Only focused on production itself, not the infrastructure to support the production

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1 A Self Assessment Tool For Implementing Overall Equipment Effectiveness Systems A strategic advantage for any manufacturing enterprise can be found within its data. Data can enable you to become an information-driven plant or facility. Furthermore, obtaining data and applying that data for the optimization of the company will further your competitive edge. The focus is identifying and delivering the right data, at the right time, to the right person. To do this, you must understand what data is required and then select the appropriate technology to provide that information in a functional matter. Common reasons why manufacturers do not have a plant-wide information and reporting system developed: More project focused; not a corporate directive Underestimate potential benefits Not clear on the financial implications and ROI that can be realized Only focused on production itself, not the infrastructure to support the production No time to plan Plan to implement an ERP or MES system in the near future and want to wait Have already implemented an ERP system and feel that it is enough Not sure who is responsible, IT or Engineering? General benefits resulting from implementing a plant-wide information and reporting system: Increase plant quality and throughput or yield A reporting system that can track information across multiple years to reduce warranty and recall issues A clearer focus on improving the performance of machinery and equipment already in the plant Avoid making inappropriate purchases Use definitive data to verify how an asset, machine, cell, line or area is truly performing Increase regulatory compliance and preparedness for disaster recovery 1

2 Plant-Wide Information & OEE Where is data required during the manufacturing process? This is a significant consideration for manufacturers. Consider the following company needs: Operation needs production data to facilitate scheduling requirements and capacity/workflow analysis. It will help them identify over/under-utilized equipment and what orders have been fulfilled on-time. Maintenance requires downtime data to address preventative maintenance adjustments. This can include identifying the top five breakdown events eating away at production time. Quality team requires reject/scrap information for testing, recalls, and customer data requirements. Operators like feedback on how they are performing against targets, particularly if there are areas they can affect and/or control: OEE (Overall Equipment Effectiveness), production rate, and quality rate. Finance may want to assign costs to downtime and material usage. The heightened focus on data systems can be attributed to many factors. Government regulatory pressures and industry trends have been forcing manufacturers to produce more data, more history, and more traceability surrounding their products and processes. As a solution to these varying issues and needs, manufacturers are looking at different opportunities that reside in becoming an information-driven plant or facility. One data opportunity that can provide a strong return on investment is OEE. As an industry accepted tool for measuring efficiencies, OEE can: Provide reliable, constant performance indicators. An effective OEE system is a constant window into the performance of your equipment and your people, as well as how effectively your raw materials are utilized. Visually and numerically identify areas for improvement. OEE will identify the areas in which you should concentrate your efforts for improvement. You may find an equipment issue first, then a labor issue, then be able to focus on more effective use of your raw materials and other purchased resources. Automatically log quality events for future analysis and improvement. OEE tools can use quality and reject data from packaging verification and other systems as part of the quality component of the OEE equation. Metal detector, checkweigher, vision system, and other verification system events can be logged to the OEE system. Positively impact supply chain reliability. Real-time visibility into your operations means that issues can be captured and addressed quickly before they affect shipping/delivery commitments. Provide baseline data for traceability and genealogy. Electronically recorded product attributes typically found in an OEE system are part of a batch, lot, and sub-lot traceability information. As well, highly functional OEE tools can easily associate process events with a lot that provides traceability beyond just ingredients. 2

3 Plant-Wide Information & OEE Figure 1: Six Big Loss Categories for OEE OEE Component 6 Big Loss Categories Description Availability Breakdowns Set-up and adjustments Downtime due to unplanned maintenance, tooling and equipment failures. Downtime due to set-up/changeover, material/labour shortages. Performance Small stops Reduced speed Start-up rejects Speed loss due to short (<5 min) downtime events such as misfeeds, sensors, or cleaning that does not require maintenance. Speed loss due to equipment running slower than ideal production rate. Scrap, rework, or other rejects during startup. Quality Production rejects Scrap, rework, or other rejects during normal production. OEE is a metric that can be used to analyze and improve the efficiency of your plant by focusing on equipment and process reliability. OEE analysis can also provide instrumental data for improvements in capacity/machine utilization. There are six big loss categories that can be directly impacted by OEE information (Figure 1): breakdowns, setup and adjustments, small stops, reduced speed, start-up rejects, and production rejects. OEE focuses on three key performance indicators: availability, performance, and quality. Although OEE components can vary slightly between plants and industries, Figure 2 illustrates these three KPIs in the context of time. For this reason, we created the Implementation Steps for an OEE System (Figure 3) a systemized approach to planning, evaluating, and implementing information-driven plant or facility programs for manufacturers facility. 3

4 Figure 2: OEE Key Performance Indicators Key Performance Indicator Time Figure 3: Implementation Steps for an OEE System How the Works As with any data design, you need to consider all processes, explore the big picture, and think creatively on how you can improve on each operation. This kit is divided into five question sets. The first three have been designed to assist you in developing a framework around your general data enabling needs. The last two question sets investigate deeper into your facility to help you in the identification and selection of the most appropriate OEE technology for your application. Use the space provided or expand your ideas onto a notepad. Once completed, you will be ready for your complimentary on-site OEE review, which is discussed in more detail on the last page of this kit. 4

5 Set 1 Enterprise Assessment Questions Please carefully read each pair of statements and rate your reactions. Decide where your facility lies on the scale, add up your total from each column, and then combine your totals to create your score out of 100. The Data Enabled Scorecard We do not have accessible, useful, historical information for process improvement and quality control. We have easily accessible, valuable, historical information for process improvement and quality control. We do not have automatically collected information that we can use to reduce operating costs. We maximize the value of the data we collect to reduce operating costs. Our capital budget does not include regular implementation of data collection initiatives. We have capital support in place to regularly implement data collection initiatives. We do not have a defined long-term information and data architecture plan to meet regulatory and corporate goals. We have defined our long-term information and data architecture needs to meet regulatory and corporate goals. The information we could use to make decisions is not always available when we need it most. We do not have the information available to establish that our assets are being fully utilized. The information we need to make decisions is always available in a timely fashion. We can verify that our assets are being fully utilized with accurate information. We do not execute recall scenarios to test the viability of our data. We regularly execute recall scenarios to prove that our data is readily available and accurate. Production related information does not flow effortlessly between our automation system and business system. We do not have tracked lot/batch information available for proactive actions before crisis scenarios occur. The flow of production related information is seamless between our automation system and business system. Lot/batch tracking information is available for proactive actions before crisis scenarios occur. We do not have the accurate data available from which to base our productions decisions. We have the right information available to make production decisions. ADD COLUMN TOTALS YOUR SCORE

6 Set 2 Data Enabling Questions This second set of questions focuses on general, high-level issues regarding data and your facility s requirements. 1. What production data do you have accessible today? 2. What data do you require to have available? 3. What is the most important data required by: production, quality control, maintenance, warehouse, engineering, finance, and general operations? 4. Why is the data required (by production, quality control, maintenance, warehouse, engineering, finance, and general operations) not available now? 5. How timely does production data need to be for different divisions? What kind of benefits would be produced if this data was available in real-time? 6. If you could identify in real-time your work-in-progress (WIP), what departments would benefit from this and why? 6

7 Set 3 OEE Opportunity Questions This next set of questions assists you in thinking about your facility and developing a list of opportunities where OEE could potentially enable your processes or minimize costs. These questions are not all-inclusive, but serve as a starting point. 1. How do you measure equipment performance today? 2. What is the general level of acceptance of electronic data collection systems within your organization? Is the same level of acceptance present within all departments (operations, maintenance, management, etc.)? 3. Considering your operations, are you aware if there is additional capacity available, and if so, how much? Is there uncertainty regarding the potential of this capacity? 4. What types of waste can you currently identify in your production system (product, raw materials, labor resources, equipment resources)? 5. How do you qualify and quantify this waste in the areas of: Rejects Unscheduled downtime Lost time due to material/labour shortages Adherence to product quality 7

8 Set 3 OEE Opportunity Questions (continued) 6. How do you manage changeover or product recipe changes? Do you know how much waste and lost time they contribute to your operations? 7. When addressing customer returns, changes, or recalls, how do you prepare a history of production and process parameters, including model, batch, and/or lot numbers? 8. How do you identify key production factors as a means to quantify your golden batch or ideal production run? 9. What kind of information can you readily supply to other personnel regarding your key performance indicators, production, or inventory in a timely manner? What is your method for communicating production performance results to personnel at all levels (management, production, quality, maintenance, etc.)? 10. How do you currently schedule your production? (Consider make-to-stock/make-to-order, manual scheduling tools available, automatic scheduling available.) How is this scheduled compared to actual production in real-time to show current order fulfillment? What types of standards are used when examining your production results? 8

9 Set 4 OEE Opportunity Analysis As stated earlier, for an OEE project to succeed, it is necessary to approach the business problem and potential OEE solution using a systematic approach. To deepen the analysis of the requirements of the organization, it is beneficial to examine some specific areas or needs in your facility. The purpose of this next section is to highlight within your plant existing processes that can specifically benefit from OEE. Please read each statement and place a checkmark beside each one that you feel accurately describes your situation or requirements. Detailed downtime information (reason code, duration) is not available in real-time for all of your equipment. Production target quantities are not met on schedule and you need timely data to determine why. Manual data entry errors are being made when collecting production data. Significant time and energy is spent on searching multiple locations for historical production information. You don t know which piece of your equipment has the most amount of downtime that can be reduced through preventative maintenance. You have Six Sigma or other Lean Manufacturing initiatives that require access to equipment data. Your scrap and waste rates are high compared to corporate and/or industry targets. You need data available to determine why quality is suffering. 9

10 Set 5 Project Technology Considerations As there are several factors for data tracking related to OEE, it is essential to select the appropriate technology for your application. The purpose of this last set is to examine opportunities within your facility and look at each factor involved in selecting the most appropriate OEE technology. Infrastructure-Related Considerations Considerations 1. What types of PLCs and other controllers are used in your facility? Include both manufacturer and model (AB ControlLogix, Siemens S7, Omron CJ1, etc.) Comments Are your controllers networked together? What communication networks are used (Ethernet, Profibus, DH+, etc.)? Is infrastructure in place to securely bridge Ethernet networks between the office and plant floor? What types of HMIs are used in your facility for data entry purposes (PC, operator panel, barcoding, etc.)? Where are the data servers located (local plant, remote site)? What is your standard relational database system (Microsoft SQL, Oracle)? Systems and Reporting Considerations Considerations 1. What types of reports are required by the following divisions? Operations? Production? Quality? Engineering? Maintenance? Other divisions/areas? Comments Where are the data servers located (local plant, remote site)? What is your standard relational database system (Microsoft SQL, Oracle)?

11 Set 5 Project Technology Considerations (continued) Data Requirements and Reliability Considerations: Review each requirement, check whether it is a factor, and note relevant details. 1. What level of granularity/ resolution is required? Checklist and comments per equipment/line: Equip./Line: Equip./Line: Equip./Line: OEE by line or by equipment Downtime by equipment or operational step 2. OEE components: Availability: uptime, downtime Performance: ideal production Quality: production incl. rejects 3. Other process variables: Production events Quality data SPC Equipment parameters Recipe parameters Energy usage 4. Production tracking: Batch Lot Part Model Operator 5. PLCs on this line/equipment 6. HMIs on this line/equipment Once you have completed this, send a copy to JMP Solutions using the contact information provided to you. We will arrange for an OEE specialist to contact you and arrange for your two-hour on-site OEE assessment.

12 Our Approach to Overall Equipment Effectiveness: Complete the OEE /Initial Production and Operation Review Meeting We listen and clarify your needs. Then, we outline solutions, possibilities, and recommendations. On-Site OEE Assessment We will be on-site to review your current data collection system, SCADA system and alarms, as well as your PLC infrastructure. The assessment will identify data collection opportunities. If you select JMP as the system integrator, this assessment cost is deducted from the cost of the overall project. Engineering Scope Specification If contracted, we can build a specification and scope document if one does not exist. This Engineering Specification will highlight the best course of action to be taken to start monitoring those areas that are in need of the greatest improvement. It will define the type of holistic dashboards your team will use daily, weekly, and monthly to drive plant throughput and reduce operating costs. Proposal Review An in-person meeting to review the technical proposal including the benefits, value, and justifications needed for the project to pass your internal hurdle rates. Project Kick-off Once the specification document is agreed to and accepted, our team of engineers will begin the project. As part of our Project Management process: Weekly formal communication meetings and project updates will take place. Project gate reviews will be conducted and completed throughout the project. During the project kick-off and project execution, we define with you who needs to be trained for proper operation, maintenance, troubleshooting and updating of the system so your team is fully capable of sustaining and maintaining the plant-wide information and reporting system. Project Completion At project completion, JMP will ensure that all tasks are completed and a formal site acceptance test (SAT) is acknowledged by you. We will also schedule for monthly check-ins for a year, where we will remotely monitor the system and review with your team how you are using the information to improve your operations. Serving National Customers Locally Burlington (905) Calgary (403) Cambridge (519) Dallas (214) Houston (832) Information Division (513) Lexington (519) London (519) Montreal (514) New Jersey (973) Philadelphia (610) San Antonio (210) Robotics Division (519) Toronto (905)