The OEE Challenge. How productive are you? It takes a German worker four days to produce what we make in five

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1 The OEE Challenge How productive are you? It takes a German worker four days to produce what we make in five Philip Hammond, Chancellor of the Exchequer

2 The OEE Challenge How productive are you? There are generally two ways to improve productivity. One is the purchase of better machinery. The second involves a new process, which allows a worker to increase the speed or quality of what they are doing.

3 The OEE Challenge How productive are you? Many companies routinely hit capacity constraints and immediately consider adding overtime for existing workers, hiring workers for a new shift, or buying a new line. Relatively few companies have made the more modest investment that is required to optimise the performance of their existing lines.

4 Team GB cyclists, under the leadership of Sir David Brailsford, knew the end goal of training and competition was to win races on the national and international stage.

5 Instead of looking at the race as a whole, the team broke it down into its component parts ranging from the aerodynamics of the equipment, to dust that gathered on the bike, adversely effecting maintenance, and set about making marginal gains they measured everything

6 The small cumulative improvements across a host of areas added up to a significant improvement overall, and you can t argue with their medal tally over the years.

7 If you want to improve productivity, then you need to know what your current performance level is, and where improvements in the production cycle can be made.

8 OEE (Overall Equipment Effectiveness), is a measurement that can help you determine, how effective your manufacturing operations are, and where improvements can be made. It is a calculation involving the components of Availability, Performance and Quality, each measured separately, so losses can be identified and bottlenecks minimised. Availability x Performance x Quality=OEE

9 Example In order to have a good understanding of OEE as a concept, it is helpful to look at an example. Consider a beverage plant with the following production schedule for the bottling area. They have chosen fifteen shifts to measure. This data gives you all of the information you need to calculate OEE, which you can see on the following page. Item Days of Operation Planned 5 Number of Shifts Planned 15 Data Total Available Time (minutes) 7,200 Total Planned Shutdown (minutes) 2,400 Downtime (minutes) 1,250 Theoretical (Ideal) Rate (e.g. bottles per minute) 600 Total Bottles Produced 1,656,502 Rejected Bottles 1,207

10 The Breakdown and OEE Calculation: Example OEE 57%

11 Example From the example, you can see that the plant is operating at 57% OEE. If downtime and short-lived stoppages were reduced by 1% or 12.5 minutes, the same factory would be able to produce 5832 more bottles during the same five-day period. If downtime and short-lived stoppages were reduced by 10% or 125 minutes, they would be able to produce 58,327 more bottles during the same five-day period (assuming the same effective performance).

12 Example If the factory was to reduce downtime and short-lived stoppages by 10%, and the wholesale price of each bottle was 0.56, during each five-day period, the bottling area could produce 32, more saleable product per week. If the bottling area is operating 260 days during the year, the extra production would be worth 1,698, without extra shifts or overtime.

13 By drilling down into the data you have gathered, you can spot opportunities and begin to make small incremental improvements. For example, maybe the same machine broke down several times and accounted for 25% of the unplanned downtime, or maybe labels were not available for 5% of the unplanned downtime.

14 If the example has inspired you, start measuring OEE and implementing improvements. If you are new to OEE as a KPI and don t have a system which measures productivity in real-time, you can still calculate your OEE in a few easy steps.

15 Before we begin Download the OEE Calculator. Download your OEE Calculator Just like in the example, you need to have access to the data listed in in the chart on the right. Item Data Days of Operation Planned Number of Shifts Planned Total Available Time (minutes) Total Planned Shutdown (minutes) Downtime (minutes) Theoretical (Ideal) Rate (e.g. bottles per minute) Total Product Produced Rejected Product If you don t have this data to hand, just follow the steps on the next few slides.

16 Download your OEE Calculator Step One: The Line Select a line, work cell, or machine to perform this calculation on. Select one that you will have accurate production numbers for.

17 Download your OEE Calculator Step Two: Time Period Select a period of time that is long enough to account for any periodic availability related downtimes that will occur. For instance, if your line runs continuously for two days, and then must be stopped for a CIP (Clean-in-Place; sanitation) for four hours every third day, run your calculation over that three-day period.

18 Step Three: Operating Time Download your OEE Calculator For the time period that you are measuring (total available time), you need to subtract the number of minutes that were planned shutdown (e.g. if the line was not scheduled to run), this gives you your planned production time. Then you need to record all other downtime (short stoppages, changeovers, cleaning, maintenance) and stoppages from within the planned production time, this gives you your operating time.

19 Step Four: Theoretical Rate Download your OEE Calculator You will need to know the real theoretical rate of the line based on the equipment specifications on the line being measured. This is the rate the equipment was to run at when purchased, NOT the rate that operators may currently be running the equipment at. This information is gathered from equipment manuals, not calculated or gathered from how your line is performing on its best day. If you are measuring a line that has several machines operating on it with differing theoretical rates, the number you should use is the lowest theoretical rate. This can be in any units such as bottles per minute, units per minute, feet per minute etc.

20 Download your OEE Calculator Step Five: Good Product Produced You will need to know the quantity of good product produced vs total product produced for the whole time period that you are measuring. Be consistent with the units you have used for your theoretical rate, for example bottles per minute, units per minute, feet per minute etc.

21 Now you have your data, complete the calculator information Download your OEE Calculator This information will automatically populate This is your OEE Score!

22 Now that you have calculated your OEE score, why not play about with the numbers? Could you reduce downtime by 10%, improve quality by 5%, or are your machines set to run lower than their theoretical rate? How much more could you produce AND SELL?

23 What Opportunities for improvement are you missing? Although it is a start measuring OEE manually, it is time consuming, and by the time you have your data for calculation, the opportunity for improvement has passed. If you had this information, in realtime and at your fingertips, you could continually approve your operations. The Return on Investment for TrakSYS Performance Management is within six months. Find out more by downloading the brochure Download the Brochure

24 Manufacturing Improvement Solutions If like us, you would prefer to avoid unnecessary pitfalls and follow a path which leads to measurable and sustainable improvement, then please contact us. We are here to help you. enquiries@cimlogic.co.uk Cimlogic Cimlogic