Oee

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
Its 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 cant put a number on it, you cant measure it and, if you cant measure it, you cant manage it!
OEE fundamentals
OEE is data driven
plus, if youre not keeping score, youre 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
The only rest is when the whistle blows

OEE fundamentals
Beware of twilight production and reworking
OEE fundamentals
An IDEAL! The world class benchmark is 6 Sigma
OEE fundamentals
An IDEAL! The world class benchmark is 6 Sigma
3.4 defects per million opportunities
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

ACTUAL quantity of good products produced Total quantity that COULD BE produced
OEE =
In the scheduled production time (loading time)
The OEE metric

OEE =
COULD = without losses due to:
The OEE metric

OEE =
In the scheduled production time (loading time) Resulting in LOW COULD = without losses due to:
Output Overall efficiency Yield First-time pass rate Quality OTIF delivery (on time & in full)
The OEE metric

OEE =
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
d h
4 Reduced Speed
5 Scrap & Rework
6 Startup Low Yield
The Six Big Losses

1 Equipment Failure
d h
4 Reduced Speed
5 Scrap & Rework
6 Startup Low Yield
The Six Big Losses

1 Equipment Failure
Single Minute Exchange of Die

d h
4 Reduced Speed
5 Scrap & Rework
6 Startup Low Yield
The Six Big Losses

1 Equipment Failure
Single Minute Exchange of Die

Benchmark :
d h
Formula 1 pit stop!
4 Reduced Speed
5 Scrap & Rework
F1 workflow also used to turnaround Jumbo jets and plan complex surgical procedures
6 Startup Low Yield
The Six Big Losses

1 Equipment Failure
4 Reduced Speed
5 Scrap & Rework
6 Startup Low Yield
The Six Big Losses

1 Equipment Failure
4 Reduced Speed
5 Scrap & Rework
6 Startup Low Yield
The Six Big Losses

1 Equipment Failure
4 Reduced Speed
5 Scrap & Rework
6 Startup Low Yield
The Six Big Losses

1 Equipment Failure
4 Reduced Speed
5 Scrap & Rework
6 Startup Low Yield
The Six Big Losses

1 Equipment Failure
These are real killers they combine insidiously to trash production performance - and yet tend to be accepted
4 Reduced Speed
5 Scrap & Rework
6 Startup Low Yield
The Six Big Losses

Computerised Maintenance Management (CMMS) helps with this
1 Equipment Failure
These are real killers they combine insidiously to trash production performance - and yet tend to be accepted
4 Reduced Speed
5 Scrap & Rework
6 Startup Low Yield
The Six Big Losses
The OEE factors

1 Equipment Failure
Availability
Performance Rate
4 Reduced Speed
5 Scrap & Rework
Quality Rate
6 Startup Low Yield
The OEE Calculation
OEE calculation
Overall Equipment Effectiveness = Availability Performance Rate Quality Rate
OEE calculation
Consider an example
Availability = 70% Performance Rate = 80% Quality rate = 90%
OEE calculation
Consider an example
Availability = 70% Performance Rate = 80% Quality rate = 90% Then, OEE
= 50%
OEE calculation
Consider an example
In reality this is towards the lower limit OEE performance is generally in the range 40% to 80%
= 50%
OEE calculation
Consider an example
= 50%
This means that half the built and maintained factory isnt 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% Best
1st tier suppliers to major petrochem sites achieve 99.9% companies are obliged to maintain a minimum OEE level as a condition of contract
OEE calculation example

Equipment Equipment 66Big Losses Big Losses
1 Equipment Failure/Shutdown 2 Production Setup & Adjustment 3 Idling & Minor Stoppages 4 Reduced Speed
8 hour shift with half hour break = 7 production hours
Calculation of the OEE Calculation of the OEE

Availability = calendar time - downtime 100 calendar time for example: Availability = 460 mins - 60 mins 100 = 87% 460 mins
Calendar Time
Operating Time
Downtime Losses
Net Operating Time

Defect Losses
Speed Losses
Performance = theoretical cycle time produced amount Rate operating time for example: Performance = 0.5 mins/unit 400 units 100 = 50% Rate 400 mins
100
5 Defects in Production
Valuable Operating Time
6 Reduced Yield
Quality Rate = produced amount - defect amount produced amount for example: Quality Rate = 400 units - 8 units 100 = 98% 400 units
100
OEE
Overall Equipment Effectiveness = Availability for example: 0.87 0.50 0.98 Ref: Nakajima, 1984 Performance Rate 100 = 42.6% Quality Rate
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 isnt 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
Manufacturing performance gap
Performance
Conventional continuous improvement initiative
Present manufacturing performance
Time
Do nothing the suicide scenario!

Performance
Time Top ranked bottleneck FIRST!


Performance
Its not rocket science. Time Get going!

Top ranked bottleneck FIRST!
<End>

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Overall Equipment Effectiveness

Shire Systems Limited

This slideshow will briefly cover

Shire Systems Limited

Shire Systems Limited

Shire Systems Limited

plus, if youre not keeping score, youre only practicing!

Shire Systems Limited

Shire Systems Limited

The only rest is when the whistle blows

Beware of twilight production and reworking

Shire Systems Limited

Shire Systems Limited

3.4 defects per million opportunities

Shire Systems Limited

The OEE Metric

Shire Systems Limited

The OEE metric

Shire Systems Limited

The OEE metric

In the scheduled production time (loading time)

Shire Systems Limited

The OEE metric

In the scheduled production time (loading time)

COULD = without losses due to:

Shire Systems Limited

The OEE metric

Shire Systems Limited

The OEE metric

In the scheduled production time (loading time)

OEE is calculated by measuring the Six Big Losses

Shire Systems Limited

The Six Big Losses

Shire Systems Limited

The Six Big Losses

2 Setup & Adjustments

3 Idling & Minor Stoppages

5 Scrap & Rework

6 Startup Low Yield

Shire Systems Limited

The Six Big Losses

2 Setup & Adjustments

3 Idling & Minor Stoppages

5 Scrap & Rework

6 Startup Low Yield

Shire Systems Limited

The Six Big Losses

2 Setup & Adjustments

3 Idling & Minor Stoppages

5 Scrap & Rework

6 Startup Low Yield

Shire Systems Limited

The Six Big Losses

Single Minute Exchange of Die

2 Setup & Adjustments

3 Idling & Minor Stoppages

5 Scrap & Rework

6 Startup Low Yield

Shire Systems Limited