SlideShare a Scribd company logo
1 of 40
WELCOME TO OUR
PRESENTATION
“
Group Name:
“Fusion”
Group Members
No. Name Designation ID No.
Registration
No.
1. Shiab Hossen Gaddafe Leader 172109 1721723
2. Md. Fuad Hasan Khan Member 172105 1721719
3. Mst. Irin Sultana Jhilik Member 172113 1721727
4. Chhanda Baidya Member 172119 1721732
5. Md. Humaon Kabir Member 172123 1721736
6. Fatema Jannat Chumki Member 172127 1721740
7. Md. Abdul Aziz Member 172131 1721744
“
Chapter: Benchmarking
⊳ (Continue)
Six Steps of Benchmarking (Continue…)
4. Studying Others
4. Studying Others (Continue…)
A. Benchmarking studies look for information:-
• Best-in-class processes
• Measurable results
4. Studying Others (Continue…)
B. Bench markers use,
• Internal sources
• Data in public domain
• Original research (Questionnaires, Site visits & Focus
group)
• Combination of sources
4. Studying Others (Continue…)
C. Site visits and Interviews (unnecessary)
D. Industrial tourism (waste of time)
6. Using the findings
Quality 100%
Standard
Quality of companies product
80%
Actual
performance
Gap
6. Using the findings (Continue…)
A. Closing negative gap
B. Positive result is important
C. The finding must be communicated to the people
within the organization
6. Using the findings (Continue…)
D. The finding must translate to goals and
objectives
E. Two group must agree on the change
• Process owners
• Upper management
6. Using the findings (Continue…)
F. Action plan must be developed
Seven generic steps for development and execution
of action plans:
1) Specify tasks
2) Sequence task
3) Determine resource needs
6. Using the findings (Continue…)
4) Establish tasks schedule.
5) Assign responsibility for each task.
6) Describe expected results.
7) Specify methods for monitoring results.
Pitfalls and Criticisms of Benchmarking
• Quite Simply
• Idea Of Copying Others
• Not a Strategy
• Not a Substitute For Innovation
How to avoid it?
“
Chapter: Total Productive
Maintenance
TOTAL PRODUCTIVE
MAINTENANCE (TPM)
Analyzing TPM
T=TOTAL?
P=PRODUCTIVE?
M=MAINTWNANCE?
No
Breakdown
No Defects
No Accident No Stop
Goals of TPM
Improving equipment capacity.
Maintaining for life
Support from all areas of operation
Using teams for continuous improvement
Encouraging input from all employees
The Plan
• Learning the new philosophy.
• Promoting the new philosophy.
• Training.
• Improvement needs.
• Goals.
• Developing Plan.
• Autonomous work groups.
Learning The New Philosophy
The managers has to cope
with change, by learning the
new philosophy.
1.Benchmarking
2.Flavor-of-the month approach
3. Look at approach
Promoting the Philosophy
Definition of
Training
Training is a learning process
whereby people learn skill, concept,
knowledge and attitude to aid in the
achievement of goal.
Training
Senior Management
Middle
Management
Supervisors
Employ
ees
Don’t just teach the how and
also teach the why
Learn how to deal with the team.
Learn their role.
Learn about the various tools.
Improvement Needs
Six major loss areas need to be measured
for improvement:
Downtime Losses
Reduced Speed
Losses
Poor Quality
Losses
Planned
Unplanned
Idling and minor
stoppages
Slow-downs
Process
nonconformities
Scrap
1. Downtime losses
A = (
𝑇
𝑃
) × 100
Where,
A = availability
T = operating time (P-D)
P = planned operating time
D = downtime
2. Reduced speed losses
E = (
𝐶×𝑁
𝑇
) × 100
Where,
E = performance efficiency
C = theoretical cycle time
N = processed amount (quantity)
3. Poor quality losses
R = (
𝑁−𝑄
𝑁
) × 100
Where,
R = rate of quality products
N = processed amount (quantity)
Q = nonconformities
Equipment Effectiveness
EE = A × 𝐸 × 𝑅
Where,
EE = equipment effectiveness/ overall equipment
effectiveness (OEE)
Note: The target for improvement is 85% equipment
effectiveness.
Example Problem
Last week’s production numbers on machining center JL58 were as
follows:
Scheduled operation = 10 hours/day; 5 days/week
Manufacturing downtime due to meetings, material outages, training,
breaks, and so forth = 410 minutes/week
Maintenance downtime scheduled and equipment breakdown = 227
minutes/week
Theoretical (standard) cycle time = 0.5 minutes/unit
Production for the week = 4450 units
Solution:
Here
P = 10 hours/day × 5 days/week × 60 minutes/hour = 3000
minutes/week
D = 410 minutes/week + 227 minutes/week = 637 minutes/week
T = (P - D) = 3000 - 637 = 2363 minutes
C = 0.5 minutes/unit
N = 4450 units
Q = 15 units
R = (
𝑁−𝑄
𝑁
) × 100
=
4450−15
4450
×100
= 99.7%
A = (
𝑇
𝑃
) × 100
=
2363
3000
× 100
= 78.8%
E = (
𝐶×𝑁
𝑇
) × 100
=
0.5×4450
2363
× 100
= 94.2%
EE = A × 𝐸 × 𝑅
= 0.788 × 0.942 × 0.997
= 0.740 or 74%
Clearly the equipment availability should be improved to
reach the goal of 85% equipment effectiveness.
THANK YOU

More Related Content

Similar to Benchmarking.pptx

Chapter-7 Job Design and Work Measurement Final.pptx
Chapter-7 Job Design and Work Measurement Final.pptxChapter-7 Job Design and Work Measurement Final.pptx
Chapter-7 Job Design and Work Measurement Final.pptxamanuel236786
 
City of Salina-Salina Gets Serious About Performance Efficiencies Presentation
City of Salina-Salina Gets Serious About Performance Efficiencies PresentationCity of Salina-Salina Gets Serious About Performance Efficiencies Presentation
City of Salina-Salina Gets Serious About Performance Efficiencies PresentationCity of Salina
 
Work study and method study
Work study and method studyWork study and method study
Work study and method studyNitin Gulgulia
 
5S present.pptx
5S present.pptx5S present.pptx
5S present.pptxSemra D.
 
Continuous process improvement
Continuous process improvementContinuous process improvement
Continuous process improvementhgmisshazel
 
Continuous process improvement
Continuous process improvementContinuous process improvement
Continuous process improvementhgmisshazel
 
k10798 aaftab alam opc me 6th sem
k10798 aaftab alam opc me 6th semk10798 aaftab alam opc me 6th sem
k10798 aaftab alam opc me 6th semGuddu Ali
 
Effect of work study & time study on production and quality
 Effect of work study & time study on production and quality Effect of work study & time study on production and quality
Effect of work study & time study on production and qualityMd. Mazadul Hasan Shishir
 
Job Design and Work Measurement
Job Design and Work Measurement Job Design and Work Measurement
Job Design and Work Measurement Joshua Miranda
 
Training development382
Training development382Training development382
Training development382rupesh jaiswal
 
Total Quality Management_module 4_18ME734.pptx
Total Quality Management_module 4_18ME734.pptxTotal Quality Management_module 4_18ME734.pptx
Total Quality Management_module 4_18ME734.pptxRoopaDNDandally
 

Similar to Benchmarking.pptx (20)

Method Study
Method Study Method Study
Method Study
 
Training development
Training developmentTraining development
Training development
 
Slides 2015 for contact 7
Slides 2015 for contact 7Slides 2015 for contact 7
Slides 2015 for contact 7
 
Chapter-7 Job Design and Work Measurement Final.pptx
Chapter-7 Job Design and Work Measurement Final.pptxChapter-7 Job Design and Work Measurement Final.pptx
Chapter-7 Job Design and Work Measurement Final.pptx
 
City of Salina-Salina Gets Serious About Performance Efficiencies Presentation
City of Salina-Salina Gets Serious About Performance Efficiencies PresentationCity of Salina-Salina Gets Serious About Performance Efficiencies Presentation
City of Salina-Salina Gets Serious About Performance Efficiencies Presentation
 
Work study and method study
Work study and method studyWork study and method study
Work study and method study
 
5S present.pptx
5S present.pptx5S present.pptx
5S present.pptx
 
Training Strategie Action Learning
Training Strategie  Action Learning Training Strategie  Action Learning
Training Strategie Action Learning
 
Continuous process improvement
Continuous process improvementContinuous process improvement
Continuous process improvement
 
Continuous process improvement
Continuous process improvementContinuous process improvement
Continuous process improvement
 
k10798 aaftab alam opc me 6th sem
k10798 aaftab alam opc me 6th semk10798 aaftab alam opc me 6th sem
k10798 aaftab alam opc me 6th sem
 
T & D
T & DT & D
T & D
 
Effect of work study & time study on production and quality
 Effect of work study & time study on production and quality Effect of work study & time study on production and quality
Effect of work study & time study on production and quality
 
TQM kaizen modified
TQM kaizen modifiedTQM kaizen modified
TQM kaizen modified
 
TrainingDevelopment.ppt
TrainingDevelopment.pptTrainingDevelopment.ppt
TrainingDevelopment.ppt
 
Training & development
Training & developmentTraining & development
Training & development
 
what is qc
what is qcwhat is qc
what is qc
 
Job Design and Work Measurement
Job Design and Work Measurement Job Design and Work Measurement
Job Design and Work Measurement
 
Training development382
Training development382Training development382
Training development382
 
Total Quality Management_module 4_18ME734.pptx
Total Quality Management_module 4_18ME734.pptxTotal Quality Management_module 4_18ME734.pptx
Total Quality Management_module 4_18ME734.pptx
 

Recently uploaded

PHX May 2024 Corporate Presentation Final
PHX May 2024 Corporate Presentation FinalPHX May 2024 Corporate Presentation Final
PHX May 2024 Corporate Presentation FinalPanhandleOilandGas
 
Arti Languages Pre Seed Teaser Deck 2024.pdf
Arti Languages Pre Seed Teaser Deck 2024.pdfArti Languages Pre Seed Teaser Deck 2024.pdf
Arti Languages Pre Seed Teaser Deck 2024.pdfwill854175
 
10 Influential Leaders Defining the Future of Digital Banking in 2024.pdf
10 Influential Leaders Defining the Future of Digital Banking in 2024.pdf10 Influential Leaders Defining the Future of Digital Banking in 2024.pdf
10 Influential Leaders Defining the Future of Digital Banking in 2024.pdfciolook1
 
Shots fired Budget Presentation.pdf12312
Shots fired Budget Presentation.pdf12312Shots fired Budget Presentation.pdf12312
Shots fired Budget Presentation.pdf12312LR1709MUSIC
 
Getting Real with AI - Columbus DAW - May 2024 - Nick Woo from AlignAI
Getting Real with AI - Columbus DAW - May 2024 - Nick Woo from AlignAIGetting Real with AI - Columbus DAW - May 2024 - Nick Woo from AlignAI
Getting Real with AI - Columbus DAW - May 2024 - Nick Woo from AlignAITim Wilson
 
Pre Engineered Building Manufacturers Hyderabad.pptx
Pre Engineered  Building Manufacturers Hyderabad.pptxPre Engineered  Building Manufacturers Hyderabad.pptx
Pre Engineered Building Manufacturers Hyderabad.pptxRoofing Contractor
 
Falcon Invoice Discounting: Unlock Your Business Potential
Falcon Invoice Discounting: Unlock Your Business PotentialFalcon Invoice Discounting: Unlock Your Business Potential
Falcon Invoice Discounting: Unlock Your Business PotentialFalcon investment
 
2024 May - Clearbit Integration with Hubspot - Greenville HUG.pptx
2024 May - Clearbit Integration with Hubspot  - Greenville HUG.pptx2024 May - Clearbit Integration with Hubspot  - Greenville HUG.pptx
2024 May - Clearbit Integration with Hubspot - Greenville HUG.pptxBoundify
 
PALWAL CALL GIRL ❤ 82729*64427❤ CALL GIRLS IN PALWAL ESCORTS
PALWAL CALL GIRL ❤ 82729*64427❤ CALL GIRLS IN PALWAL ESCORTSPALWAL CALL GIRL ❤ 82729*64427❤ CALL GIRLS IN PALWAL ESCORTS
PALWAL CALL GIRL ❤ 82729*64427❤ CALL GIRLS IN PALWAL ESCORTSkajalroy875762
 
Ital Liptz - all about Itai Liptz. news.
Ital Liptz - all about Itai Liptz. news.Ital Liptz - all about Itai Liptz. news.
Ital Liptz - all about Itai Liptz. news.htj82vpw
 
Progress Report - UKG Analyst Summit 2024 - A lot to do - Good Progress1-1.pdf
Progress Report - UKG Analyst Summit 2024 - A lot to do - Good Progress1-1.pdfProgress Report - UKG Analyst Summit 2024 - A lot to do - Good Progress1-1.pdf
Progress Report - UKG Analyst Summit 2024 - A lot to do - Good Progress1-1.pdfHolger Mueller
 
The Vietnam Believer Newsletter_May 13th, 2024_ENVol. 007.pdf
The Vietnam Believer Newsletter_May 13th, 2024_ENVol. 007.pdfThe Vietnam Believer Newsletter_May 13th, 2024_ENVol. 007.pdf
The Vietnam Believer Newsletter_May 13th, 2024_ENVol. 007.pdfbelieveminhh
 
Abortion pills in Jeddah ! +27737758557, cytotec pill riyadh. Saudi Arabia" A...
Abortion pills in Jeddah ! +27737758557, cytotec pill riyadh. Saudi Arabia" A...Abortion pills in Jeddah ! +27737758557, cytotec pill riyadh. Saudi Arabia" A...
Abortion pills in Jeddah ! +27737758557, cytotec pill riyadh. Saudi Arabia" A...bleessingsbender
 
Falcon Invoice Discounting: Aviate Your Cash Flow Challenges
Falcon Invoice Discounting: Aviate Your Cash Flow ChallengesFalcon Invoice Discounting: Aviate Your Cash Flow Challenges
Falcon Invoice Discounting: Aviate Your Cash Flow Challengeshemanthkumar470700
 
Unveiling Falcon Invoice Discounting: Leading the Way as India's Premier Bill...
Unveiling Falcon Invoice Discounting: Leading the Way as India's Premier Bill...Unveiling Falcon Invoice Discounting: Leading the Way as India's Premier Bill...
Unveiling Falcon Invoice Discounting: Leading the Way as India's Premier Bill...Falcon Invoice Discounting
 
obat aborsi bandung wa 081336238223 jual obat aborsi cytotec asli di bandung9...
obat aborsi bandung wa 081336238223 jual obat aborsi cytotec asli di bandung9...obat aborsi bandung wa 081336238223 jual obat aborsi cytotec asli di bandung9...
obat aborsi bandung wa 081336238223 jual obat aborsi cytotec asli di bandung9...yulianti213969
 
Goal Presentation_NEW EMPLOYEE_NETAPS FOUNDATION.pptx
Goal Presentation_NEW EMPLOYEE_NETAPS FOUNDATION.pptxGoal Presentation_NEW EMPLOYEE_NETAPS FOUNDATION.pptx
Goal Presentation_NEW EMPLOYEE_NETAPS FOUNDATION.pptxNetapsFoundationAdmi
 
The Art of Decision-Making: Navigating Complexity and Uncertainty
The Art of Decision-Making: Navigating Complexity and UncertaintyThe Art of Decision-Making: Navigating Complexity and Uncertainty
The Art of Decision-Making: Navigating Complexity and Uncertaintycapivisgroup
 
QSM Chap 10 Service Culture in Tourism and Hospitality Industry.pptx
QSM Chap 10 Service Culture in Tourism and Hospitality Industry.pptxQSM Chap 10 Service Culture in Tourism and Hospitality Industry.pptx
QSM Chap 10 Service Culture in Tourism and Hospitality Industry.pptxDitasDelaCruz
 

Recently uploaded (20)

PHX May 2024 Corporate Presentation Final
PHX May 2024 Corporate Presentation FinalPHX May 2024 Corporate Presentation Final
PHX May 2024 Corporate Presentation Final
 
Arti Languages Pre Seed Teaser Deck 2024.pdf
Arti Languages Pre Seed Teaser Deck 2024.pdfArti Languages Pre Seed Teaser Deck 2024.pdf
Arti Languages Pre Seed Teaser Deck 2024.pdf
 
10 Influential Leaders Defining the Future of Digital Banking in 2024.pdf
10 Influential Leaders Defining the Future of Digital Banking in 2024.pdf10 Influential Leaders Defining the Future of Digital Banking in 2024.pdf
10 Influential Leaders Defining the Future of Digital Banking in 2024.pdf
 
Home Furnishings Ecommerce Platform Short Pitch 2024
Home Furnishings Ecommerce Platform Short Pitch 2024Home Furnishings Ecommerce Platform Short Pitch 2024
Home Furnishings Ecommerce Platform Short Pitch 2024
 
Shots fired Budget Presentation.pdf12312
Shots fired Budget Presentation.pdf12312Shots fired Budget Presentation.pdf12312
Shots fired Budget Presentation.pdf12312
 
Getting Real with AI - Columbus DAW - May 2024 - Nick Woo from AlignAI
Getting Real with AI - Columbus DAW - May 2024 - Nick Woo from AlignAIGetting Real with AI - Columbus DAW - May 2024 - Nick Woo from AlignAI
Getting Real with AI - Columbus DAW - May 2024 - Nick Woo from AlignAI
 
Pre Engineered Building Manufacturers Hyderabad.pptx
Pre Engineered  Building Manufacturers Hyderabad.pptxPre Engineered  Building Manufacturers Hyderabad.pptx
Pre Engineered Building Manufacturers Hyderabad.pptx
 
Falcon Invoice Discounting: Unlock Your Business Potential
Falcon Invoice Discounting: Unlock Your Business PotentialFalcon Invoice Discounting: Unlock Your Business Potential
Falcon Invoice Discounting: Unlock Your Business Potential
 
2024 May - Clearbit Integration with Hubspot - Greenville HUG.pptx
2024 May - Clearbit Integration with Hubspot  - Greenville HUG.pptx2024 May - Clearbit Integration with Hubspot  - Greenville HUG.pptx
2024 May - Clearbit Integration with Hubspot - Greenville HUG.pptx
 
PALWAL CALL GIRL ❤ 82729*64427❤ CALL GIRLS IN PALWAL ESCORTS
PALWAL CALL GIRL ❤ 82729*64427❤ CALL GIRLS IN PALWAL ESCORTSPALWAL CALL GIRL ❤ 82729*64427❤ CALL GIRLS IN PALWAL ESCORTS
PALWAL CALL GIRL ❤ 82729*64427❤ CALL GIRLS IN PALWAL ESCORTS
 
Ital Liptz - all about Itai Liptz. news.
Ital Liptz - all about Itai Liptz. news.Ital Liptz - all about Itai Liptz. news.
Ital Liptz - all about Itai Liptz. news.
 
Progress Report - UKG Analyst Summit 2024 - A lot to do - Good Progress1-1.pdf
Progress Report - UKG Analyst Summit 2024 - A lot to do - Good Progress1-1.pdfProgress Report - UKG Analyst Summit 2024 - A lot to do - Good Progress1-1.pdf
Progress Report - UKG Analyst Summit 2024 - A lot to do - Good Progress1-1.pdf
 
The Vietnam Believer Newsletter_May 13th, 2024_ENVol. 007.pdf
The Vietnam Believer Newsletter_May 13th, 2024_ENVol. 007.pdfThe Vietnam Believer Newsletter_May 13th, 2024_ENVol. 007.pdf
The Vietnam Believer Newsletter_May 13th, 2024_ENVol. 007.pdf
 
Abortion pills in Jeddah ! +27737758557, cytotec pill riyadh. Saudi Arabia" A...
Abortion pills in Jeddah ! +27737758557, cytotec pill riyadh. Saudi Arabia" A...Abortion pills in Jeddah ! +27737758557, cytotec pill riyadh. Saudi Arabia" A...
Abortion pills in Jeddah ! +27737758557, cytotec pill riyadh. Saudi Arabia" A...
 
Falcon Invoice Discounting: Aviate Your Cash Flow Challenges
Falcon Invoice Discounting: Aviate Your Cash Flow ChallengesFalcon Invoice Discounting: Aviate Your Cash Flow Challenges
Falcon Invoice Discounting: Aviate Your Cash Flow Challenges
 
Unveiling Falcon Invoice Discounting: Leading the Way as India's Premier Bill...
Unveiling Falcon Invoice Discounting: Leading the Way as India's Premier Bill...Unveiling Falcon Invoice Discounting: Leading the Way as India's Premier Bill...
Unveiling Falcon Invoice Discounting: Leading the Way as India's Premier Bill...
 
obat aborsi bandung wa 081336238223 jual obat aborsi cytotec asli di bandung9...
obat aborsi bandung wa 081336238223 jual obat aborsi cytotec asli di bandung9...obat aborsi bandung wa 081336238223 jual obat aborsi cytotec asli di bandung9...
obat aborsi bandung wa 081336238223 jual obat aborsi cytotec asli di bandung9...
 
Goal Presentation_NEW EMPLOYEE_NETAPS FOUNDATION.pptx
Goal Presentation_NEW EMPLOYEE_NETAPS FOUNDATION.pptxGoal Presentation_NEW EMPLOYEE_NETAPS FOUNDATION.pptx
Goal Presentation_NEW EMPLOYEE_NETAPS FOUNDATION.pptx
 
The Art of Decision-Making: Navigating Complexity and Uncertainty
The Art of Decision-Making: Navigating Complexity and UncertaintyThe Art of Decision-Making: Navigating Complexity and Uncertainty
The Art of Decision-Making: Navigating Complexity and Uncertainty
 
QSM Chap 10 Service Culture in Tourism and Hospitality Industry.pptx
QSM Chap 10 Service Culture in Tourism and Hospitality Industry.pptxQSM Chap 10 Service Culture in Tourism and Hospitality Industry.pptx
QSM Chap 10 Service Culture in Tourism and Hospitality Industry.pptx
 

Benchmarking.pptx

  • 3. Group Members No. Name Designation ID No. Registration No. 1. Shiab Hossen Gaddafe Leader 172109 1721723 2. Md. Fuad Hasan Khan Member 172105 1721719 3. Mst. Irin Sultana Jhilik Member 172113 1721727 4. Chhanda Baidya Member 172119 1721732 5. Md. Humaon Kabir Member 172123 1721736 6. Fatema Jannat Chumki Member 172127 1721740 7. Md. Abdul Aziz Member 172131 1721744
  • 5.
  • 6. Six Steps of Benchmarking (Continue…) 4. Studying Others
  • 7.
  • 8. 4. Studying Others (Continue…) A. Benchmarking studies look for information:- • Best-in-class processes • Measurable results
  • 9. 4. Studying Others (Continue…) B. Bench markers use, • Internal sources • Data in public domain • Original research (Questionnaires, Site visits & Focus group) • Combination of sources
  • 10. 4. Studying Others (Continue…) C. Site visits and Interviews (unnecessary) D. Industrial tourism (waste of time)
  • 11. 6. Using the findings Quality 100% Standard Quality of companies product 80% Actual performance Gap
  • 12. 6. Using the findings (Continue…) A. Closing negative gap B. Positive result is important C. The finding must be communicated to the people within the organization
  • 13. 6. Using the findings (Continue…) D. The finding must translate to goals and objectives E. Two group must agree on the change • Process owners • Upper management
  • 14. 6. Using the findings (Continue…) F. Action plan must be developed Seven generic steps for development and execution of action plans: 1) Specify tasks 2) Sequence task 3) Determine resource needs
  • 15. 6. Using the findings (Continue…) 4) Establish tasks schedule. 5) Assign responsibility for each task. 6) Describe expected results. 7) Specify methods for monitoring results.
  • 16. Pitfalls and Criticisms of Benchmarking • Quite Simply • Idea Of Copying Others • Not a Strategy • Not a Substitute For Innovation
  • 20.
  • 23. Goals of TPM Improving equipment capacity. Maintaining for life Support from all areas of operation Using teams for continuous improvement Encouraging input from all employees
  • 24. The Plan • Learning the new philosophy. • Promoting the new philosophy. • Training. • Improvement needs. • Goals. • Developing Plan. • Autonomous work groups.
  • 25. Learning The New Philosophy The managers has to cope with change, by learning the new philosophy.
  • 28. Definition of Training Training is a learning process whereby people learn skill, concept, knowledge and attitude to aid in the achievement of goal.
  • 29. Training Senior Management Middle Management Supervisors Employ ees Don’t just teach the how and also teach the why Learn how to deal with the team. Learn their role. Learn about the various tools.
  • 31. Six major loss areas need to be measured for improvement: Downtime Losses Reduced Speed Losses Poor Quality Losses Planned Unplanned Idling and minor stoppages Slow-downs Process nonconformities Scrap
  • 32. 1. Downtime losses A = ( 𝑇 𝑃 ) × 100 Where, A = availability T = operating time (P-D) P = planned operating time D = downtime
  • 33. 2. Reduced speed losses E = ( 𝐶×𝑁 𝑇 ) × 100 Where, E = performance efficiency C = theoretical cycle time N = processed amount (quantity)
  • 34. 3. Poor quality losses R = ( 𝑁−𝑄 𝑁 ) × 100 Where, R = rate of quality products N = processed amount (quantity) Q = nonconformities
  • 35. Equipment Effectiveness EE = A × 𝐸 × 𝑅 Where, EE = equipment effectiveness/ overall equipment effectiveness (OEE) Note: The target for improvement is 85% equipment effectiveness.
  • 36. Example Problem Last week’s production numbers on machining center JL58 were as follows: Scheduled operation = 10 hours/day; 5 days/week Manufacturing downtime due to meetings, material outages, training, breaks, and so forth = 410 minutes/week Maintenance downtime scheduled and equipment breakdown = 227 minutes/week Theoretical (standard) cycle time = 0.5 minutes/unit Production for the week = 4450 units
  • 37. Solution: Here P = 10 hours/day × 5 days/week × 60 minutes/hour = 3000 minutes/week D = 410 minutes/week + 227 minutes/week = 637 minutes/week T = (P - D) = 3000 - 637 = 2363 minutes C = 0.5 minutes/unit N = 4450 units Q = 15 units
  • 38. R = ( 𝑁−𝑄 𝑁 ) × 100 = 4450−15 4450 ×100 = 99.7% A = ( 𝑇 𝑃 ) × 100 = 2363 3000 × 100 = 78.8% E = ( 𝐶×𝑁 𝑇 ) × 100 = 0.5×4450 2363 × 100 = 94.2%
  • 39. EE = A × 𝐸 × 𝑅 = 0.788 × 0.942 × 0.997 = 0.740 or 74% Clearly the equipment availability should be improved to reach the goal of 85% equipment effectiveness.