 100 company operates 2 8-hour shifts Monday through Friday. For a given month they processed 256,126 invoices versus a best ever of 278,309. During the 28-day month they had 12,004 invoices paid after the due date, 58,732 paid 5 or more business days before the due date, and 38 that were missed/paid incorrectly.

OEE

What is the OEE?

= Overall Equip (Service) Effectiveness

= Performance x Availability x Yield

= (256,126/278,309) x ((16 x 5) / (24 x 7)) x (256,126 - 12,004 - 58,732 - 38) / 256,126

= (0.92)(0.48)(.72)

= 0.318

17

= (256,126/278,309) x ((16 x 5) / (24 x 7)) x (256,126 - 12,004 - 58,732

Overall Equipment Effectiveness (OEE)

Overall Equipment Effectiveness (OEE) The last example is consistent with most businesses having an opportunity to

The last example is consistent with most businesses having an opportunity to increase capacity and/or productivity by 25 to over

100%!!

18

is consistent with most businesses having an opportunity to increase capacity and/or productivity by 25 to
is consistent with most businesses having an opportunity to increase capacity and/or productivity by 25 to

To compare OEE …

To compare OEE … For comparison purposes … everyone should use 24/7/365 as the basis for

For comparison purposes … everyone should use 24/7/365 as the basis for their availability and best demonstrated (versus plan or design) performance (speeds/ utilization)

(versus plan or design) performance (speeds/ utilization) Counting unscheduled time will encourage creative ideas
Counting unscheduled time will encourage creative ideas for reducing the time!
Counting unscheduled
time will encourage
creative ideas for
reducing the time!

19

Budgeted Production Efficiency (BPE)

Budgeted Production Efficiency (BPE) “It’s not fair” to a business that’s limited by sales to take

“It’s not fair” to a business that’s limited by sales to take a “hit”

is
is

for not being able to run 24/7 … for this reason a Budgeted Production Efficiency (BPE) should be calculated to compare the business to budgeted/planned production schedules, line speeds, etc.

20

(BPE) should be calculated to compare the business to budgeted/planned production schedules, line speeds, etc. 20

Capital Appropriations

Capital Appropriations Before expanding a business or adding a line, we should ensure we’ve maximized current

Before expanding a business or adding a line, we should ensure we’ve maximized current production; i.e., performance, availability and yield!

21

or adding a line, we should ensure we’ve maximized current production; i.e., performance, availability and yield!
or adding a line, we should ensure we’ve maximized current production; i.e., performance, availability and yield!

Realtime Production Effectiveness (RPE)

Realtime Production Effectiveness (RPE) For comparison and trending purposes, “OEE” should be based on at least

For comparison and trending purposes, “OEE” should be based on at least a week’s worth of data, and ideally, a month or more … for realtime trending, calculate instead a Realtime Production Efficiency (RPE) using available performance, availability, and yield information

instead a Realtime Production Efficiency (RPE) using available performance, availability, and yield information 22

22

instead a Realtime Production Efficiency (RPE) using available performance, availability, and yield information 22

Real-time Work Area Scoreboard

PERFORMANCE: 95.6 SPEED Compare current operations against best ever 00:22:29 DOWNTIME 97.5 YIELD 89.0 EFFICIENCY
PERFORMANCE:
95.6 SPEED
Compare current operations
against best ever
00:22:29
DOWNTIME
97.5
YIELD
89.0
EFFICIENCY
AVAILABILITY:
Track in “seconds” to create
a sense of urgency
RPE:
Realtime Prod Efficiency
… reset each shift/day
YIELD:
Ideally “weighed/counted”
Might have
to to estimate… estimate… include everything!
23

Improving OEE

Improving OEE • We use OEE to monitor the condition of our equipment … similar to

• We use OEE to monitor the condition of our equipment … similar to the way a nurse takes your temperature to see whether you’re health has improved

• The point of using OEE is to drive system improvement

• Some improvement will occur from “awareness” when you start to measure OEE

• Sustained improvement requires a dedicated approach

24

will occur from “awareness” when you start to measure OEE • Sustained improvement requires a dedicated
will occur from “awareness” when you start to measure OEE • Sustained improvement requires a dedicated

Improving OEE

Improving OEE • Your approach should incorporate quantitative expectations, milestones, and a firm schedule for
Improving OEE • Your approach should incorporate quantitative expectations, milestones, and a firm schedule for

Your approach should incorporate quantitative expectations, milestones, and a firm schedule for improvement

A proven, effective way of quickly improving OEE is through a kaizen improvement event … the kaizen is also a great way to also increase worker/supervisor buy-in

25

OEE is through a kaizen improvement event … the kaizen is also a great way to

Summary

Summary • OEE helps maximize throughput efficiency • It focuses on P erformance, A vailability, and
Summary • OEE helps maximize throughput efficiency • It focuses on P erformance, A vailability, and

• OEE helps maximize throughput efficiency

• It focuses on Performance, Availability, and Yield

• OEE should be based on data for at least a week, and ideally, a month to wipe out the effects of product mix

• Use Realtime Production Efficiency (RPE) to maximize realtime/current operations

• Before capital expansions, check your OEE!

• To account for circumstances “beyond your control” … i.e., don’t have enough sales to run 24/7 … calculate a Budgeted Production Efficiency (BPE) to compare your business to budget/plan

26

enough sales to run 24/7 … calculate a Budgeted Production Efficiency (BPE) to compare your business
QuestionsQuestions …… Comments??Comments?? Thanks for your time and consideration! Mike Chambers – Abidian, Inc. –

QuestionsQuestions …… Comments??Comments??

Thanks for your time and consideration!

Mike Chambers – Abidian, Inc. – Sr. Principal chambers@abidian.com – 843.536.0943

27

your time and consideration! Mike Chambers – Abidian, Inc. – Sr. Principal chambers@abidian.com – 843.536.0943 27

ABIDIAN: Business-Speak for Excellent Change

ABIDIAN: Business-Speak for Excellent Change Abidian, a recognized leader in productivity improvement, provides hands-on
ABIDIAN: Business-Speak for Excellent Change Abidian, a recognized leader in productivity improvement, provides hands-on

Abidian, a recognized leader in productivity improvement, provides hands-on training in Lean, Six Sigma, Maintenance Excellence, and Total Productive Maintenance/Manufacturing. Learn more about us at abidian.com.

28

Six Sigma, Maintenance Excellence, and Total Productive Maintenance/Manufacturing. Learn more about us at abidian.com. 28

ABIDIAN: Business-Speak for Excellent Change

ABIDIAN: Business-Speak for Excellent Change Over 6000 individuals from North America, Europe, and Asia have attended

Over 6000 individuals from North America, Europe, and Asia have attended our workshops, presentations, and improvement events

Recognized Leadership in Productivity Improvement
Recognized Leadership
in Productivity
Improvement
events Recognized Leadership in Productivity Improvement Partners with ASQ 1124, Florence Darlington Technical

Partners with ASQ 1124, Florence Darlington Technical College and the new Southeastern Institute of Manufacturing and Technology

29

with ASQ 1124, Florence Darlington Technical College and the new Southeastern Institute of Manufacturing and Technology

The Numbers …

The Numbers … • 97% of the attendees at Abidian's workshops rated the knowledge of their

• 97% of the attendees at Abidian's workshops rated the knowledge of their workshop facilitator as excellent

• 94% of all workshop attendees rated the hands-on exercises and practicality of the illustrations provided as very good or better

• 100% of our attendees have given their kaizen improvement event or workshop an overall rating of very good or excellent

• Projected savings identified by our customers from our 2006 workshops, kaizens, and in-plant efforts ranged up to $20 million

30

savings identified by our customers from our 2006 workshops, kaizens, and in-plant efforts ranged up to