Ampla. Improving Plant Performance. Make the most of your energy SM

Transcription

1 Ampla Improving Plant Performance Make the most of your energy SM

2 Balanced Scorecard Approach Customer Finance In the early 1990s, Drs. Robert Kaplan and David Norton from the Harvard Business School developed a new approach to strategic business management called the balanced scorecard. Efficiency Effectiveness Process Vision and Strategy Growth Ampla performance gives visibility into the efficiency and effectiveness of an organization s processes by pulling data from all systems and presenting the balanced scorecard in near real-time. The balanced scorecard is a management system that enables organizations to clarify their vision and strategy and translate them into action. It provides feedback around both the internal business processes and external outcomes in order to continuously improve strategic performance and results. When fully deployed, the balanced scorecard transforms strategic planning from an academic exercise into the nerve center of an enterprise. The balanced scorecard suggests that management view the organization from these four perspectives and develop metrics, collect, and analyze data relative to each: Learning and growth Business process Customer Financial Ampla forms a vital part of a balanced scorecard approach, enabling businesses to thoroughly examine and improve their business processes. To be effective, performance measurements must be accurate, timely, actionable, and a strong indicator of achieving the over-arching business objectives. Improve machine and line efficiency Increase asset utilization Reduce downtime/rate loss Performance measures Increase plant reliability Increase energy efficiency Increase plant utilization Increase labor efficiency Increase production yield Improve variability control Improve production quality Reduce running costs Reduce operating costs Reduce waste/rejects Reduce re-work Business objectives Increase plant availability Increase maintenance efficiency Reduce maintenance costs Improve profitability 2

3 Using OEE as a key performance indicator (KPI) Overall equipment effectiveness (OEE) is a key benchmarking tool used to help companies focus on improving the performance and efficiency of their machinery and manufacturing process. OEE is a composite of three metrics including equipment availability, performance and quality. The derived OEE metric is a single, easily calculated, and communicated figure used as both a target and to communicate how well existing capacity is being utilized. OEE and its component metrics also indentify and quantify production losses from changeovers, quality, machine reliability, speed, and all of the six major production losses to both focus improvement projects and measure their success. OEE loss category Loss Examples Downtime loss Speed loss Quality loss Breakdowns Setup and adjustments Small stops Reduced speed Startup rejects Production rejects Tooling failures Unplanned maintenance General breakdowns/equipment failure Setup/changeover/warm-up time Material/operator shortages Major adjustments Obstructed product flow Misfeeds/component jams Delivery blocked Cleaning/checking Rough running Under nameplate or design capacity Equipment wear/operator inefficiency Scrap and re-work In-process damage or expiration Incorrect assembly 3

4 The OEE formula T Calendar Time A Scheduled Time Planned maintenance/ not required B Running Time Stopped/ breakdowns C Target Output D Actual Output Slow running/ rate loss E Good Output Reject/ quality loss OEE Availability Performance Rate Quality Rate Percentage of scheduled production time that equipment is actually available for production. Percentage of parts actually produced per time frame as compared to rated or expected parts produced per time frame Percentage of good, sellable parts out of total parts produced per time frame B A D C E D 4

5 The power of OEE improvement What does an OEE improvement of 10% mean? Below are two examples that show how 10% OEE improvement would impact an organization with revenue of $4 BN and $20 M. It is assumed that: All variable costs associated with manufacturing their product are contained in the cost of goods line. That base cost expenses between the before and after remain constant. Example 1 Before After Revenue $4 billion $4.4 billion Cost of goods 56% 56% Gross profit $1.76 billion $1.936 billion EBIT ($100 million) $76 million Example 2 Before After Revenue $20 million $22 million Cost of goods 59% 59% Gross profit $8.2 million $9.02 million EBIT $1 million $1.82 million As can be seen from the above examples, a small change in OEE can yield dramatic results in the bottom line. Schneider Electric has helped several world leading companies achieve OEE improvements including a leading diversified mining and fertilizer company in Australia, a metal production company in Africa, and a diversified US energy producer. The Australian mining and fertilizer company reported a 24% performance improvement in its underground railway haulage as part of its mine reliability program. At a metal production company s base metal refinery, savings in reduced downtime were made, an hour of which is equivalent to $200,000. World class OEE Worldwide studies indicate that the average OEE rate of manufacturing plants is 60%. However, a world class OEE is considered to be 85% or better. This means that in the average manufacturing plant, there is room for a 33% to 42% improvement in performance. OEE Factor Availability 90.0% Performance 95.0% Quality 99.9% Overall OEE 85.0% World Class 5

6 Improving OEE with Ampla performance Ampla performance is a tool that empowers teams to work together to harness the untapped potential in the plant and dramatically improve their OEE. It does this by offering unparalleled visibility into the production process through the capture and delivery of actionable real-time Information. This means decisions can be made faster with accurate and fact-based intelligence to improve plant productivity and efficiency to lower the cost of manufacturing. Ampla performance consists of three modules, which allow a business to analyze and optimize equipment performance: production, downtime, and metrics. OEE Availability Performance Quality Breakdowns Setup and adjustments Short stops Reduced rate Startup rejects Production rejects Downtime Production Combined, these three modules provide plant-centric information to improve production uptime and asset utilisation. This is achieved through the delivery of metrics or key performance indicators (KPIs), which allow management to easily track the performance of the assets. In addition to OEE, such metrics include: Yield Regulatory compliance Percentage of target Energy consumption per output unit Through the delivery of essential information to business managers in a context that is meaningful to them, all levels of the corporation are aligned with management strategies, ensuring improvement decisions are consistent with business goals. Downtime Production Metrics 6

7 Solutions and services SCADA and MES solutions Ampla is a high-quality, scalable suite of manufacturing execution system (MES) solutions, delivering real-time access to plant and business information allowing key personnel to analyze and act on opportunities to refine the workflow, maximize OEE, and correct problems before they impact supply chain, regulatory compliance, and production. Vijeo Citect SCADA is a world-leading industrial automation software product that provides maximum flexibility, proven reliability, scalability, and rapid installation. Unlike other industrial control systems, Vijeo Citect software is designed to cater to the needs of both small and large industrial enterprises using a single, integrated system while maintaining high performance and reliability. It is built to perform in a variety of uses, from computerized machine interfaces to remote monitoring of gas and water distribution systems and sophisticated production management. Vijeo Historian is a robust yet easy to use plant historian that allows users to leverage large volumes of plant data across their operations in real-time. Vijeo Historian provides a powerful, enterprise-wide reporting tool that collects, archives, and delivers meaningful reporting data from multiple, disparate systems enabling key personnel to make more effective decisions. Support and educational services Schneider Electric offers multi-level support services to maintain your plant performance. This includes providing you with access to product upgrades, the option of 24/7 support, and regular system performance reviews. Maximize the return on your investment with Schneider Electric Educational Services. Small, interactive groups are taken through teach and trial training by Schneider Electric professional, accredited trainers. Professional services Schneider Electric software products are supported by experienced professionals who provide implementation, systems integration, training, and post-sales support. 7

8 Talk to someone you trust As the global specialist in energy management, Schneider Electric helps our customers improve their business results through our industry-leading plant automation architecture, PlantStruxure. PlantStruxure incorporates process automation, plant supervision, real-time intelligence, and advanced manufacturing execution systems (MES) to improve the safety, efficiency, and productivity of our customers operations. As part of PlantStruxure, our integrated SCADA and MES software solution is complemented by professional services, customer support, and training, and is utilized in numerous industries including mining, metals, and mineral processing, food and beverage, manufacturing, facilities, water, gas, pipelines, power distribution, and pharmaceuticals. For more information about PlantStruxure, MES, SCADA, or other Schneider Electric solutions, contact your local Schneider Electric representative. Schneider Electric USA, Inc. Automation and Control Center of Excellence 8001 Knightdale Blvd. Knightdale, NC Tel: Document Number 8000BR1113 Schneider Electric Canada, Inc McLaughlin Road Mississauga ON L5R 1B8 Tel: This document has been printed on recycled paper January Schneider Electric. All Rights Reserved. Ampla, Vijeo, Citect, Schneider Electric and logo, and Make the most of your energy are trademarks or registered trademarks of Schneider Electric or its affiliates in the United States and other countries. Other trademarks used herein are the property of their respective owners