Opa MPD DDDD

Overall Equipment Effectiveness
OEE - sweating manufacturing assets against the clock

to maximise the output of prime quality product
© Shire Systems Limited

This slideshow will briefly cover…
Overall Equipment Effectiveness & the

OEE metric
The Six Big Losses
The ‘Hidden Factory’
Theory of Constraints - manufacturing
bottlenecks & pinchpoints
It’s purpose is to merely place things in context.

Further reading is required for an in-depth
understanding of OEE

OEE fundamentals
OEE is data driven
Good data collection and analysis are key

requirements for a successful OEE project

OEE fundamentals
OEE is data driven

If you can’t put a number on

it, you can’t measure it –
and, if you can’t measure it,
you can’t manage it!

OEE fundamentals
OEE is data driven

…plus, if you’re not

keeping score, you’re
only practicing!

OEE fundamentals
Manufacturing assets must be sweated!
Manufacturing equipment must run

flat out at face plate rating – with
vertical start-ups and shutdowns,
minimal stops and no defects in
production output

OEE fundamentals

production output
The only rest is when

the whistle blows…
OEE fundamentals

Beware of ‘twilight’ production output
production and
reworking

OEE fundamentals

production output
An IDEAL!
The world class
benchmark is 6 Sigma

OEE fundamentals

production output
3.4 defects
An IDEAL! per million
The world class ‘opportunities’
benchmark is 6 Sigma

The OEE Metric

The OEE metric
As far as capital manufacturing assets are
concerned…
Time is money!
Time ‘lost’ is money down
the drain
Time must be strictly
accounted for

The OEE metric
OEE =
ACTUAL quantity of good products produced
Total quantity that COULD BE produced

*
* In the scheduled production time
(loading time)

The OEE metric
OEE =

*
(loading time)
COULD = without losses due to:

The OEE metric
OEE =

*
Resulting in LOW
• Output
(loading time)
COULD = without losses due to:

• Overall efficiency
• Yield
• First-time pass rate
• Quality
• OTIF delivery
(‘on time & in full’)

The OEE metric
OEE =

*
(loading time)
OEE is calculated
by measuring the
‘Six Big Losses’ 123456

The Six Big Losses

The Six Big Losses
1
Equipment Failure
2
Setup & Adjustments
3
Idling &
Minor Stoppages
4
Reduced Speed
5
Scrap & Rework
6
Startup Low Yield

The Six Big Losses
1
Equipment Failure
2
Setup & Adjustments
3
d Idling &
Minor Stoppages
h
4
Reduced Speed
5
Scrap & Rework
6
Startup Low Yield

The Six Big Losses
1
Equipment Failure
2
Setup & Adjustments
3
d Idling &
Minor Stoppages
h
4
Reduced Speed
5
Scrap & Rework
6
Startup Low Yield

The Six Big Losses
1
Equipment Failure
2
‘Single Minute Setup & Adjustments
Exchange of Die’
3
d Idling &
Minor Stoppages
h
4
Reduced Speed
5
Scrap & Rework
6
Startup Low Yield

The Six Big Losses
1
Equipment Failure
2
‘Single Minute Setup & Adjustments
Exchange of Die’
3
Benchmark : d Idling &
Minor Stoppages
Formula 1 h
pit stop!
4
Reduced Speed
5
Scrap & Rework
F1 workflow also used

to ‘turnaround’ Jumbo 6
jets and plan complex Startup Low Yield
surgical procedures
The Six Big Losses
1
Equipment Failure
2
Setup & Adjustments
3
Idling &
Minor Stoppages
4
Reduced Speed
5
Scrap & Rework
6
Startup Low Yield

The Six Big Losses
1
Equipment Failure
2
Setup & Adjustments
3
Idling &
Minor Stoppages
4
Reduced Speed
5
Scrap & Rework
6
Startup Low Yield

The Six Big Losses
1
Equipment Failure
2
Setup & Adjustments
3
Idling &
Minor Stoppages
4
Reduced Speed
5
Scrap & Rework
6
Startup Low Yield

The Six Big Losses
1
Equipment Failure
2
Setup & Adjustments
3
Idling &
Minor Stoppages
4
Reduced Speed
5
Scrap & Rework
6
Startup Low Yield

The Six Big Losses
1
Equipment Failure
2
Setup & Adjustments
3
These are real killers – Idling &
Minor Stoppages
they combine insidiously
to trash production
4
performance - and yet Reduced Speed
tend to be ‘accepted’
5
Scrap & Rework
6
Startup Low Yield

The Six Big Losses
Computerised
Maintenance Management 1
(CMMS) helps with this Equipment Failure
2
Setup & Adjustments
3
These are real killers – Idling &
Minor Stoppages
they combine insidiously
to trash production
4
performance - and yet Reduced Speed
tend to be ‘accepted’
5
Scrap & Rework
6
Startup Low Yield

The Six Big Losses The OEE factors
1
Equipment Failure
Availability
2
Setup & Adjustments
3
Idling &
Minor Stoppages
Performance
Rate
4
Reduced Speed
5
Scrap & Rework
Quality Rate
6
Startup Low Yield

The OEE Calculation

OEE calculation
Overall Equipment Effectiveness =

Availability ² Performance Rate ² Quality Rate

OEE calculation
Consider an example
Availability = 70%
Performance Rate = 80%
Quality rate = 90%

OEE calculation
Consider an example
Availability = 70%
Quality rate = 90%
Then, OEE = 50%

OEE calculation
Consider an example
In reality this is towards

Availability = 70% the lower limit – OEE
Performance Rate = 80% performance is generally
in the range 40% to 80%
Quality rate = 90%
Then, OEE = 50%

OEE calculation
Consider an example
Availability = 70%
Quality rate = 90%
Then, OEE = 50%
This means that half the

built and maintained
factory isn’t contributing

OEE benchmark targets - World Class
Batch processes > 85%

Continuous discrete processes > 90%
Continuous processes > 95%
Best petrochem sites achieve 99.9%

OEE benchmark targets - World Class
Batch processes > 85%

Continuous discrete processes > 90%
Continuous processes > 95%
1st tier suppliers to major

Best petrochem
companies sites achieve
are obliged 99.9%
to
maintain a minimum OEE level
as a condition of contract

8 hour shift with half
OEE calculation example hour break = 7½
production hours
Equipment
Equipment 66‘Big
‘BigLosses’
Losses’ Calculation
Calculationof
ofthe
theOEE
OEE
1
Equipment Availability = calendar time - downtime ° 100
Failure/Shutdown calendar time
Calendar Time for example:
Availability = 460 mins - 60 mins ° 100 = 87%
2
460 mins
Production Setup &
Adjustment
Downtime Losses
Operating 3
Time Idling & Performance = theoretical cycle time ° produced amount ° 100
Minor Stoppages Rate operating time
for example:
Performance = 0.5 mins/unit ° 400 units ° 100 = 50%
4
Speed Losses
Rate 400 mins

Net Reduced Speed
Operating
Time
5
Defects in Production Quality Rate = produced amount - defect amount ° 100
produced amount
Defect Losses
for example:
Valuable Quality Rate = 400 units - 8 units ° 100 = 98%
6
Operating Reduced Yield
400 units
Time
OEE
Overall Equipment Effectiveness = Availability ² Performance Rate ² Quality Rate
for example:
0.87 ° 0.50 ° 0.98 ° 100 = 42.6%
Ref: Nakajima, 1984
The Hidden Factory

The Hidden Factory!
OEE can quickly reveal the size of the ‘hidden factory’…

The Hidden Factory!
OEE can quickly reveal the size of the ‘hidden factory’…
If the OEE is 50%,

half the ‘factory’
isn’t contributing…

The Hidden Factory!
…but still
consumes
resources

The Hidden Factory!
…which still consumes resources

The Hidden Factory!
…which still consumes resources

The Hidden Factory!

The Hidden Factory!
BIG burden!
NO production!

OEE and the Theory of Constraints
OEE must be applied to manufacturing

bottlenecks & pinchpoints – not in
general like with Kaizen
Define the hierarchy of critical
processes and bottlenecks and attack in
priority order
As with RCM, beware of ‘analysis
paralysis’ - just get on with it! – a bias
for action is needed

Attacking the Points of Constraint – the manufacturing bottlenecks &
pinch points - to maximise performance
Focused OEE projects
Achievable
manufacturing
performance
Performance
Manufacturing
performance Conventional continuous
gap improvement initiative
Present
manufacturing
performance Time
Do nothing
– the suicide scenario!

Achievable
manufacturing
performance
Performance
Present
manufacturing
performance Time
Top ranked
bottleneck
FIRST!
Achievable
manufacturing
performance
Performance
It’s not
Present rocket science.
manufacturing
performance Get going!
Time
Top ranked
bottleneck
FIRST!
<End>

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Overall Equipment Effectiveness

OEE - sweating manufacturing assets against the clock

© Shire Systems Limited

Overall Equipment Effectiveness & the

It’s purpose is to merely place things in context.

© Shire Systems Limited

Good data collection and analysis are key

© Shire Systems Limited

Good data collection and analysis are key

If you can’t put a number on

© Shire Systems Limited

Good data collection and analysis are key

…plus, if you’re not

© Shire Systems Limited

Manufacturing equipment must run

© Shire Systems Limited

Manufacturing equipment must run

The only rest is when

Manufacturing equipment must run

© Shire Systems Limited

Manufacturing equipment must run

© Shire Systems Limited

Manufacturing equipment must run

© Shire Systems Limited

© Shire Systems Limited

© Shire Systems Limited

Total quantity that COULD BE produced

© Shire Systems Limited

Total quantity that COULD BE produced

COULD = without losses due to:

© Shire Systems Limited

Total quantity that COULD BE produced

COULD = without losses due to:

© Shire Systems Limited

Total quantity that COULD BE produced

© Shire Systems Limited

© Shire Systems Limited

© Shire Systems Limited

© Shire Systems Limited

© Shire Systems Limited

© Shire Systems Limited

F1 workflow also used

© Shire Systems Limited

© Shire Systems Limited

© Shire Systems Limited

© Shire Systems Limited

© Shire Systems Limited

© Shire Systems Limited

© Shire Systems Limited

© Shire Systems Limited

Overall Equipment Effectiveness =

© Shire Systems Limited

© Shire Systems Limited

Then, OEE = 50%

© Shire Systems Limited

In reality this is towards

Then, OEE = 50%

© Shire Systems Limited