© April 2018| IJIRT | Volume 4 Issue 11 | ISSN: 2349-6002

OEE METHOD FOR SPACEWOOD FURNISHERS

LTD.- A case study

Prof. Satish G. Sonwane1, Warad S. Degwekar2, Yashwant V. Mohitkar3 and Siddhesh R. Deshpande4
1
Assistant Professor, Department of Mechanical Engineering, Dr. Babasaheb Ambedkar College of
Engineering & Research, Nagpur.
2,3,4
Student, Department of Mechanical Engineering, Dr. Babasaheb Ambedkar College of Engineering &
Research, Nagpur.

Abstract—The work presented aims at the application
of time study at Spacewood Furnishers Ltd. with focus
on crucial side of productivity improvement with the
proper use of work and time-study techniques in
manufacturing industry. The improvement in the
productivity in the company is found out by the
recording efficiency of the machine. In this study the
productivity of the machine is enhanced by the use of
OEE toll i.e. Overall Equipment Efficiency tool. This
OEE method is used to enhance and increase the
productivity of the process as well as machines and
workers. In this case study we have used OEE on CNC
and Edge Binder machines to find out the bottleneck
and hidden losses. While exploring it was found that
there was not a single process to find the efficiency of
the workers as well as machines and because of this the
major loss in efficiency was constantly taking place in
the production. To avoid the losses and to find out the
exact efficiency of machines and operators, exact
number of output for the given input, time taken by the
machine and worker to complete the job, such things
have been found out by the method adopted. The data
was recorded and generated on the excel sheet. With the
help of excel sheet tools all the efficiencies of the
machines and workers have been found out exactly.
This study helped in identifying the problems and
suggest appropriate system to improve productivity.
I. INTRODUCTION
There are many factors that influence the productivity
of a manufacturing organization. The most widely
tackled issue is how to improve efficiency and
productivity. Work and time study technique is one
of the productivity improvement techniques used in
many manufacturing companies. Work and time
study is a work measurement technique for recording
the times of performing a certain specific job [18]. In
this paper the time and work study has been done by
calculated the generation of excel sheet in which
various data of the machines and worker and their
output has been record and through which the
efficiency of the machine as well as the rating of the
worker has been found out.
With a sprawling 15-acre manufacturing unit in
Nagpur, Spacewood’s integrated facility brings home
autonomous technology, viz. short cycle lamination,
panel processing, membrane pressing, press shop,
powder coating, etc. Spacewood upholds global
standards with state-of-the-art European machinery
operating over the most modern manufacturing
processes. BIFMA compliant test laboratory fulfills
observance with international practices.
Independently functioning with in-house design and
product development specialists, Spacewood creates
solutions that are future ready, sustainable and world
class. Spacewood manufactures modular kitchens,
home furniture and office furniture.
The project was taken up at Spacewood plant-4,
Nagpur. We worked on the project using the concept
of overall equipment efficiency (OEE). It
demonstrates the method to increase the efficiency of
machines and operators. The main task of the project
is to enhance the efficiency of machines and operator
by developing a tool to monitor the cumulative
output (performance) of machines and operators.
Manufacturing sector has been experiencing
tremendous challenges in ensuring all products are
delivered to customers on time. in calculating OEE
you have to take into consideration machines as
operating in a link and complex environment [2].
This method will help industry in finding out the
efficiency of the specific machines on specific day or
a one-month efficiency of the machine. By this data
the machines or operator with less efficiency can be
improved. The importance of maintenance functions

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 © April 2018| IJIRT | Volume 4 Issue 11 | ISSN: 2349-6002
has increased due to its role in keeping and
improving the availability, product quantity, safety
requirements, as maintenance costs constitute an
important part of the operating budget of
manufacturing firms [3]. The main losses that were
causing the reduction of productivity are material not
available on time, breakdown of machine due to lack
of maintenance and power off. The project has been
addressed in three aspects; namely Availability,
Performance and Quality which quantify OEE of a
machine [20].
After developing tool to monitor the data, analysis of
the data is carried out to identify different types of
losses occur during the production. Once the types of
losses are identified, detail study of losses is carried
to increase the output. When the losses are examined
and modifications are done in production procedure
the efficiency i.e. output of machines and operators
appears to be increased. We generated a report in
Microsoft Excel and documented the output data in it
of one month i.e. January. We even came to know the
types of losses occurring in the plant. It gives us the
exact efficiency of machines and operators. Due to
this we are able to monitor the output of each
machine and operator in each shift. It makes decision
making easy as the cumulative output is available.
We are able to identify the underutilized machine by
this report. Hence, we try to suggest optimum
solution to increase the efficiency.
Productivity is the ratio of output to input [9].
Productivity improvement is one of the core
strategies towards manufacturing excellence and it
also is necessary to achieve good financial and
operational performance. To increase productivity,
two important function of productivity management
are: installation of most effective method of
performing the operation and the control of
resources –mainly plant and labor required in
carrying out the operation. When higher productivity
is expected the machine tool which are converting
raw state of the product into finish goods, must be
reliable. Reliability includes availability of the
machines with least down time [12].
In the generation of agile manufacturing, the
machines and its functions are also becoming
complex. OEE of a machine plays an important role
in present scenario where delivery and quality are of
prime importance to customer. The Paper reports a
IJIRT 145890 INTERNATIONAL JOURNAL OF INNOVATIVE RESEARCH IN TECHNOLOGY
case study for improving OEE with help of TPM and
5S techniques using a systematic approach. Nakajima
(1998) identified and classified the main losses
related to availability, in response to maintenance
problems encountered in manufacturing environment,
the Japanese developed and introduced the concept of
Total Productive Maintenance (TPM), in 1971[10,15].
He established the “six big losses”: (1) poor
productivity and lost yield due to poor quality, (2)
setup and adjustment for product mix change, (3)
production losses when temporary malfunctions
occur, (4) differences in equipment design speed and
actual operating speed, (5) defects caused by
malfunctioning equipment, and (6) start up and yield
losses at the early stage of production [7, 11, 14, 17].
The present aimed at minimizing the breakdowns,
increasing performance and quality rate of machine
thus improving the effectiveness.
Starting with the question that in calculating OEE
you have to take into consideration machines as
operating in a link and complex environment. So, we
analyze almost a model for the OEE calculation that
lets a wider approach to the performance of the whole
factory. The aim of the paper is to increase the
machine efficiency with the help of cumulative
recordings of the workers. There work has to be
monitored individually for which an excel sheet of
their work has been generated. Work has to be
monitored so that the individual losses can be find
out easily of workers as well as machines. This is
done by OEE method by generating excel sheet.
Definition of TPM includes, its objective is creating a
preventive maintenance (PM) system to extend the
machines’ or equipment’s’ useful life. Its objective is
optimizing the overall effectiveness of machines or
equipment’s can be applied in several departments
such as engineering, production, and maintenance
department [20]. The goal of TPM is to achieve zero
breakdown and zero defects related to equipment.
The consequence of reducing breakdowns and
defects is improvement on production rate, reduction
in costs, reduction in inventory and eventually,
increase in labour productivity [15]. The success of
the system depends largely on how accurately a
problem is defined, thoroughly investigated and
properly carried out through a choice of solution. In
the industries huge losses/wastage occur in the
manufacturing shop floor. This waste is due to
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operators, maintenance personal, process, tooling
problems and non-availability of components in time
etc. Other forms of waste include idle machines, idle
manpower, break down machine, rejected parts etc
are all examples of waste [5].
Here, it is mostly concentrated with what the user
needs rather than what he wants. In the present
system things are done manually. The user needs
certain application to monitor the efficiency of
machine and operator properly. New system is
needed because the efficiency of the plant was less
and it was not possible to monitor the cumulative
efficiency of machines and operators and is very time
consuming and difficult to monitor the day to day
efficiency. Thus, we developed the new system in
which we can monitor the cumulative efficiency of
machines and operators.
In company we have to monitor the monthly
performance of machines and operators to increase
the productivity. In the present system we can
monitor the performance of machine of limited to a
day only and even there is no such method to know
operator’s performance.
It is not possible to monitor the cumulative
performance of machines and operators. Presently,
we can monitor the output of the machines from the
output slip generated by the operators which is
limited to a shift.
The present system is complicated to use and has
some limitations. Following are the limitations-
 Cumulative monitoring is not possible
 Sometimes manual calculation results into errors
 Collective data is not available
 It is time consuming process
New system is needed and it has to be developed
because existing system is very time consuming and
data retrieval is difficult. Thus, we have to develop a
new system to eliminate limitations and problems in
the existing system.
II. METHDOLOGY
As we began our project we did a detail study of the
plant we observed that the efficiency of machines
was less. As there was no tool with them to study the
cumulative efficiency of machines we generated
report format in Microsoft excel due to which it was
possible to observe cumulative data [11]. As OEE is
IJIRT 145890 INTERNATIONAL JOURNAL OF INNOVATIVE RESEARCH IN TECHNOLOGY
an important performance measure for effectiveness
of any equipment, careful analysis is required to
know the effect of various components. An excel
sheet can be used as simplest tool to measure and
monitor true data collection [12].
We identified various losses-
o Machine setting
o Machine inspection time
o No Manpower
o Power loss
o Material Not available
o Machine Breakdown
Out of these power failures, materials N/A, machine
break down losses were considered in the efficiency.
We generated specific codes for machine and
operators. We changed the excel format of report
document of January and did calculations with the
help of tools available in it to observe the efficiencies
of machines and operators. We also gave the rating to
the efficiencies of operators to know their
performance.
The equipment efficiency is affected by the
surrounding environment the OEE measure also
depend on the actions of operators as well as the
production planning and control polices of the
company [11].
OEE is a "best practice" way to monitor and improve
the effectiveness of your manufacturing processes.
OEE is simple and practical. 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. OEE is essentially the ratio of
Fully Productive Time to Planned Production Time.
In practice, however, OEE is calculated as the
product of Availability, Performance and
Quality[6,9.5,17] OEE is frequently used as a key
metric in TPM (Total Productive Maintenance).’TPM
aims to increase the availability/effectiveness of
existing equipment in a given situation, through the
effort of minimizing input (improving and
maintaining equipment at optimal level to reduce its
life cycle cost) and the investment in human
resources, which results in better hardware utilization
[3],and Lean Manufacturing programs and gives you
a consistent way to measure the effectiveness of TPM
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and other initiatives by providing an overall 18

framework for measuring production efficiency.
Machines on which project was carried out and their 3- 1142 h11 2 8 xxx MEB 900

functions- 1- 1

 CNC machines (5 machines) 20

 Automatic and manual edge binders (6 machines) 18

2- 1128 h9 2 8 xxx Kr-79 220

1- 0
20
18

Outp Ma Bre Pow Inp Outp Efficie Rati

ut t. ak er ut ut ncy ng
N/a dow off
n (in (in (in (in
(in min min) min min)
mi ) )
n)

450 10 440 460.4 104.65 2

7

450 20 440 460.4 109.20 2

Figure 1: Plant layout of section-4 7

Data Directory: - 1840 30 400 359.6 97.41 2

Da Emplo Mach Shi Hou Emplo Mach Tar
4
te yee ine ft rs yee ine get
2000 25 430 390.9 90.91 1
Code Code Name Name
1

2- 859 h17 2 8 xxx BHX 430

278 30 430 132.8 37.87 0
1-
2
20
18 1850 45 440 361.5 94.56 1
9
2- 855 h17 1 8 xxx BHX 430
1- Figure 2: sample recordings of data in January month
20
(NOTE: -the above two tables are combined. Due to
18
lack of space they are divided into two.)
2- 1125 h8 3 8 xxx kl-78 204
The above table shows,
1- 7
 The date on which certain worker did the
20
specific job.
18
 The employee code, machine code and name of
the machine on which the worker was working.
3- 1431 h8 2 8 xxx kl-78 220  Efficiency of the worker and his rating according
1- 0 to it.
20

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 As we can see the material not available time and

breakdown time is more in most of cases so to
reduce them maintenance must be done properly.
 Use of preventive maintenance is very beneficial
and recommended here rather than breakdown
maintenance on which industry is currently
working.

III. CALCULATIONS
So, for calculation let us take example from the table
above
On 2nd Jan 2018, worker (Code No. =855) worked in
1st shift for 8 hours
He worked on BHX (h17),
Target to complete = 430 Output = 450
Material not available time = 20 minutes
Breakdown time= 0 Power Off time = 0
Input time (in min) = 440 Output time (in min) =
460.47
Efficiency =
Graphical representation of machine’s output to input
(target): -

From the above calculation we found out the

efficiency of worker is 109.20
And Rating is 2.
The rating of the worker is also found out from this.
Efficiency <90 then rating= 0
Efficiency > 90 then rating = 1
Efficiency > 95 then rating = 2
Similarly, for all the employees of CNC and Edge
binder the report of one month has been made on
Excel sheet to find out the efficiency of workers and
machines.
Efficiency calculation of CNC and Edge Binder
machine:

IV. RESULTS AND DISCUSSIONS

From the given table we can conclude the following
results: -
1. This whole data covers the work done by the
worker on specific machine, in specific shift, for
given hours.

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2. It also covers target given to the worker and the
output by the worker in numbers and also in time
(in min).
3. With the help of this data we can calculate the
average efficiency of worker.
4. We can also find on which day workers were
operating specific machines and also their output.
5. It also calculates the average efficiency of
machine.
6. Productivity of the machine as well as worker
can be calculated by this data.
7. The red box in the table indicates that efficiency
of that machine is quite low and some
improvements has to be done in that area.
8. These procedures also tell about the breakdown
time, material not available time, power off time
and according to it maintenance scheduling can
be done.
9. All the data is calculated in minutes.
10. With the above all mention points we can easily
find out efficiency of machine also whether
machine is working according to its efficiency or
not.
11. The data is calculated by Pivot table in Excel
sheet which shows the following details like
machine code, employee code etc which is given
in the work done of this problem.
12. There is also graphical representation table in
which you can see the input given and also
output through which we can calculate the above
things.
13. From this data we can also manage the wages of
the workers as you can give the rating to the
works.
14. Also, incentives for the workers can be decided
by this data from their ratings.
V. CONCLUSION
 We generated a report in Microsoft Excel and
documented the output data in it of one month-
January.
 We even came to know the types of losses
occurring in the plant. It gives us the exact
efficiency of machines and operators.
 Due to this we are able to monitor the output of
each machine and operator in each shift. It
makes decision making easy as the cumulative
output is available.
IJIRT 145890 INTERNATIONAL JOURNAL OF INNOVATIVE RESEARCH IN TECHNOLOGY
 We are able to identify the underutilized
machine by this report. Hence, we try to suggest
optimum solution to increase the efficiency.
 There are only some limitations to this data
which are,
1. This project has constraint up to
manufacturing industries.
2. This process is useful for batch or mass
production.
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[1] Harsha G. Hegde, N. S. Mahesh, Kishan
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[2] Raffaele Iannone and Maria Elena Nenni,’
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[3] ‘OEE Improvement by TPM Implementation:
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VivekPrabhu, R. Karthick, Dr.G. Senthil

Kumar.
[13] Mr. Sujay Biswas, Dr. Abhijit Chakraborty &
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[20] ‘Performance Acceleration on Production
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