3. OEE OVERVIEW
$$$$
$
What if you had a „Tool‟ that could
help increase manufacturing
efficiency 10 - 50%
Profitability would increase 20 –
300%
3
4. OEE OVERVIEW
OEE Defined
Overall Equipment Effectiveness (OEE) is a quantitative way of measuring how
well a standalone or a flow-line production system operates in making good
product relative to what the system could make if it operated perfectly, 100% of
the scheduled time based on specific products and processes.
OEE is a Key Benchmarking metric used to define the Throughput Gap between
Current State and „World Class‟ for your system.
“World Class” is considered to be 85%. Good companies run in the 95+% range.
Many manufacturers run in the 30-60% range.
4
5. OEE OVERVIEW
Initial Foundation
“OVERALL EQUIPMENT
EFFECTIVENESS:
A Powerful Production/Maintenance
Tool
for Increased Profits”
Robert C. Hansen, PE., CMRP
Industrial Press, New York, NY
2001
Owner: RC Hansen Consulting, LLCProfits by over
90 % of my Clients have increased
$1 Million Dollars in the first year post
970-490-1720 cell: 970-481-3145 engagement.
5
6. OEE OVERVIEW
Initial Foundation
Correctly identifying improvement targets often leverages “Hidden Factory”
Financial Benefit Opportunities of > 10 : 1 over the next alternative.
“What IF?” a Work Center improved OEE by 3 points (approx. a 5% ↑ in OEE)
and we sold everything?
WC A ↑ IFO by $625,000
WC B ↑ IFO by $48,000
6
7. OEE OVERVIEW
Initial Foundation
Providing everyone in the organization the range of OEE improvement
tools is valuable.
Identifying exactly where and when to focus your Key people (and
avoid activity traps):
Priceless!!!
7
8. OEE OVERVIEW
Initial Foundation
All methodologies require data to
support decision making
Lean 6S, OEE, TEEP, TPM, Takt Time, TQM, Kaizen, Continuous Improvement
Collect actual automated machine data to prove the case
8
9. OEE OVERVIEW
Initial Foundation
The OEE Industry Standard gives a guideline in order to find ALL potential losses
in effectiveness.
An average machine in an average
factory runs about 35 to 45% OEE.
So it is losing 55 to 65% capacity!
While - not running
- running at reduced speed
- or producing parts out of spec.
How come then, that the average
reported numbers are way over 80%?
www.oeefoundation.org
It is a matter of definition, What you are not looking for you will not find.
To really reveal the hidden machines in your factory, ALL Losses need to be
defined and visualized
9
10. OEE OVERVIEW
Productivity Increases of 1050%
Reduce Unplanned Downtime
Reduce Setup and Changeover Times
Better Management of Resource Allocation,
Planning and Scheduling
Operator Productivity Increases
Efficiency with Automated Data Collection
Better Root Cause Analysis
Improve Quality, Minimize Rejects
Identify Bottlenecks and Constraints
Improve On-Time Delivery
Manage Operations Pre-emptively & Proactively
Measurably Improve Profitability
10
11. OEE OVERVIEW
OEE is integral to Successful LEAN manufacturing
Used adroitly, Strategic OEE means Millions of $$ of Profits
„Financial OEE‟ becomes a Navigational tool for Success
OEE = Quality, Reliability and Manufacturing Best Practices
World Class OEE = “Least Price Provider” of products
11
12. OEE OVERVIEW
Why use OEE?
OEE
Constantly improving their „Best Ever‟ performance
OEE
TPM is integrated to successful LEAN Manufacturing
OEE
Characteristics of Top Quartile Manufacturing Organizations
OEE is the visual metric of Total Productive Manufacturing
Synergizing every player‟s contribution
Effectively Communicating new ideas or conditions
12
13. OEE OVERVIEW
Why is OEE so important?
If you were told that your department was running flat out you
might reasonably assume that the equipment was running
efficiently and effectively.
What if the equipment only ran for 65% of the time?
What if when it ran it ran at 80% of its speed ?
What if only 90% of the parts it made are good?
Individually these performance measures seem to indicate an OK
piece of equipment, but is it a true picture?
What is having an impact on these performance figures?
13
14. Root Cause Analysis
OEE OVERVIEW
How deep are you
Problems
The causal or
willing or able to dig?
contributing factors
Are defined in terms of their...
that, if corrected,
would prevent
Effects
recurrence of the
identified problem. But this is only what we see on the surface
our habits and work procedures
The “true” reason
that contributed to
the creation of a
problem, defect or
nonconformance.
Causes
What is happening under the surface?
what is causing our habits and work procedures
Root Cause
A root cause is a blind spot beyond our reach
they are hidden deep down, they feed into or create many of the causes that we see under the surface
14
15. OEE OVERVIEW
What is the Business Case?
OEE and the effect to the Bottom Line
Business Case
Revenue:
Current state OEE: 60%
Income from Operations (IFO):
$
10,000,000.00
$
1,000,000.00
(estimated)
(assumed)
(assumed)
A 10% improvement in OEE (capacity utilization) will increase IFO 22% (Bob Hansen, Overall Equipment Effectiveness, pp 47 – 66).
A 22% improvement to an IFO of $
1,000,000.00 is $
220,000.00
Monthly that equates to $
18,333.33
left "on the table"
The assumed figures may be quite conservative, however they do prove a point.
The ROI for our solution is three to six months depending on the number of machines monitored.
After the ROI period there is at least $
18,333.33 every month added to the bottom line.
Without implementing a solution such as MERLIN, you are losing $
220,000.00 in additional IFO every year.
15
16. How do we use OEE?
OEE OVERVIEW
OEE is only a measure, its benefits will be lost if the shortfalls it
identifies are not acted upon.
OEE is a total measure of performance but the data used to produce it
must be used to prioritise improvement tasks.
The purpose of measurement is to identify losses, remove waste and
drive improvement.
OEE should be used to support the Total Productive Maintenance
(TPM) approach and the tools it supplies.
16
17. OEE OVERVIEW
How do we use OEE?
Keith Mobley, UPTIME Magazine
“Too many corporations are run based on the instincts of its executives rather
than on data that define a true picture of the market and operating
performance of the plant.”
“One absolute that I have learned is that sustainable change must be lead
from the top of the organization. ……….. Simply stated, change must be led
from the top and implemented from the bottom.”
“The first hurdle that must be overcome is simply convincing the workforce
that there is a need for change. ……… „profit hides inefficiency and
ineffectiveness‟”
“No one in a profitable company, even when profits are marginal, ever asks
how much profit we are leaving on the table?”
17
18. What are the benefits of
OEE?
OEE OVERVIEW
FOCUS
Highlight priorities for change.
SIMPLICITY
Even complex processes can be measured.
FEEDBACK
Before and after change.
BENCHMARKING
Objective comparisons.
TARGET SETTING
Setting achievable goals.
18
19. OEE OVERVIEW
How do I measure OEE?
OEE =
AVAILABILITY
x PERFORMANCE
x QUALITY
19
20. OEE OVERVIEW
How do I measure OEE?
OEE % = Availability x Performance x Quality
Shows group or plant output as a percentage of maximum capacity
World Class = 85% (= 95% x 95% x 95%)
It is not uncommon to > 90%!
Availability %
Percentage of scheduled time that the operation is actually
operating.
Availability % = Run Time / Scheduled Time
Performance %
Speed at which the Work Center runs as a percentage of its
designed
speed or ideal cycle time or most often considered the
“Standard”.
Performance % = (Parts Made x Standard) / Run Time
Quality %
20
21. OEE OVERVIEW
How do I measure OEE?
REQUIRED: GOOD SHOP FLOOR DATA FOR QUALITY ANALYSIS
Data Calculations
Availability = C/B
OEE = D/B
Utilization = C/A
TEEP= D/A
21
22. OEE OVERVIEW
OEE is a Key Performance Indicator (KPI) that can measure the
impact of change on a process caused by eliminating process, or
equipment losses
OEE is used to measure the performance of equipment and the
process - not the operator.
22
23. OEE OVERVIEW
Organizations that train and strategically use the OEE Tools and
methods presented in the modules have a clear roadmap to quickly
achieve “Top Quartile” competitive advantage in their line of business.
„Top Quartile‟ Winning Teams have
common best practices;
Detailed Measurement of their performance
Constantly improving their „Best Ever‟ performance
Synergizing every player‟s contribution
Effectively Communicating new ideas or conditions
Being the Provider of Choice
re: Price and Delivery
23
26. Pareto Analysis
OEE OVERVIEW
What Is It?
Pareto Analysis is a
data graphing analysis
based on the Pareto
principle which
focuses on identifying
the 20% of sources
that result in 80% of
the problems
Who Should Use It?
This analysis can be
conducted by
anyone on the team
When Do I Use It?
A Pareto Analysis can be
applied to projects of all
sizes where quantifiable
data exists on the process.
It is often one of the first
means of testing a
hypothesis
It is particularly useful for
large scale projects where
analysis must be focused
on those areas most likely
to be causing problems
A Pareto analysis should be
used in the Measure and/or
Analyze phases
How Do I Use It?
Data should be
gathered regarding
the problem to be
solved and the
various factors that
may be affecting it
This data can the be
placed in Microsoft
Excel, sorted, and
placed into a
histogram for easy
analysis and
viewing
26
28. OEE OVERVIEW
OEE and the Six Big Losses
Equipme
nt
Total Available time
Six Big Losses
Planned Downtime
Breakdowns
1
Available time
2 Setup / adjustment
Available operating time
3
Actual operating
time
Effective
operating
time
Idling / minor
stoppages
4
5
Speed
Defects in process
and rework
6
Start up losses
28
29. OEE OVERVIEW
Availability
“The percentage of time equipment is
actually running when we need it”
AVAILABILITY=
AVAILABLE TIME – UNPLANNED DOWNTIME x 100%
AVAILABLE TIME
Where:Available Time =
Total Available Time – Planned Downtime*
*Note :- Planned Downtime could be PM, no scheduled work, breaks, etc.
1
Breakdowns
Available time
2
Setup / adjustment
Available operating time
29
30. Planned vs. Unplanned
Downtime
Planned
OEE OVERVIEW
Excess capacity.
Planned breaks.
Planned Maintenance.
Communications briefs / team meetings.
Unplanned (Losses)
Breakdowns.
Set Ups and Adjustments.
Late deliveries (material).
Operator availability.
Note :
Planned time such as breaks, meetings and maintenance can be considered
as losses (useful for encouraging ideas on how to minimise their disruption)
as long as a consistent approach is taken.
30
31. Productivity
OEE OVERVIEW
“The difference between the
potential output and actual output,
when the equipment was available”
PRODUCTIVITY = IDEAL CYCLE TIME x ACTUAL OUTPUT* x 100%
AVAILABLE OPERATING TIME
*Note :- Actual Output is the Quantity of good & bad parts
Available operating time
Actual operating
time
3
Idling / minor
stoppages
4
Speed
31
32. Operating Speed vs.
Productivity
OEE OVERVIEW
Operating Speed Rate
The % of actual cycle time against ideal cycle time.
Productivity
The Operating Speed Rate factored with interruptions to constant
processing, i.e. idling and minor stoppages.
32
33. Quality
OEE OVERVIEW
“The total good parts produced
expressed as a % of the total parts
produced”
QUALITY=
Actual operating
time
Effective
operating
time
PARTS MADE – DEFECT QUANTITY x 100%
PARTS MADE
5
6
Defects in process
and rework
Start up losses
33
34. Processed vs. Defect
Quantity
OEE OVERVIEW
Parts Made
The total quantity of parts produced in the available time
Defect Quantity
The quantity of parts that did not meet the required standard
(including rework) in the available time
34
35. OEE and the Six Big Losses
OEE OVERVIEW
Equipme
nt
Six Big Losses
1
Available time
Breakdowns
2
Available operating time
3
Actual operating
time
Effective
operating
time
Idling / minor
stoppages
4
5
Setup / adjustment
Speed
Defects in process
and rework
6
Start up losses
35
36. Six Big Losses – What Are
They? Losses
Six Big
OEE OVERVIEW
1
Breakdowns
2
Setup / adjustment
3
Idling / minor
stoppages
4
Speed
5
Defects in process
and rework
6
The time lost due to key equipment
breaking down or deterioration
which causes the production to be
stopped for more than 10 min.
Start up losses
36
37. Six Big Losses – What Are
They? Losses
Six Big
OEE OVERVIEW
1
2
Breakdowns
Setup / adjustment
3
Idling / minor
stoppages
4
Speed
5
Defects in process
and rework
6
The time lost through “product
change over and adjustment ” to
the point where the production of
the new product is completely
satisfactory.
Start up losses
37
38. Six Big Losses – What Are
They? Losses
Six Big
OEE OVERVIEW
1
Breakdowns
2
Setup / adjustment
3
Idling / minor
stoppages
4
Speed
5
Defects in process
and rework
6
The time lost through key
equipment being stopped for less
than 10 min.
Start up losses
Time lost during the standard
cycle when the equipment is not
adding value.
38
39. Six Big Losses – What Are
They? Losses
Six Big
OEE OVERVIEW
1
Breakdowns
2
Setup / adjustment
3
Idling / minor
stoppages
4
Speed
5
Defects in process
and rework
6
The time lost through key
equipment not producing parts at
its optimum rate.
Start up losses
39
40. Six Big Losses – What Are
They? Losses
Six Big
OEE OVERVIEW
1
Breakdowns
2
Setup / adjustment
3
Idling / minor
stoppages
4
The time lost through key
equipment not producing parts
that meet the specified quality
standard.
Speed
5
Defects in process
and rework
6
The time lost through key
equipment being utilised to rework
sub-standard parts.
Start up losses
40
41. Six Big Losses – What Are
They? Losses
Six Big
OEE OVERVIEW
1
Breakdowns
2
Setup / adjustment
3
Idling / minor
stoppages
4
Speed
5
Defects in process
and rework
6
The time lost through key
equipment not producing parts to
the specified quality standard,
following start up and before the
equipment achieves controllable
production conditions.
Start up losses
41
46. OEE Overview
OEE OVERVIEW
OEE combines manufacturing
aspects of:
Availability – Actual uptime vs. scheduled time
Performance – Speed factor, actual rate vs. ideal rate
Quality – Good units vs. total units
OEE = Availability × Performance × Quality
TEEP = Utilization × Performance × Quality
OEE and TEEP directly correlate to the amount of good product produced
(transferred) versus total possible product.
46
47. OEE Overview
OEE OVERVIEW
OEE (Overall Equipment Effectiveness) is the measure of the amount of
good product produced compared to the amount of product that could
have been produced if the manufacturing system operated perfectly for
its entire scheduled time.
Total Effective Equipment Performance (TEEP) is the measure of the
amount of good product produced compared to the amount of product
that could have been produced if the manufacturing system operated
perfectly for the total time (calendar time) over the time period under
consideration.
47
49. OEE Overview
OEE OVERVIEW
TPM
(OEE)
Toyota Prod. System
Breakdowns
Setup &
Adjustment
Idling and
minor
Stoppage
Reduced
Speed
Quality
Defects
Reduced Yield
From Startup
Implementing Flow
Process
Eliminating Defects
Stockless Production
Reduced Lot Size
Quick Setup
Standard Cycle Times
Standard Production
Sequence
Standard Idle Time
Visual Control and on
Line Stop Alarm
Improved Machine
Operability
Improved Maintainability
49
51. How to collect data for OEE
OEE OVERVIEW
Example: Three Hourly Data Sheet
51
52. How to collect data for OEE
OEE OVERVIEW
AVAILABILITY
A
B
C=A-B
Gross Time
(in minutes)
Planned Down Time
(in minutes)
Net Available Time
(in minutes)
Non planned stoppages
(in minutes)
Operating Time
(in minutes)
D
E=C-D
F = E/C
(mins/ unit)
G
H
I= (HxG)/E
AVAILABILITY
PRODUCTIVITY
Output
Standard Cycle time
PRODUCTIVITY
QUALITY
Defect Quantity
QUALITY
J
K = (G-J)/G
52
53. Connected Manufacturing
OEE OVERVIEW
“Following the computer and the Internet,
every machine tool will become a node on
the network creating greater efficiency.”
Connected
Manufacturing
Model
Internet
networked
personal
computing
cooperative
computing
universal
computer
connectivity
distributed
computing
batch computing
time sharing
Universal
Machine
Connectivity
open systems &
client servers
micros / PC’s
The technology is here today, the tools are readily
available and cost effective
minis
mainframes
1960
1970
53
1980
1990
2000
2010
53
55. ISA-95 Standards
Profit
Level 4
Level 3
Level 2
Level 1
MS Dynamics AX
Mfg. Execution System
Dist. Control System
Connection
Hardware
Abstraction Layer
Ax9150 UMI
Machine
Level 0
From AX: production plan, work orders
To AX: production performance results
55
56. OEE OVERVIEW
ADC + OEE = Profits
COLLATERAL BENEFITS OF
MES
Statistical evaluation of variability (Goal Setting)
Best Ever Performance by Product/Process/Team
Modeling and Analysis of the “Hidden Factory”
Maintenance and Quality information
Timeline charting of key events
Learning Curve Information /ADC = Automatic Data Collection
Setting Planning Values
MES = Manufacturing Execution System
56
61. OEE OVERVIEW
OEE Overview
The Power of Financial OEE to expose
the “Hidden Factory”
Practice Example Factory Scenario:
Current State Annual Volume = 223,650 units
IFO was $4,592,000.
„Financial OEE‟ Analysis:
All Workstations at 85% OEE, and 99.8% Quality Factor
Volume increased by 33,787 units
a 15 % increase
IFO increased by $4,544,000
a 99 % increase
61
62. OEE Overview
OEE OVERVIEW
Understanding the Power of OEE
1. Learning the Basics of OEE Metrics
2. Maintenance/Production OEE Tools
3. Financial OEE
4. OEE Data Analysis
OEE
BASICS
FINANCIAL
OEE
TOOLS
ANALYSIS
62
63. OEE Overview
OEE OVERVIEW
OEE Data Analysis
Determine Variability, Capability
Develop „SMART‟ Goals
Analysis of Target Alternatives
63
64. OEE Overview
OEE OVERVIEW
OEE Data Analysis
1.
OEE: The Seen and Unseen
2.
Real-time Performance Measurements - databases
3.
Exposing Variability; Determining Capability
4.
Developing OEE Performance Curves
5.
Setting „SMART‟ Goals for Improvement
6.
Data Analysis for Target Selection
7.
Consensus Building using Cross-functional Teams
8.
Combining Subjective-Objective data into a
Decision Table
64
65. OEE Overview
OEE OVERVIEW
Learning to „see‟ OEE
As a Strategic Tool and a Monitoring Tool
As a Reliability metric and a Business metric
As a leading metric and a lagging metric
Using OEE as a „fair‟ benchmarking metric
Quantify the value of each OEE factor
65
66. Lean Thinking
OEE OVERVIEW
Lean Thinking Management System
Model Management System Model reflects graphically, the
The Lean
integration of Hoshin Kanri (Strategic Deployment), Deming’s PDCA
Wheel (plan–do–check–act) four-step model for carrying out change with
the Toyota Way 2001 principles (Continuous Improvement and Respect
for people), and how the lean management system is driven by customer
requirements and level of satisfaction.
The Lean Thinking Management System is used to implement the 5
Elements of Lean Thinking.
66
67. The Deming Cycle
OEE OVERVIEW
...Data based problem solving
Typical PDCA:
Plan quickly
High Velocity Organization PDCA:
Plan deeply
• Discuss actual situation and target with
• Address Symptoms
everyone affected
Do immediately
• Really understand/model the problem
and its root cause
• Jump to conclusions
Check roughly
Act pretty much the way
you did before
Do many quick experiments
• Validate your thinking
Check implications carefully
Act systematically
• Update and deploy standards and
checklist disciplines
67
68. Lean Six Sigma
OEE OVERVIEW
Balance and Complexity and Increase
Lean and Six Sigma are natural allies in pursuit of
Reliability
•
Simplicity (Lean)
business performance improvement
•
Simple, low reliability
Complex, low reliability
Lean reduces process and business complexity
Simple, high reliability
Complex, high
reliability
•
Six Sigma increases
process reliability and enterprise effectiveness
•
Lean and Six Sigma amplify each other and
accelerate strategic benefits
•
Reliability
(Six Sigma)
Together, Lean and Six Sigma offer a significantly
higher probability of success
68
69. Current Condition
OEE OVERVIEW
…Ask what we already know
Specific, detailed, quantitative, concise
Tables, graphs, histograms, value-stream maps, diagrams
Highlight exactly where problem occurs
Baseline to compare to metrics after countermeasures are
applied
Engage everyone affected by or causing symptoms
Build Consensus on what is
Symptoms / Undesirable Effects everyone can see
Foundation of authority to experiment with
countermeasures
Update as understanding improves
69
70. Goal – Next Target Condition
OEE OVERVIEW
…Model what we expect
What baseline change is wanted?
What does perfect look like?
What does the organization need?
Realistically attainable target condition?
Mentor ensures that the owner has both
Plausible Hypothesis
Based on best available model/understanding of how
the system works/could work
Consensus among stakeholders
Target is attainable and desirable.
Update as root cause and countermeasures developed
70
71. Root Cause
OEE OVERVIEW
…Model Cause & Effect
Identify underlying problem(s) causing symptoms
Root cause is typically faulty thinking or assumptions
Addressing the root cause(s) improves all levels of
symptoms/undesirable effects/visible damage.
Build consensus among stakeholders
Broad agreement on Cause & Effect network
Reflect best current knowledge about how things work
Some techniques: (explained of following slides)
Fishbone Diagram
5 Whys
Histograms
Pareto Analysis
Root Cause Analysis
71
72. Root Cause Analysis
OEE OVERVIEW
What Is It?
A tool used to identify
contain and analyze a
problem, defining the
root cause, defining and
implementing actions to
minimize or eliminate the
root cause and
verification that
corrective action
prevented recurrence of
then problem.
When Do I Use It?
How Do I Use It?
When a problem is not easy to Involve a team to
define without considerable
collect and analyze
analysis
data using other
problem solving tools
While a root cause analysis can
such as Pareto, 5 whys
be used in any phase of a
, brainstorming etc.
continuous improvement
project, it is most commonly
deployed in the Define and
Improve phases
Who Should Use It?
A root cause analysis can be completed by anyone on the project team
It is recommended that project leaders be involved in its creation to ensure
coordination of the analysis
72
73. Root Cause Analysis
OEE OVERVIEW
How deep are you
Problems
The causal or
willing or able to dig?
contributing factors
Are defined in terms of their...
that, if corrected,
would prevent
Effects
recurrence of the
identified problem. But this is only what we see on the surface
our habits and work procedures
The “true” reason
that contributed to
the creation of a
problem, defect or
nonconformance.
Causes
What is happening under the surface?
what is causing our habits and work procedures
Root Cause
A root cause is a blind spot beyond our reach
they are hidden deep down, they feed into or create many of the causes that we see under the surface
73
74. Root Cause Analysis
OEE OVERVIEW
Implement and Assess
Gather Data
Define Problem
It is not a straight forward
journey. You may end up
in a dead end. It requires
patience and persistence.
Create a Solution
Get to the Root Cause
There are tools you can
use to stay on track
and ensure you arrive
at a right destination.
74
75. OEE Overview
OEE OVERVIEW
Understanding the Power of OEE
1. Learning the Basics of OEE Metrics
2. Maintenance/Production OEE Tools
3. Financial OEE
4. OEE Data Analysis
OEE
5. OEE for Leadership
BASICS
FINANCIAL
OEE
TOOLS
ANALYSIS
VISION
75
82. OEE Overview
OEE OVERVIEW
OEE Value Stream Mapping
Maximizing IFO though strategic analysis
Strategically Focused Targets, Aligned and Engaged from
top to bottom, Solves the Success Riddle
82
83. Value Stream
OEE OVERVIEW
The entire set of activities across all parts of your
organization involved in delivering your product or service.
•
•
•
“CUSTOMER”
83
84. OEE Overview
OEE OVERVIEW
OEE Value Stream Mapping
Drill
And
Buff
Rough
Cut &
Shape
Sand
and
Paint
Drill
and
Buff
Assemble
&
Palletize Product A
Product B
Product C
84
85. OEE Overview
OEE OVERVIEW
Understanding the Power of OEE
1. Learning the Basics of OEE Metrics
2. Maintenance/Production OEE Tools
3. Financial OEE
4. OEE Data Analysis
OEE
5. OEE for Leadership
6. OEE Value Stream Mapping
7. OEE Value Stream Analysis
BASICS
FINANCIAL
OEE
TOOLS
NEW
TOOLS
ANALYSIS
VISION
SHIFT
GOALS
BUSINESS
GOALS
$$$$
$$$$$$
85
88. OEE Overview
OEE OVERVIEW
IFO BENEFITS TABLE
WC’S
A
+3 Pts, Same Vol.
Vol. = 223,650
+3 Pts, and
Refill the Factory
Vol. = 233,615
(+9,965 units)
#’S IN 1,000’S
B
BASE CASE IFO = $4,592
C
D
E
$42
$48
$12
$13
$28
$625
$48
$12
$13
$28
Improving WC A has the possibility of 13 times more value
than any other WC for the condition of +3 OEE Pts. higher
Availability/Reliability
From 68.0 % to 71.0 %
88
89. OEE Training
OEE OVERVIEW
Understanding the Power of OEE
14 Modules will cover the 7 study areas
Each Module will bring game changing tools for application
In total, the Best Business Strategy is revealed
89
90. OEE Training
OEE OVERVIEW
OEE-College.com Training Modules
The Overview module demonstrates the Delivery Format
Each Area of Study is contained in an individual CD
Each module on the CD is a narrated PPT Presentation
Modules are provided both With and Without the „Refocus Game‟
Modules are ≈40 min. leaving 10-15 min. for group discussion
The „Practice Factory‟ Base Case excel workbook example templates and
14 “What IF?” investigations are provided on the final CD. The
workbooks can be adapted to model your specific Product Flow
lines and generate your „Financial OEE‟
90
91. OEE Training
OEE OVERVIEW
OEE-College.com Training Modules
Recommended use of the training modules would be:
Designate Productivity Improvement Leaders for High Value Line of
Business (LOB) flow lines on your plant site. These individuals
should become familiar with the Practice Factory example
workbooks and be able to generate new Base Case workbooks and
Benefits Tables specific to their LOB flow line.
All of the Plant Leadership should review all of the modules to gain
knowledge and understanding of the critical steps for Financial OEE
so everyone is one the same page.
Shop floor people should review at least the first 5 areas of study and
practice applying all of the „Tools‟ at their workstations.
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92. OEE Training
OEE OVERVIEW
OEE-College.com Training Modules
The OEE-College.com set of Training Modules cover 7 key areas of
Study that span from OEE Basics to Financial OEE.
Financial OEE is a New Tool for Plant Leadership Teams to expose
exactly where to apply resources for the highest Return On Investment
(ROI) relative to a stipulated Product Mix.
Financial OEE Overview
By Robert C. Hansen, PE., CMRP, Author
Owner RC Hansen Consulting, LLC
970-490-1720 cell 970-481-3145
Robert.Hansen@OEE-College.com
92
93. OEE OVERVIEW
$$$$
$
Increase manufacturing efficiency 10
- 50%
Critical metric of TPM
World Class Best Practices
Visibility
Culture of Productivity
Competitive Edge
Profitability increase 20 – 300%
93
95. Introduction to OEE
The Power of OEE
Generate more
Profits
$$$$
$
OEE OVERVIEW
Memex Automation Inc.
905-635-0590 cell 416-460-7637
JRattray@memex.ca
95
