Incremental improvements in OEE lead to additional uptime, increased capacity, better quality, lower costs, and the ability to grow without adding more machinery. OEE experts from TBM discuss three key areas of opportunity and what you can do now to move the needle and make a big impact.

1. Beyond Compliance
Webinar & Podcast Series for Process Manufacturers
Moving the OEE Needle
Tips for Surpassing 82-85%
with David Hicks, John Alford and Tony Fendyke

2. ✔ Improve Yield
✔ Maximize Productivity
✔ Ensure Compliance
Plant Management Platform
BEYOND COMPLIANCE
The Sponsor

3. Casual but Professional Format
✔ Ask questions! (Q&A at end)
✔ Only panelists are displayed
✔ Recording link will be shared
✔ Audio issues: use call-in number
BEYOND COMPLIANCE
Helpful tips
Before We Get Started

4. BEYOND COMPLIANCE
Today’s Panelists
David Hicks
Vice President, Maintenance
Excellence Practice Leader
• Leads large-scale client
engagements and operational
diagnostics.
• Strong background in analytics,
quality, asset utilization,
management system, and lean
transformation.
• Maintenance Excellence Practice
Leader
John Alford
Senior Management Consultant
Maintenance & OEE SME
• 30+ years at Ford as a Lean
Optimization Specialist.
• Expertise in OEE and
Maintenance Excellence.
• Key creator of TBM’s
Maintenance Excellence practice.
Tony Fendyke
Senior Management Consultant
Maintenance & OEE SME
• 25+ Years in operational
improvement, operations and
quality.
• Deep packaging industry work
improving quality & reducing
costs.
• Six Sigma Black Belt,
expertise in management
system and problem solving.

5. BEYOND COMPLIANCE
About TBM
TBM specializes in operations and supply
chain consulting for manufacturers and
distributors. We push the pedal down in your
operations to make you more agile and help
you accelerate business performance 3-5x
faster than your peers.

6. BEYOND COMPLIANCE
Webinar Agenda
• Three Hidden Gems of OEE Potential
What to look for
Best practices for driving incremental
improvements
Examples & inspiration
• Translating OEE into Financial Impact
• Q&A

7. BEYOND COMPLIANCE
Industry Week Best-in-Class Statistical Profile Survey 2015-2019
Source: 2019 Industry Week Statistical Profile. Best Plants Data. Finalists and winners from 2015-2019, 69 plants.

8. What is Your Current OEE Score?

9. BEYOND COMPLIANCE
START UP CHANGEOVERS BRIEF STOPS
Three Hidden Gems of OEE Potential
1. Variation in Standards
2. First Hour
3. Speed & Consistency
1. Scheduling
2. Set Up
3. Ramp Up
1. Downstream Equipment
Failures
2. Ideal Cycle Time
3. Micro Stops

10. BEYOND COMPLIANCE
START-UP: Reduce Variation Between Shift or Product Changes
• Different interpretation of
standards for pass/fail or other
quality measures
• Not applying standards uniformly
across shifts
• Inspector variation—Inspectors
using their own standards
• Allowing operators to tweak the
process—not follow the
standards
• Equipment setting changes not
documented
• Part measurement results delays
• Time needed to get to operating
temperature
• Monday morning set up after
weekend close
• Machine incapability—sometimes
machines have hiccups—e.g., bringing
heat up too quickly
• Failure to follow start-up and shut
down procedures
• Different rates for different products
• Acceptance of speed losses – not
resolving issues
Variation in Standards First Hour Speed & Consistency

11. BEYOND COMPLIANCE
CHANGEOVERS: Critical Few with Optimal Speed & Quality
• Schedule “break-ins” from sales,
marketing or dispatch
• Not taking shipping requirements
into consideration
• Rescheduling demand through
losses or pulling forward
• Allowing for frequent size
changes that don’t apply to the
pace setting machine
• Neglecting to update standard
timings based on machine speeds
or changeover timing (altering
machine speeds)
• Checking and updating standards
for the allotted changeover time
• Failing to adjust downstream
equipment (conveyors, testing
equipment, etc.) that have to be
adjusted due to size/
configuration changes
• Ramping up too fast or too slow
• Inconsistent rates from one product
to another
• Equipment issues if speed isn’t
accelerated at the right rate
• Dependency on a certain work
skill set
• Daily tweaks / changes
• Performance variability between
changeover crews and shift teams
Scheduling Set-Up Ramp-Up

12. BEYOND COMPLIANCE
BRIEF STOPS: Eliminate Unnecessary Interruptions
• Downstream equipment may be beyond
your core competencies
• Cameras, leak tests, bagging, boxing,
printing, taping may create main line
shut-downs or diversions
• Product changes may require
adjustments to downstream equipment
• Failure to stick with “ideal” cycle
times—operating may think it runs better
on a different setting
• Machines not capable of running at idea
cycle time due to machine modifications
• Changing out parts accommodate
different materials
• Robot stalls or conveyance
• Often not tracked on production
documentation
• Time losses are seen as very small and
become accepted as “normal”
• Built-in stops: changing a tool, reorienting a
part, slowing down to splice
• Work-arounds become accepted standards –
welding distortion tap, clearing swarf,
dimension inspection, etc.
• Overprocessing—remove flash, retighten,
reposition, final cut
• Failing to question reasons for any stoppage
and eliminating or reducing where possible
Downstream Equipment Cycle Time Micro-Stops

13. When and How Often is OEE Reviewed?

14. BEYOND COMPLIANCE
CASE STUDY:
Improper Use of OEE & Hidden Scrap Impacted Line Speed
The Challenge
The line was running to slowly; engineering was told to increase line speed or
add a new shift to meet demand.
What We Discovered
• Aluminum wheels had a 25% rejection rate which as affecting speed.
• High rate of melt for unusable wheels.
• One operator running two presses—found that one press was open too long
resulting in porosity from inconsistent temperatures.
• We weren’t using OEE correctly.
• Excessive scrap rate / slowed line production, going undetected because the
scrap was being melted and re-used. (Scrap wasn’t visible).
What We Did
• 2 machines running at ideal cycle time
• Created error proofing to keep equipment synchronized with operator
RESULT: Lowered porosity from >25% to < 6%
Prevented plant shut down; did not need to add a shift
New Car in
High Demand
Manufacturer unable to
produce enough wheels to
keep up with demand

15. BEYOND COMPLIANCE
CASE STUDY:
Cost Reduction, Quality Improvement, Capacity Optimization
Growing Packaging
Category
Equipment not running at
standard speed-profit
margin eroding quickly
The Challenge
Eroding margins due to quality defects; customer claims increasing.
What We Discovered
• OEE in upper 80s, still needed to improve availability and acceptance—
not running at a standard speed.
• Changeover times longer than necessary.
• Equipment cycle time affecting finished and shipped rolls—
throughput becoming a bottleneck.
What We Did
• Vision system correlation study developed reaction limits for rejects or
acceptance criteria when moving papermaking to the extruder.
• Improved electrical and mechanical systems to prevent unplanned downtime.
• Increased wrapper roll sizes and increase header stack heights.
• Developed changeover standards.
RESULT: $16MM in savings
Reduced downtime for changeovers by 15%. Better product acceptance and
uptime, trained problem solvers.

16. BEYOND COMPLIANCE
Talk in Numbers to Gain Executive Support
It’s imperative to express the impact of OEE improvements in financial terms
OEE Calculator
Demonstrates Savings
Assumptions:
• Absorption accounting approach.
• You can sell as much as you make.
Outcome:
• Calculate labor impact based on
current OEE level and labor spend.
• Calculate a portion of utility savings
and add to labor savings.
Scenario 1
Assumptions:
• Sales are fixed.
• Target is to reduce headcount
Outcome:
• As you achieve improvements in OEE,
you will reach plateaus where labor
can be removed.
Scenario 2

17. BEYOND COMPLIANCE
Key Takeaways: Things You Can Do Differently
1. Recognize and drive all three components of OEE
2. Apply right first time with vigor
3. Use speed losses as an enhancement opportunity but don’t accept slippage
4. Any OEE loss is waste of material people or energy
5. Hour by hour tracking
6. Create problem solving capability

18. Q&A
BEYOND COMPLIANCE

19. BEYOND COMPLIANCE
David Hicks
Vice President & Practice Leader
Maintenance Excellence
• 610.662.3489
• dhicks@tbmcg.com
John Alford
Senior Management Consultant
Maintenance & OEE SME
• 919.599.8603
• jalford@tbmcg.com
Tony Fendyke
Senior Management Consultant
Maintenance & OEE SME
• +44 7944 151465
• tfendyke@tbmcg.com
Contact the Speakers
Find out more at: www.tbmcg.com

20. White Papers & Surveys
Webinars & Videos
Product & Partner Info
Solution Consultation
BEYOND COMPLIANCE
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