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It takes the most common and important sources of manufacturing productivity loss, places them into three primary categories and distills them into metrics that provide an excellent gauge for measuring where you are - and how you can improve!
The Formula
OEE=EA*PR*QR EA- Improve through reducing the breakdown, set up, all kinds of stoppages PR- Improve through reducing the Speed losses, Stoppages,& Smaller failures QR-improve through eliminating the defects
Breakdown losses
Setup and adjustment losses
Rate efficiency (RE) : Actual average cycle time is slower than design cycle time because of jams, etc. Output is reduced because of jams Speed efficiency (SE) : Actual cycle time is slower than design cycle time machine output is reduced because it is running at reduced speed. QR - Refers to quality rate. Which is percentage of good parts out of total produced sometimes called "yield".
Availability
Availability = Available Time / Scheduled Time
Example: A given Work Center is scheduled to run for an 8 hour (480 minute) shift. The normal shift includes a scheduled 30 minute break when the Work Center is expected to be down. The Work Center experiences 60 minutes of unscheduled downtime. Scheduled Time = 480 min - 30 min break = 450 Min Available Time = 450 min Scheduled - 60 min Unscheduled Downtime = 390 Min Availability = 390 Avail Min / 450 Scheduled Min = 90%
Performance Rate
Performance = (Parts Produced * Ideal Cycle Time) / Available Time Example: A given Work Center is scheduled to run for an 8 hour (480 minute) shift with a 30 minute scheduled break. Available Time = 450 Min Sched - 60 Min Unsched Downtime = 390 Minutes The Standard Rate for the part being produced is 40 Units/Hour or 1.5 Minutes/Unit The Work Center produces 242 Total Units during the shift. Note: The basis is Total Units, not Good Units. The Performance metric does not penalize for Quality. Time to Produce Parts = 242 Units * 1.5 Minutes/Unit = 363 Minutes Performance = 363 Minutes / 390 Minutes = 93.0%
Quality Rate
Example: A given Work Center produces 230 Good Units during a shift. 242 Units were started in order to produce the 230 Good Units. Quality = 230 Good Units / 242 Units Started = 95.0%
OEE SIMPLIFIED
ANOTHER EXAMPLE
Production Data (Calculated Values from Production) Run Time 375 Total Production Minutes per Shift Run Time Break Times 60 Total Break Minutes per Shift Run Time Down Time 30 Total Downtime Minutes per Shift Down Time Setup Time 15 Total Setup Minutes per Shift Setup Time Total Count 360 Total Parts Produced per Shift Total Count Good Count 355 Good Parts Produced per Shift Bad Count Target Counter 400 Expected Parts per Shift Target Counter Process Data Formula Result Run Time Total Production Time of the Machine 375 Total Time Down Time + Run Time + Setup Time 420 Good Count Total Good Parts Produced on the Machine 355 OEE Variables Formula Result Availability Run Time / Total Time (375 / 420) 89.29% Performance Total Count / Target Counter (360 / 400) 90.00% Quality Good Count / Total Count (355 / 360) 98.61% Simple OEE Availability x Performance x Quality 79.24%
WEEK NO. 1 2 3
Average BOB
83.2 90.3
90.3 95
94 96
98 99
OEE TARGETS
TARGET OEE IN TPM > 85 % TARGET FOR EACH OF ABOVE THREE FACTORS > 95 %
OEE is essentially the ratio of Fully Productive Time to Planned Production Time
Target contd
This type of calculation makes OEE a severe test. For example, if all three contributing factors are 90.0%, the OEE would be 72.9%. In practice, the generally accepted World-Class goals for each factor are quite different from each other, as is shown in the table below. OEE Factor World Class Availability 90.0% Performance 95.0% Quality 99.9% OEE 85.0%
ROAD MAP
Six Easy Pieces OEE Factors introduces Availability, Performance, and Quality...the metrics use to measure plant's efficiency and effectiveness. It provide a visual overview of the key productivity losses that occur in the typical manufacturing environment. It start with Plant Operating Time and end up at Fully Productive Time, showing the sources of productivity loss that occur in between.
Contd..
Six Big Losses describes the most common causes for efficiency loss almost always found in today's manufacturing environment. Six root causes of loss are presented, each directly related to an OEE Factor. World Class OEE introduces the general OEE calculation and what is considered to be truly world class OEE. This is our goal!
Calculating OEE illustrates how the three OEE Factors are calculated and breaks them into the specific elements that are required to develop the OEE percentage. OEE FAQ presents commonly asked questions about OEE, with practical, real world answers and advice. Visual OEE makes immediate improvements attainable! By bringing realtime data directly to the plant floor, Visual OEE is the proactive path to continuous improvement!
WHAT IS IMPORTANT
It is very important to recognize that improving OEE is not the only objective. Take a look at the following data for two production shifts. OEE Factor Shift 1 Shift 2 Availability 90.0% 95.0% Performance 95.0% 95.0% Quality 99.5% 96.0% OEE 85.1% 86.6%
LOSSES??????
OEE Category Simple OEE Metric Loss Category Down Time Losses Availability 1. Equipment Failures 2. Tooling Damage 3. Unplanned Maintenance 4. Process Warm Up 5. Machine Changeovers 6. Material Shortage Speed Losses Performance 1. Product Misfeeds 2. Component Jams 3. Product Flow Stoppage 4. Level of Machine Operator Training 5. Equipment Age 6. Tooling Wear Quality Losses Quality 1. Tolerance Adjustments 2. Warm Up Process 3. Damage 4. Assembled Incorrectly 5. Rejects 6. Rework
6 BIG LOSSES
Breakdowns Tooling Failures Unplanned Maintenance General Breakdowns Equipment Failure There is flexibility on where to set the threshold between a Breakdown (Down Time Loss) and a Small Stop (Speed Loss). Down Time Loss
Setup and Adjustments Setup/Changeover Material Shortages Operator Shortages Major Adjustments
Warm-Up Time This loss is often addressed through setup time reduction programs
Misfeeds
Sensor Blocked Delivery Blocked Cleaning/Checking Typically only includes stops that are under five minutes and that do not require maintenance personnel.
Speed Loss
Operator Inefficiency Anything that keeps the process from running at its theoretical maximum speed (a.k.a. Ideal Run Rate or Nameplate Capacity).
Quality Loss
Incorrect Assembly Rejects during warm-up, startup or other early production. May be due to improper setup, warm-up period, et
Production Rejects Quality Loss Scrap Rework In-Process Damage In-Process Expiration
EQUIPMENT
6 BIG LOSSES
1. EQUIPMENT FAILURE
2. SET UPS AND ADJUSTMENT 3. IDLING AND STOPPAGES
OEE
AVAILABILITY
LOADING TIME 1. OPERATING TIME 2. NET OPERATING TIME 3. VALUABLE OPERATING TIME
PERFORMANCE EFIICIENCY
4. REDUCED SPEED
5. DEFECTS IN PROCESS 6. REDUCED YIELD RATE OF QUALITY PRODUCTS
B. SPEED LOSSES
3. Idling and minor stoppages 4. Reduced speed
C.DEFECT LOSSES
5. Defects in process 6. Reduced yield
EQUIPMENT LOSSES
1. 2. 3. 4. 5. 6.
BREAK DOWN LOSSES SETUP / ADJUSTMENT LOSSES MINOR STOPPAGE / IDLING LOSSES SPEED / CAPACITY LOSSES QUALITY DEFECT LOSSES REDUCED YIELD LOSSES
BREAKDOWN LOSSES
SPORADIC LOSSES
FUNCTION LOSS
CHRONIC LOSSES
FUNCTION REDUCTION
SPORADIC LOSSES
LARGE / ONE TIME COSEQUENCES NOTICED BY ALL SINGLE MAJOR CAUSE ARISE DUE TO NEGLECT OF CHRONIC LOSSES
CHRONIC LOSSES
CAUSES FOR CHRONIC BREAK DOWNS 1. ORGANIZATIONAL WEAK NESS 2. TECHNICAL PROBLEMS
WHY?
KOSHO - WILFUL HUMAN ACTIONS - OPERATOR NOT INVOLVED OR BOTHERED
MAINTENANCE
ALL EQUIPMENTS BREAK DOWN BREAK DOWNS CAN BE FIXED
ABOUT
OPERATIONS
MAINTENANCE
PHASE 2
LENGTHEN EQUIPMENT LIFE
Correct design weaknesses Eliminate chances of accidental breakdowns Restore visual deviations
PHASE4
PREDICT EQUIPMENT LIFE Use machine diagnostics techniques Analyse catastrophic failures using FMECA
PM ANALYSIS
PROBLEM PHYSICAL /PHENOMENA
CLEARANCE BETWEEN CYLINDER AND PISTON
CYLINDER ABRASION
MATERIAL
MEN
PROBLEM
ENVIRON MENT
ASSESSING 6 LOSSES
FINALLY.
FOLLOW TPM PRINCIPLES BE A PART OF SOLUTION FOLLOW 5S PREPARE DATA ANALYSE THE DATA TAKE CORRECTIVE ACTIONS BEFOREHAND
THE BEGINNING..