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Overall Equipment Effectiveness

OEE
December 8th 2003

Profile Solutions Ltd.


In Partnership with it’s Clients
Overall Equipment Effectiveness
• Today modern plants have a number of systems in place to help them
execute their production plans and schedules. These include Planning
and Scheduling Systems, Inventory Management, Control Systems,
Computer Aided Maintenance Systems, Logistic Systems ... and many
more. In many organisations these systems are manual paper-based
systems. Manually recording this data and calculating performances is
an onerous, time consuming and costly process where usually more
effort goes into collecting and processing the information as opposed to
analysing the data, identifying the problems and finding the solutions.

Profile Solutions Ltd.


In Partnership with it’s Clients
Overall Equipment Effectiveness
• Few automated systems provide a comprehensive view of production
line or process efficiency that allows users analyse a plant’s true
effectiveness to determine:
• The rate of quality rejects (or why they occur)
• Losses due to speed, short stops, speed imbalances on the line or
setup times
• Where in the line crucial bottlenecks are, and in which way they effect
the line
• What organizational problems exist
• What other typical, repetitive negative impact occurrences exist and
under what typical circumstances do they happen

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Overall Equipment Effectiveness
• As part of Total Productive Maintenance the Overall Equipment
Effectiveness (OEE) metric has become the accepted way of
measuring true plant performance. Recent studies show that the
worldwide average OEE rate in manufacturing plants is 60%. This
represents a poor return on manufacturing resources, plant/equipment
investment.

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Prime Causes of Production Losses
• A production line seldom operates at optimum speed. A myriad of reasons or
Negative Performance Impacts, mostly in combination, cause losses in
productivity and therefore loss of money. These include:
• Line Saturation
– There is no place for more output from the machine. For example, a paper machine
runs out of empty tambours.
• Equipment Failure
– Machines break down, wear out, are not used properly and so on. All ends up in lost
production time.
• Product changes
– During the change over from one product to another the machine settings must be
changed, breakdown may occur and speed must be reduced.
• Short Stops
– For example, a bottle falls down in a bottling machine and the operator picks it up.
These short but frequent events can be the reason for major time loss.

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Prime Causes of Production Losses
• Operator Inefficiency
– The operators like to have it nice and easy. They run with lower speed in order to
guarantee smooth operation.
• External reasons
– Sometimes, the production runs out of orders and the machines have to shut down. Or
there can be a failure in the electrical power network far away from the factory.
• Product Type
– Some products are more difficult to make. There are more breakdowns and quality
problems.
• Speed Losses
– For one reason or another, the speed of the machine is not optimum. In order to save
costs, someone has purchased cheap but poor quality raw material.
• Quality
– Although the machine is running, the products are not good enough for the customers.
These are the most expensive kinds of losses.
• Missing Material
– The raw material storage is empty and machines can not produce any more.

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Capturing Production Data
• Efficiency improvement projects can only be successful if we really
know which loss factors impact the most. This requires monitoring and
measuring every second of production time, because even small losses
can accumulate to be a major problem over time. Knowing the cause of
a negative performance impact helps to effect positive improvement.
Continuous monitoring can measure how successful improvement
efforts are and leads to the next level of improvements. This is a
continuous cycle.
• Example
– Line Speed Fluctuations may be noted by eye, but they are seldom
measured accurately. As a result there is no notion of the importance of
these accumulated losses.
– With accurate measurement you may discover that speed losses actually
add up to 11% of overall performance, 70% of which occur on a certain
product type and that this happens mostly on one critical machine in the
line.

Profile Solutions Ltd.


In Partnership with it’s Clients
Overall Equipment Effectiveness
• OEE is the key performance indicator for production lines and machines. It is an
easy and understandable way to classify and calculate all the losses in
production.
• Availability factor (A)
– Availability gives the actual running time in percentage. For example, if during one shift
(8 hrs) a machine has been running for 6.5 hrs and it was standing still for 1.5 hrs
because of repairs, then
– A = 81.25% (= 6.5 hrs / 8 hrs)
• Performance factor (P)
– When the machine was running, the actual speed was below the nominal speed. Say,
the optimal speed for the product is 12 units/min but machine was making only 10.5
units/min, then
– P= 87.5% (=10.5/12)
• Quality factor (Q)
– When some of the products have been rejected, this is quality loss. Out of the 600
units produced in an hour, 35 were not according to the specification, then
– Q = 94.17% (=(600-35)/600)
• Planning factor (Pf)
– There are scheduled shutdowns in every production line for several reasons. Machines
need annual maintenance, teams allocated to other machines, or there are not enough
orders. Say that the line is down for vacations 3 weeks in the summer, then
– Pf = 94.1% (=(356 - 21) / 356)

Profile Solutions Ltd.


In Partnership with it’s Clients
Overall Equipment Effectiveness
• OEE is a simple calculation:
– OEE = A * P * Q
– In our example:
• OEE = 81.25% * 87.5% * 94.17% = 66.9%
• Total Productivity:
– Total Productivity can also be calculated:
– Pr = OEE * PF
– In our example:
– Pr = 66.9% * 94.1% = 62.9%

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Improving OEE
• There are many ways to raise the OEE. Sometimes operators need more
training, bottleneck machines require technical improvements, production
schedules require fine tuning, products redesigned, operating instructions must
be reviewed and so on.
• Some of these improvements may require substantial investments. With good
OEE measurement it is possible to select the project with quickest returns.
• Accurate OEE measurement makes it possible to follow up the outcomes of the
development projects and investments. The effect on the bottom line:
– Cost reduction
– Increased output
– Extending line investments
• Other benefits include:
– Accurate production planning
– Understanding the production process
– Cooperation and team work

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OPERA Real-time Information System
• GPN Partners are specialist software developers and integrators of
real-time information systems that automatically capture critical
manufacturing process, production and environmental data. Data from
these systems is used to improve production/process efficiency and
decision making.
• GPN Partners have developed the OPERA range of real-time
information products which are profitably used in the following
application areas:
– Machine Downtime and Efficiency Monitoring
– Plant Utilisation, Maintenance and Efficiency Calculation (OEE)
– Process Monitoring and Control
– Building Management and Environmental Monitoring
– Energy Management and Control Systems
• GPN use OPERA with their operational improvement skills to leverage
business benefits

Profile Solutions Ltd.


In Partnership with it’s Clients
OPERA Real-time Information System
• OPERA can be
– interfaced to PLCs
– Combined with data acquisition sensors to measure
• Temperature
• Pressure
• Humidity
• Flow
• Speed
• Voltages etc.
– It can also be interfaced to packaging and filling machinery to count
• Good parts
• Bad parts
• Downtime or rejects
– Support for open standards such as OPC, allows OPERA connect to other
software systems such as SCADA and ERP

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In Partnership with it’s Clients
OPERA GPN OEE
• OPERA can provide you with all the relevant data required to make
most of your production/process decisions in real-time.
– Process calculators help interpret and transform raw machine signals in a
way that is meaningful to the client
– Existing systems can be automatically challenged with variances and
alarms activated and forwarded to the operator and/or escalated to
management by email, pager or SMS
– Powerful data historians allow for centralisation of all data in an enterprise
database and for detailed analysis of data by shift, batch, product, operator
etc.
– Flexible processors allow you to collect data to suit your own shift patterns.
OPERA comes in a range of variants providing you with an upgrade path as
your requirements expand.
• GPN SME’s can teach & help you to understand this data and
maximise the business benefit from this information.

Profile Solutions Ltd.


In Partnership with it’s Clients
OPERA GPN OEE
• OPERA aids companies who are implementing Overall Equipment Effectiveness
(OEE) programmes in their strive for World Class Manufacturing levels.
– OPERA includes OEE calculation and report templates that can be customised to your
requirements.
• We also carry out OPERA OEE implementations, continuous improvement
programmes and TPM training. GPN and our partners have broad experience in
the pharmaceutical and other manufacturing sectors. We have helped
companies utilising OEE software to achieve
– 1% increase in OEE on average yields
– 2% increase in capacity and can yield in excess of 4%
– 1% reduction in unit cost
• With over 80 cumulative years experience in the pharma and biopharma
industries we have the expertise and application experience to provide a
turnkey solution.
• GPN software partners are ISO9001/TickIT certified and are Microsoft Gold
Certified Partner demonstrating our commitment to best of breed technologies
and quality processes.

Profile Solutions Ltd.


In Partnership with it’s Clients
OPERA GPN OEE

The following slides contain some sample images of these


OEE systems

Profile Solutions Ltd.


In Partnership with it’s Clients
The main data
entry screen
provides the focal
point for capturing
data
Product
Information can be
captured from the
site MRP/ERP
system by keying
in the schedule
number (order
number)
All operational
data on events that
take place are
captured
automatically
or manually
dependent upon
the requirements
A notepad is
included to
provide detailed
explanations
downtime events.
Records are
created by shift
and/or by new
schedule
Number (order
number)

Profile Solutions Ltd.


In Partnership with it’s Clients Info@globalpharmanetworks.com
OEE calculations and the detail calculations are displayed on screen
These can be viewed by individual record and by cumulative totals for a range of
viewed records.

Profile Solutions Ltd.


In Partnership with it’s Clients Info@globalpharmanetworks.com
Analysis starts with top level downtime review for each individual record by
equipment and by Downtime header.

This screen also provides


cumulative downtime by shop
order by equipment and by
category

Profile Solutions Ltd.


In Partnership with it’s Clients Info@globalpharmanetworks.com
Full drill down capability is a feature of the system
Here downtime details are ‘Drilled’ into from the previous screen

Each piece of
equipment has a
subset of downtime
codes that can be
viewed by individual
record by cumulative
downtime, by shop
order or by
equipment

Profile Solutions Ltd.


In Partnership with it’s Clients Info@globalpharmanetworks.com
Analysis of downtime events
provides data to support root
cause analysis and to support
continuous improvement
This allows the CI teams to
focus on the areas of biggest
benefit

Profile Solutions Ltd.


In Partnership with it’s Clients Info@globalpharmanetworks.com
An EIS (executive information
Summary) provides an
overview by workcentre or by
plant

Profile Solutions Ltd.


In Partnership with it’s Clients Info@globalpharmanetworks.com
The system can display the
key performance for each
shift so that comparisons can
be made across the 24 hour
day.
This allows root cause
analysis to be performed and
the key problem areas to be
focused on
As part of this the system
provides graphic details of
schedule performance

Profile Solutions Ltd.


In Partnership with it’s Clients Info@globalpharmanetworks.com
The system can provide analysis
of the cumulative output for the
workcentre and can compare this
with the expected planned output
to provide cumulative variance
information.
This information can be broken
down by shift and provide details
of the major problems causing
downtime.
In addition the system provides a
graphic display of the output
values for ease of use

Profile Solutions Ltd.


In Partnership with it’s Clients Info@globalpharmanetworks.com
Using this screen we can analyse the durations of
changeovers.
The data can be displayed by schedule
number (order no) and the average, the shortest and
the longest changeovers can be easily identified.
It will also display the total number of changeovers
in the period and analyse these by the changeover
definition

Profile Solutions Ltd.


In Partnership with it’s Clients Info@globalpharmanetworks.com
For more information on OEE or our other
services

Email us at info@globalpharmanetworks.com
Or visit our website www.globalpharmanetworks.com

Profile Solutions Ltd.


In Partnership with it’s Clients

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