Professional Documents
Culture Documents
1
Need for KPIs to Optimize Performance
1. Key performance indicators
(KPIs) to measure, monitor,
and analyze
2. How to benchmark the
process performance using
KPIs
3. Capturing losses and
achieving optimal
production performance.
2
Overall Equipment Effectiveness (OEE) Six Key Metrics
The six big losses in equipment or machines
Target
Minimize
Minimize
Minimize
Minimize
Zero
Zero
Minimize
3
OEE improvement is about addressing losses from both ends of
the Pareto chart rather than just focusing on the big losses.
OEE Standard and Its Calculations
Availability loss
1. Loss due to scheduled and unscheduled breaks
2. Loss due to setup, changeover process, material.
Performance
3. Reduced speed due to machine, material, people
4. Loss due to idling and minor stops
Quality loss
5. Material loss due to quality issues like rejects during
startup, improper setup,
5
Availability
Availability is a ratio of time a machine is available to produce parts. “The time the
equipment is actual running versus the time it could have ideal running.”
Loading Time
Preventive
Per day Conversion Maintenance in Breakdown in Calculation in minutes Availability percentage
Hrs Minutes minutes
minutes
9
Performance (Net Operating Time )
The Performance rate is composed of the speed operating rate and the net operating
rate.
It represents the speed at which the machine runs (Actual) as a percentage of its
designed speed (Ideal) of the machine.
The formula for calculating Performance is
Performance = Actual Output X 100%
Ideal Output
Example
1. The Available Time is = 480 min scheduled − 60 min unscheduled downtime =
420 min.
2. The Ideal Rate for the part being produced is 40 Units/hour, and the machine
produces 242 Units during the shift.
3. Ideal Output 420 min/60min 7 hr X 40 = 280 units.
Performance = 242 Units X 100% = 86.4%
280 Units
These indices determine that whereas (100 – 86.4)% = 13.6 % of equipment time
10
Is lost due to maintenance, actual The performance rate for production is only 86%
Overall Equipment Effectiveness (OEE)
11
Quality (Valuable Operating Time)
3. How many products met the specifications?
The relationship between the number of units produced and the number of the
units produced that meet the specification is the ‘quality rate’.
The formula for calculating Quality is
Quality = Good Units X 100%
Units Produced
Example
1. A machine produces 230 Good Units during a shift.
2. Total units produced 242 Units
3. Therefore, the Quality metric is Quality
Quality = 230 Good Units X 100% = 95%
242 Units
These indices determine that whereas (100 – 95)% = 5% of equipment time is
lost due to
maintenance, actual The performance rate for production is only 95%
12
Overall Equipment Effectiveness (OEE)
1. Identify, measure,
and improve scrap
and rework.
2. Identify problem areas
and install error or
mistake proofing.
13
How do I calculate (OEE)?
OEE is a product of three separate but measurable components:
Availability, Performance, and Quality.
The formula for calculating OEE is
OEE = AVAILABILITY X PERFORMANCE X QUALITY
87.25% X 86.4% X 95% OEE= 71.61%
Overall Equipment Effectiveness
Bar Chart
1. OEE is an “improvement
driver.”
2. Understanding Loss of
Effectiveness
3. The Reliability Approach
4. Improving OEE on
5. Existing Machinery
14
Workshop Exercise
15
• 5 Working Days
• Three shifts of 8 hours each working day
• 30 minutes break each shift
5 days X 3 Shifts X 8 Hours = 120 Hours
15 X 30 Minutes = 450 minutes = 7.5 Hrs
60
Measurement for one week period
7 Breakdown = Totalling 21 hours
16 Set, average ½ hours each = 8 hrs
Availability = 120 Hrs – 7.5hrs – 21hrs – 8hrs = 83.5 hrs = 69.6 %
120hrs 120 hrs
Availability = 120 Hrs – 7.5hrs – 21hrs – 8hrs = 83.5 hrs = 69.6 %
120hrs 120 hrs
24
Class Exercise
Calculate the MTBF
Operating Time Days
117 245 405 545 117 128 160 140
Number of Stoppages
15 15 20 25Hr 40 30Hr 35
5 Hrs
Hrs Hrs Hrs s Hrs s Hrs
27
Mean Time To Repair (MTTR)
1. The measure of the ability of an item to be restored to a specified
condition when maintenance is performed by personnel having
specified skill levels, using prescribed procedures and resources, at
each prescribed level of maintenance and repair.
2. Maintainability is most commonly measured by mean time to
repair(MTTR)
“If it ain’t broke, don’t fix it” the paradigm of thoughts need to change 28
Class Exercise
Calculate the MTBF
Operating Time Days
117 245 405 545 117 128 160 140
Number of Stoppages
15 15 20 25Hr 40 30Hr 35
5 Hrs
Hrs Hrs Hrs s Hrs s Hrs