This presentaiton on Overall Equipment Effectiveness, Down Time Analytics and Assett Utilization was developed by me and a coleague during my tenure at ISS. Presentation was given to the Chattanooga, TN Chapter of the SME.
The ultimate guide and hidden secrets of OEE. The presentation include how you can utilize OEE to improve productivity, eliminate wastes and increase performance.
Overall equipment efficiency (OEE) is a total productive maintenance (TPM) module; machine capacity is a part of all three terms: availability, performance, and quality. Each term present numerous improvement opportunities.
Presentation contents:
1. OEE calculation to find the improvement opportunities.
2. Relation between wastes and profitability.
3. Review of OEE as a TPM module.
4. OEE metrics - Measurement, Analysis & Improvement.
5. OEE Analysis Process.
6. Following Toyota Way of solving problems.
This document is intended to serve as a guide for
professionals in the High Volume Manufacturing Industries who want to understand what Overall Equipment Effectiveness (OEE) can deliver for their business.
Overall Equipment Efficiency - A Next-Gen KPI for the Manufacturing IndustryInfoStream Solutions
OEE calculation and downtime tracking software helps in downtime tracking and increasing the ROI, professionals are recommending it. Measurement of OEE and the underlying losses helps managers to get a clear idea on how to systematically improve the manufacturing process. https://www.downtimecollectionsolutions.com
The ultimate guide and hidden secrets of OEE. The presentation include how you can utilize OEE to improve productivity, eliminate wastes and increase performance.
Overall equipment efficiency (OEE) is a total productive maintenance (TPM) module; machine capacity is a part of all three terms: availability, performance, and quality. Each term present numerous improvement opportunities.
Presentation contents:
1. OEE calculation to find the improvement opportunities.
2. Relation between wastes and profitability.
3. Review of OEE as a TPM module.
4. OEE metrics - Measurement, Analysis & Improvement.
5. OEE Analysis Process.
6. Following Toyota Way of solving problems.
This document is intended to serve as a guide for
professionals in the High Volume Manufacturing Industries who want to understand what Overall Equipment Effectiveness (OEE) can deliver for their business.
Overall Equipment Efficiency - A Next-Gen KPI for the Manufacturing IndustryInfoStream Solutions
OEE calculation and downtime tracking software helps in downtime tracking and increasing the ROI, professionals are recommending it. Measurement of OEE and the underlying losses helps managers to get a clear idea on how to systematically improve the manufacturing process. https://www.downtimecollectionsolutions.com
Some days ago, I found a discussion about the difference between Efficiency and Productivity.
I tried to answer in that forum from my understanding. In that discussion i called OEE as Productivity.
Some hidden tips about calculating OEE and it's improvement are revealed here. Know how to increase OEE value and improve the productivity of your manufacturing plant. www.downtimecollectionsolutions.com
Automated OEE data collection systems remove the inaccuracies, inefficiencies and bias of manual data collection and data entry, enabling manufacturers to more reliably collect important production data needed to make operational decisions. Production tracking software systems, like ShopFloorConnect, track uptime, downtime, the reasons for downtime, production rate, and piece part counts (when applicable). Running an automated shop floor data collection system is like having a team of manufacturing engineers doing a detailed efficiency study of the entire factory - all the time.
Top OEE & Lean Manufacturing Terms ExplainedJon Addison
A great presentation explaining some of the complex terms used in the technical domain of OEE and downtime tracking.For More Info @ http://www.downtimecollectionsolutions.com/
Production Line OEE (Overall Equipment Effectiveness)Brian Thomas
This webinar session reviews utilizing a proven, lean manufacturing technique, called Overall Equipment Effectiveness, or OEE for short. DST Controls discusses what OEE is and why it is so important for modern manufactures to incorporate it in their operations. Barry Callebaut, a major chocolate producer, had no visibility into their process to determine if the proper amount of ingredients were used in their batch process. An OEE solution by Rockwell Automation was implemented to automatically track material loss, and company estimates they have achieved a $500k net annual gain through resultant ingredient optimization and product consistency.
Explanation of what OEE and what the Six Big Losses are. Contermeasures to reduce the six losses. Calculation of OEE and six loss. How the XL800 tool can help you measure the components of OEE.
Are you thinking enough about OEE? Have you been able to release the full capacity / efficiency of your production equipment?
This Webinar is designed to help you understand how plant connected OEE solutions can become an integral part of your continuous improvement strategy.
Webinar Content:
What is OEE?
Benefits of a plant connected solution
The need to drive culture for Continuous Improvement
Tools you need to drive OEE
Using OEE data to support 6Sigma and Kaizen initiatives
This webinar will be hosted by our Lean Manufacturing Manager Richard Stone. He joins us with over 20 years experience in the Manufacturing Industry, specialising in Lean Manufacturing and Continuous Improvement Programs. Before joining Richard worked as a senior manager and director with some of the UK's leading systems integrators and MES (Manufacturing Executions System) providers, gaining extensive knowledge of OEE and energy targeting & Monitoring solutions.
OEE is best practices way to monitor and improve the effectiveness of your manufacturing processes (i.e. machines, manufacturing cells, assembly lines,etc...)
For more details visit www.mechanicalinventors.com
[Note: This is a partial preview. To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations]
The goal of Total Productive Maintenance (TPM) is to increase equipment effectiveness so that each piece of equipment can be operated to its full potential and maintained at that level. To maximize equipment effectiveness, you need a measurement tool that can help you understand your equipment problems so that you can take steps to eliminate them. The key to this understanding is Overall Equipment Effectiveness (OEE).
OEE is a crucial measure in TPM that tells you how well your equipment is running. It links three elements in one percentage: the time the machine is actually running, the quantity of products the machine is turning out, and the quantity of good output.
LEARNING OBJECTIVES
1. Understand the concept and philosophy of TPM and its relationship with OEE
2. Explain the importance of OEE and how it relates to value-adding work of the factory
3. Understand OEE concepts such as Availability, Performance, Quality and the Six Major Losses
4. Describe the steps of collecting and processing OEE data and reporting results
5. Define approaches for reducing equipment-related losses to raise OEE
To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations
The 7 deadly sins of Overall Equipment Effectiveness (OEE)Claire Healey
Overall Equipment Effectiveness (OEE) is an effective methodology to help improve the productivity of manufacturing processes and accurately measure true plant productivity. Its measureable components are availability, performance and quality.
Having an automated OEE system can provide
accurate data which can highlight significant
production improvement opportunities. However,
OEE can be complex and there are some pit falls
you should avoid to ensure that your expectations
are met and that a rapid Return On Investment (ROI)
is achieved. Explore the 7 deadly sins of OEE…
Some days ago, I found a discussion about the difference between Efficiency and Productivity.
I tried to answer in that forum from my understanding. In that discussion i called OEE as Productivity.
Some hidden tips about calculating OEE and it's improvement are revealed here. Know how to increase OEE value and improve the productivity of your manufacturing plant. www.downtimecollectionsolutions.com
Automated OEE data collection systems remove the inaccuracies, inefficiencies and bias of manual data collection and data entry, enabling manufacturers to more reliably collect important production data needed to make operational decisions. Production tracking software systems, like ShopFloorConnect, track uptime, downtime, the reasons for downtime, production rate, and piece part counts (when applicable). Running an automated shop floor data collection system is like having a team of manufacturing engineers doing a detailed efficiency study of the entire factory - all the time.
Top OEE & Lean Manufacturing Terms ExplainedJon Addison
A great presentation explaining some of the complex terms used in the technical domain of OEE and downtime tracking.For More Info @ http://www.downtimecollectionsolutions.com/
Production Line OEE (Overall Equipment Effectiveness)Brian Thomas
This webinar session reviews utilizing a proven, lean manufacturing technique, called Overall Equipment Effectiveness, or OEE for short. DST Controls discusses what OEE is and why it is so important for modern manufactures to incorporate it in their operations. Barry Callebaut, a major chocolate producer, had no visibility into their process to determine if the proper amount of ingredients were used in their batch process. An OEE solution by Rockwell Automation was implemented to automatically track material loss, and company estimates they have achieved a $500k net annual gain through resultant ingredient optimization and product consistency.
Explanation of what OEE and what the Six Big Losses are. Contermeasures to reduce the six losses. Calculation of OEE and six loss. How the XL800 tool can help you measure the components of OEE.
Are you thinking enough about OEE? Have you been able to release the full capacity / efficiency of your production equipment?
This Webinar is designed to help you understand how plant connected OEE solutions can become an integral part of your continuous improvement strategy.
Webinar Content:
What is OEE?
Benefits of a plant connected solution
The need to drive culture for Continuous Improvement
Tools you need to drive OEE
Using OEE data to support 6Sigma and Kaizen initiatives
This webinar will be hosted by our Lean Manufacturing Manager Richard Stone. He joins us with over 20 years experience in the Manufacturing Industry, specialising in Lean Manufacturing and Continuous Improvement Programs. Before joining Richard worked as a senior manager and director with some of the UK's leading systems integrators and MES (Manufacturing Executions System) providers, gaining extensive knowledge of OEE and energy targeting & Monitoring solutions.
OEE is best practices way to monitor and improve the effectiveness of your manufacturing processes (i.e. machines, manufacturing cells, assembly lines,etc...)
For more details visit www.mechanicalinventors.com
[Note: This is a partial preview. To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations]
The goal of Total Productive Maintenance (TPM) is to increase equipment effectiveness so that each piece of equipment can be operated to its full potential and maintained at that level. To maximize equipment effectiveness, you need a measurement tool that can help you understand your equipment problems so that you can take steps to eliminate them. The key to this understanding is Overall Equipment Effectiveness (OEE).
OEE is a crucial measure in TPM that tells you how well your equipment is running. It links three elements in one percentage: the time the machine is actually running, the quantity of products the machine is turning out, and the quantity of good output.
LEARNING OBJECTIVES
1. Understand the concept and philosophy of TPM and its relationship with OEE
2. Explain the importance of OEE and how it relates to value-adding work of the factory
3. Understand OEE concepts such as Availability, Performance, Quality and the Six Major Losses
4. Describe the steps of collecting and processing OEE data and reporting results
5. Define approaches for reducing equipment-related losses to raise OEE
To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations
The 7 deadly sins of Overall Equipment Effectiveness (OEE)Claire Healey
Overall Equipment Effectiveness (OEE) is an effective methodology to help improve the productivity of manufacturing processes and accurately measure true plant productivity. Its measureable components are availability, performance and quality.
Having an automated OEE system can provide
accurate data which can highlight significant
production improvement opportunities. However,
OEE can be complex and there are some pit falls
you should avoid to ensure that your expectations
are met and that a rapid Return On Investment (ROI)
is achieved. Explore the 7 deadly sins of OEE…
OEE Financial Benefits From Component ImprovementLean Teams USA
OEE has long been used as a Lean measure for the effectiveness of production equipment. It is mainly used to determine where to focus improvement efforts, Availability, Performance, or Quality. This presentation provides an explanation of OEE and a case study of how improvements to each of the OEE factors can demonstrate financial results
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In this Meetup we’ll take a look into the analytics technologies and data science techniques used in a couple of connected transportation applications.
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Furthermore, each group can have unique usability requirements. As companies become more IoT mature and start to plan for “data actionability,” the disadvantages of a homogenous IoT stack or departmental systems become obvious. The best option from a data quality, user acceptance, and ROI perspective is a microservices IoT platform.
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cPrime's latest Agile Meetup discussion will center around methods for how to monitor and validate the performance of agile.
Many firms that have been doing agile can not determine how or if it has had an impact on the company. Agile expert, Jeff Howey will discuss ways to evaluate agile performance. Join our webinar to learn how to identify the benefits of agile and uncover the differences between companies that exhibit "agile-like" behavior and highly functioning teams.
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Chattanooga sme oee down time presentation
1. Agenda
Asset Effectiveness
▪ The discussion on Asset Utilization
• Software Approach
▪ Business Environment
▪ Who cares and why
▪ Success Criteria and Failures
▪ Types of OEE solutions
▪ Should I jump right into an OEE initiative?
▪ Some customer applications
▪ Open discussion
2. Asset Performance &
Effectiveness
What we are hearing from our customers:
► Demand is Down, Profits are Squeezed
► Management is Demanding Lower Costs of
Manufacturing
► Production Management Wants Answers
3. We must manage our business
better, smarter
► Utilities
► Usage Variances
► Waste/Scrap/Rework
► Labor
► Lost Production Opportunity
► Equipment Repair or Replacement
All Represent Risk to Your Business
4. 3
Further Improving Asset
Effectiveness
► Economic Recession
► Reductions in…
▪ Spending
▪ Lending
▪ Payroll
▪ Production
▪ Growth
▪ Capital Expenditure
► Productivity from Existing Assets is Key
5. 4
Asset Utilization science ask...
How do I…
► Increase Asset Availability?
► Improve Equipment Performance?
► Produce Higher Quality Product?
► Reduce Maintenance Costs?
► Extend Asset Lifecycle?
6. OEE Software
Help…
► Reduce unplanned equipment downtime
▪ By tracking & analyzing equipment utilization
► Improve the output of existing equipment
▪ Track & analyze equipment output
(performance)
► Reduce quality related losses (scrap)
▪ Track & analyze first pass yield
All require detailed equipment information!
7. 6
Surveys around the planet
Aberdeen Group Report
► 200 Mfg. Executives
► Diverse Industries
• Oil & Gas
• Mining
• Utilities
• Chemicals
• Manufacturing
• Waste Water
• Pharmaceutical
• Food & Beverage
► Results:
• Best-In-Class = 20%
• Average = 50%
• Laggards = 30%
8. 7
The Survey says…
GAP - Best-In-Class companies
operated 30% higher than the laggards!
KPI World Class Best-In-Class Average Laggards
OEE 85.0% 89% 81% 59%
Availability 98% 87% 76%
laggard companies suffered 22% more
unscheduled asset downtime
What are Best-In-Class doing differently?
Source: Aberdeen Group November 2008
9. 8
The Answers – Best in class…
Advanced Asset Performance 54%
Management & Analysis
44%
Collaboration Between Maintenance & 38%
Production
29%
Risk-Based Approach to Minimize 25%
Asset Failure
17%
0% 10% 20% 30% 40% 50% 60%
Best-In-Class All Others
Source: Aberdeen Group November 2008
10. Plans of mice and men Informational Functions
Work Order or Lot
59% 28%
Status
Real-time KPI
31% 56%
Visibility
Traceability 47% 39%
Performance
42% 43%
Analysis
Overall Equip.
28% 45%
Effectiveness
Genealogy 39% 34%
Compliance
33% 33%
Reporting
Real-time
24% 39%
Capacity Loading
Available-to-
18% 34%
Promise Support
Now
Kanban Signal
13% 28% Within 2 Yrs.
Visibility
0% 20% 40% 60% 80% 100%
Source: ARC Collaborative Production
Management (CPM) Survey Q4 2005
11. 10
A way to define Asset
Effectiveness
Is the asset
Running Time running when
Availability = x 100% its suppose
Net Operating Time to?
Is the asset
Actual Output producing what
Performance = x 100% it was designed
Target Output
to?
Good Output
Quality = x 100% Are the other
Actual Output two doing a
good job?
OEE = Availability * Performance * Quality
Example: (.77)*(.65)*(.98)*100% = 49% OEE
12. Who’s Interested and why?
▪ Executives
• Enable Plant-Plant comparison
• Decision support Capital Expenditures
▪ Plant Managers
• How effective is his team utilizing the assets he
has been given?
• What are the high level areas causing reduced uptime?
• Will he need new capital to meet production goals?
▪ Production Managers
• How effective is my team at scheduling
and running the equipment?
13. Who’s Interested and why?
▪ Line/Area Supervisors
• How are different lines/Areas performing to goal
▪ Maintenance Manager
• Where is downtime originating?
• What equipment is using the majority of my maintenance
budget and resources’?
• Proof that Operations is the real fault
▪ Operators
• How I am performing to expectation “Right Now”
as opposed to yesterday
14. Who’s Interested and why?
▪ Quality
• How are downtime events correlating with Quality excursions?
16. Who’s Interested and why?
▪ Understanding OEE after the fact
▪ Understanding Quality after the fact
What’s the value in understanding OEE in
Real time?
18. Is there something between Up
and Down?
► Companies Lack Contextual Data Required
to make Sustainable Improvements:
▪ Downtime frequency, Cause
▪ Running Below Nominal Rate
▪ Long Changeovers or Cleaning Cycles
▪ Unplanned Maintenance (breakdown)
► True Root Cause is Often Unknown
19. Equipment Efficiency
► Real-time (OEE) Monitoring
▪ Monitor OEE
• Equipment
• Line
• plant
▪ Compare
• machine to machine
• line to line
• Shift to Shift
• plant to plant
▪ Leverages existing automation system for accurate
and timely OEE data
20. Captures the Right Data
► Consistently Capture Asset State Duration
and Reasons
▪ Non-Production States that affect Availability
• Downtime, Short Stops, Setup, Tear-Down
▪ Production States that affect Productivity
• Slow-Downs/Diverts, Starved In-feeds
► Relate Performance, Availability, Quality
21. Delivers the Right Information
► Real-Time Feedback on Asset
Performance
▪ Involving Operators in the Solution
when desirable.
► Pre-Defined Web Reports
▪ Drill Down to the Causes of Lost
Performance
▪ Provide the Tools to make Informed
Decisions
22. Types of OEE Solutions
► Hundreds of OEE solutions on the market
▪ OEM
• May be proprietary (what does that mean?)
• Not Open and therefore cannot leverage beyond specific
implementation
• Not Scalable
• Proprietary client tools
• Specific to a particular equipment type
• Limited ability to relate data to other plant information
▪ Black Box
• Many localized data collection boxes
• No common data store
• Proprietary database and client tools
• Limited ability to relate data to other plant information
23. Types of OEE Solutions
► Open System/Best of Breed
▪ Utilizes existing automation/SCADA equipment
▪ Built using Open databases and client tools
▪ Equipment Type Agnostic
▪ Scalable across lines/plants/Enterprise
24. Approach – Success or Failure
► Mistakes/Failures/Shelf-ware
▪ Its all about the technology
• Software is powerful but w/o an understanding of manufacturing and equipment, little value.
▪ The science of Equipment Utilization and OEE is critical
▪ Lack of Operations buy-in at ALL levels.
• Equipment Operators, Line supervisors, Shift supervisors, Production management
▪ Lack of Executive buy-in – Culture change.
• Plant management, Division management, etc
25. Approach – Success or Failure
► Proven Methodology for success
▪ Change management
• Involve the right people at the beginning of the project
• Paid for requirements/Analysis
• Definition of goals/roles
• Key Stake holders (Executive/Operations/Maintenance/IT/Engineering)
• Functional Requirements
• Define constraints
• Define Assumptions
• Document “as is” condition
• Define “to be” solution
• Pilot project based on the requirements
• Gain and document success, get buy-in, and roll out.
26. Approach – Success or Failure
• Who needs to own a Performance solution for it to be
successful?
• Can this be an IT, Engineering, Automation project?
• Advancements in technology can be deceiving
• No – Operations has to own an Asset Utilization program
• OEE is not a technology solution
• IT/Engineering/Supply Chain can be the facilitator or executioner.
• There are many failures and wasted funds of OEE projects that was killed by
the operator
• May appear to be successful initially but will become “shelfware” in a years
time.
27. Approach – Success or Failure
• Is Optimization an event ?
• An OEE solution is a continuous effort
• Software solutions are good tools but not a miracle worker.
• Diligent, hard work is required to have an effective Asset
Utilization program that succeeds over the long haul.
28. Approach – Success or Failure
Do you need to jump into a full-blown OEE solution..
OR
Are there other steps that should be considered first?
• Start with accurate capture and reporting of true
downtime.
• Begin to establish and collect accurate of reason codes
for those DT events involving the operator as the
primary entry point.
• Focus on understanding your real constraints.
• Decide which equipment to deploy OEE on.
30. Customer Success Stories
► SAB Miller
▪ Complete MES Solution including
Performance
▪ Complete Product Genealogy
▪ Reduced Scrap
Direct bottom line results…
► 3.8% Improvement in Performance Year over Year
► 8% Reduction in Defects
► $1.5M contribution to the Bottom Line
31. Another Customer Success Story
Major Beverage Container Manufacturer
• Leading producer of plastic beverage containers
• Products in such demand they can sell more than they can produce
Direct bottom line results…
► Raised OEE by 3% in first year
► $200,000 ROI on an initial investment of $80,000
► Payback in 5 months
32. More Success Stories
Major Paper Producer - $22 billion annual revenue
• Legacy system relied on manual entry of downtime fault reasons
• Planned large capital expenditure to eliminate production
bottleneck
Direct bottom line results…
► Within 3 months, identified problem areas in
bottleneck machines
► Due to increased efficiency, able to cancel large
capital expenditure (> $1.5 Million)
54. Performance Initiatives: “what is
practical”!!
• How do I get started with a Performance Solution that makes sense for my facility and
experience real success?
• How far do I go? What’s first, what’s second?
• Who needs to own a Performance solution for it to be successful?
• Can this be an IT, Engineering, Automation project?
• Is Performance the same across all types of process types and can I deploy a one-for-all
solution on them all?
• How can I reduce the chance of failure for a Performance deployment?
• Is Optimization an event or a process?
Editor's Notes
As we all know, we are in a challenging economic time. We are hearing from our customers that Orders are Soft, Profits are Being Squeezed.The Front Office is demanding lower manufacturing costs to improve the profitability of what orders do come in by reducing downtime and scrap, and increasing the yield and productivity of existing equipment. In return, Production Management is asking for better information on Downtime Durations and Causes, and the Time spent in Changeover and Setup.They are asking for better information on bottlenecks to improving throughput, and What Products Run the Best on what machines They are asking for information on what lines can be shut down or shifts reduced without affecting delivery of orders, and what Common Equipment is Running Best.They are asking for this information so they can make informed decisions to improve performance, reduce downtime, increase yield, and better manage the costs of manufacturing.The Big Question is, Can you provide the answers to the questions that are being asked?
In order to deliver on budgetary commitments, and remain competitive, we know that the industrial units of businesses need to cut costs in several key areas. From an operational perspective, cost reductions come in many shapes and forms, but let’s face it… hypothetically speaking, you were already operating as lean as you thought you could last year. What can you possibly do differently this year? Especially with fewer available funds?As difficult as it seems, the answer is on the screen in front of us. Businesses are being driven to further reduce costsfor Maintenance, Repair, and Operations. At the same time they’re being pushed to increase productivity with existing assets. Failure do so results in a competitive disadvantage, as well as an overall risk to the long-term viability of the business.
It’s no secret… we’re in an Economic Recession. The real questions at this point are: “How bad is it?” … “How long will it last?”… and “What can we do to survive until things get better?” <CLICK>The financial repercussions of the current economy are hitting us all… where we work… and how we live.From a business perspective, we’re under increasing pressure to make the best use of what we have. Funds allocated for business growth and other capital expenditure are limited, and pressure to make do with what we have is high. <CLICK>With the exception of a few select industries, pressure is also high to control costs and find new ways to extract additional productivity from existing assets.Even in a healthy economy businesses face regular pressure to reduce costs, or “make do with less”. Today, our customers are facing more pressure than ever to deliver these improved results.<CLICK>
We all want to know how to better utilize equipment, produce high quality product for less money, reduce the costs associated with manufacturing, and maximize the lifecycle of our assets. And while this has been important for a long time, in the recent economic climate, these factors have an even greater focus.
Let’s take a couple of minutes to discuss how successful companies perform in comparison to their not-so-successful counterparts. Then we’ll take a quick look at what the successful companies are doing better, and how they’re dealing with the pressure to increase Return On Assets, or ROA. The Aberdeen Group conducted an independent survey of 200 manufacturing executives from diverse industries in November 2008.Businesses were queried regarding how their assets were currently performing. They were also polled in regards to what initiatives and activities they were focusing on in order to wring additional productivity from these assets.The responses were divided into 3 categories. The top 20% were deemed “Best-In-Class”, while the middle 50% and lower 30% were termed “Average” and “Laggards” respectively.In you're interested, this report is currently available for free from the Aberdeen Group web site.
The Aberdeen Group Asset Performance Management Report found that the assets of Best-In-Class companies operated 30% higher than the laggards!They also found that the laggard companies suffered 22% more unscheduled asset downtime than their Best-In-Class counterparts.If you’re like me, you can’t help but ask yourself, what kind of impact would a difference like this have on my operation?<CLICK>So… the obvious question is… What are those Best-In-Class companies doing differently from the Laggards?<CLICK>
Here are the answers…54% of Best-In-Class companies are engaged in advanced asset performance & management strategies.38% of Best-In-Class companies are pursuing improved collaboration between Maintenance & Production groups.25% of Best-In-Class companies are taking a risk-based approach to asset management. In other words they are allocating additional resources, at a higher level, to effectively operating and maintaining critical assets.
Do you have a Operator Production Report that looks like this?Placing an asset into production can cost hundreds of thousands if not millions of dollars, but the tools used for measuring the performance of the asset are often an afterthought. Manufacturing can have relatively simple methods for determining the productivity or performance of a particular asset. Sometimes this metric is as simple as the quantity of product produced in a shift or day. This quantity often captured on a clipboard and sent to a production office for data entry into a spreadsheet that tracks the quantity of product produced by shift or by day. In order to get more detailed production information , Data for reporting downtime of the asset often consists of recording stoppages in other fields of the clipboard. Sometimes there is a space on the clipboard for a reason for the production stoppage. Reports derived from data provided on the clipboard are then assembled and distributed the next day.The quality of the data provided is a function of the attention to detail of the operator and their intimate knowledge of the production equipment. In some cases it misses capturing the right dataSuch as:How does the Operator Shift Sheet Consistently capture Downtime Duration and Causes, or even short or micro-stops?How does the Operator Shift Sheet Capture Set-up/Tear-Down/changeover Time?How does the Operator Shift Sheet help Identify Bottlenecks?Start and End times are often just estimates, as the data is usually entered after the asset has been placed back into production. Short stops are not always entered, or even detected if the machine self clears a minor jam or backup.The ability to accurately transcribe this production data is a function of operator penmanship, consistency in reasons, spelling, and cleanliness of the workspace. This Operator Production Report and others like it are a major reason Production Management lacks the consistent Contextual data required for improving Equipment efficiencies.
A Production Asset has many more states than Running or Stopped, Up or Down.Simply tracking an Up-Time or a Down-Time is insufficient, as the total available time for manufacturing is actually broken into many states. These states must be Accurately and Consistently tracked and reported to be able to understand where losses in the system occur. The asset can be Running at Target Production rate, Running at a reduced production rate, in Setup, Change over, or Cleaning state. It could be out of production for scheduled maintenance, down for breakdown or unscheduled maintenance. It could be off-line due to safety meetings or training. It could be running at rated speed but creating scrap at rated speed.Personnel may be operating the machine incorrectly due inadequate training or obsolete procedures and SOP’sManual data capture methodologies generally fail to provide the detailed information in context necessary to improve performance, and it is difficult transcribe what data is captured in a consistent manner.Without contextual information, the root causes of why the production asset is in these different states is unknown and improvements leading to increased productivity can be difficult achieve.Does any of this sound familiar to you?
Unlike manual OEE tracking systems, Wonderware Performance Software works with your existing automation system. This provides the accurate, reliable, and highly granular OEE data that plant managers and operators need to gain awareness of their equipment’s efficiency. This allows them to determine where they can make improvements in the shortest amount of time and with the lowest amount of cost.Because of consistency in OEE Tracking,Wonderware Performance Software allows you to compare OEE between similar production assets, production lines or entire plants.
A marvelous thing happens when operators have high quality and timely equipment efficiency data – they tend to operate their equipment more efficiently.By monitoring OEE and displaying this data in real-time to operators, this allows them to see their effect on the efficiency of their operating decisions.By displaying Production Event Counts and Durations, Operators can see what Production Events have affected their performanceBy displaying Production Progress, the operator can see their Current Production, their Production Target, and a Projected (or predicted) FinalProduction estimate , given their Current Production Rates and the time left in the shift.
With Wonderware Performance 3.5 you can capture in real time the critical manufacturing information required to improve equipment performanceImproving Asset Performance requires consistent and accurate Capture of Asset State Duration and Reasons. There are Non-Production States that affect Availability such as:Downtime, Short StopsSetup, Tear-Down Changeover Cleaning, CIPThen there are Production States that affect Productivity such asSlow-Downs/Diverts Recycle orStarved In-feeds, There must be an ability to relate Performance against Rate Targets, Availability , and first passQuality. The information collected must allow for comparisons of Performance for similar Production Assets so that the best performing and worst performing assets can be identified.This means that Production Scheduling can be more accurate, and Maintenance investments can be better allocated..
Finally, the data must be transformed into actionableinformationThis means involving Operators and providing them with real time information on their performance, and Key Performance Indicators for Shift Supervisors and Production Management. It needs the information in Manufacturing context so that reports yield the right information on lost production and performanceAnd then Everyone must be provided with the right information at the right time, delivered in the right form that allows for every individual in an organization to make informed Decisions.
So How are our customers using Performance Software to maximize their Production?SAB Miller used Performance Software. Their goals were to maintain existing Capacity while isolating processes responsible for Material Loss. <Click>What SAB realized was a 3.8 % improvement in Performance year over Year. They saw an 8% reduction in first pass defects. That translated to a $1.5 Million contribution to their bottom line.
A major international beverage container manufacturer implemented aperformance solution. This customer was Production Limited is that they could sell more than their equipment was able to Produce.<Click>They also saved over $200,000 in the first year and improved their OEE by 3%, and paid for the system cost in only 5 months. They are currently expanding their system to generate even higher benefits for their plant.This is fairly typical. Manufacturers often implement anEquipment Performance solution on a trial or limited basis and within 12 months they are expanding their system to other areas of the plant.
Here is another story which focuses on the elimination of bottlenecked machines due to detailed information from Equipment Performance software. This Major Paper Producer used a system of manual entry of downtime Fault reasons. They had planned a large capital expenditure toeliminate a suspected production bottleneck. As an interim measure, this Paper Producer implemented Equipment Performance software.<Click> The information collected identified the root cause of the bottlenecked machines. Once the bottlenecks were removed the company was able to cancel a costly capital expenditure. Doing more with existing assets is a request by many companies. Identifying the cause of production Bottlenecks allows the same equipment to produce more.
This screen indicates the line performance overview screen, where each entity is represented by a picture of the devise.Grey means that not connected to PLC, Green indicates running, red = stopped and yellow means held (or in downtime). The counters indicates the production count for the entity. The progress bar at the bottom shows the progress of work against the quantity scheduled.
This is a drill down screen from clicking on the entity. On the left you have the PackML visualization, which indicates the mode of the machine, the state of the machine the three components of OEE and the current reason if the entity was in held.The bottom is a pareto breakdown of the categorized reason. The reason code were categorized for easy identification and to be inline with the breakdown on the local entity operational panel.
By clicking on the reason code group one can get a view whereby the individual reasons for downtime can be seen.
This screen shot was taken before a correction was made to the unit of measure was changed, and it indicates the production per day for the crating robot. Note the item code is as per the scheduled worksorder from SAP. Because the plant is still in ramp up not SAP worksorders are scheduled and thus the system creates its own worksorder to track data.
This report is what the user can see at any time using the wonderware information server. Managers and log on to the web page and get these types of pre configured reports
M. DelfuntHere are some thoughts to consider for the topic of practicality for Performance management. Most manufactures today have some solution in place that they would state gives them insight into how optimally the plant is running. However, the majority of these solutions are not automated. Automated meaning that the ability to capture real downtime or other performance metrics are mostly paper and Excel based. So while the executives have [some] visibility into equipment utilization, this information is rarely accurate and doesn’t give them the power to do any real analysis. Even in smaller, low tech organizations every plant manager will state that he has visibility into downtime on his desktop. These are mostly custom solutions provided by IT. That same manager fundamentally knows that he rarely gets the whole story and is left with the task of trying to arbitrate between Maintenance and Production about the root cause. That being said, what could be some practical steps for an organization to move, from either nothing or a manual system, to something that’s practical. Some fundamental question might be: Do we need to install a full-blown OEE solution today or are there other steps that should be considered first?Part of my plant is continuous and others are discrete. Does an Performance solution look the same for both processes? Do we know what equipment we should try and monitor OEE on or should we monitor OEE on all of them? Do we have a good understanding of where our real bottle neck is or do we just presume it? Does it matter to operations what the system looks like, and therefore how they interact with it, or can this be an IT rollout? How can we insure adoption? I have read that many of these OEE projects don’t do anything for my plant in the long run. We have all these reports but nothing is any better than is was before we spent the money. Is this what I can expect? We have some pretty sharp automation engineers in our organization who can configure PLC’s, HMI, Historians, etc. so I’m sure we can roll out a equipment utilization system; after all, its just clicking on the right boxes. Is this an accurate reflection of reality?I see and read about all these hi-tech solutions in the magazines and on the web that some Fortune 25 manufactures are doing. Is this type of solution for me and how can I afford it? Could we deal with a solution like this organizationally and culturally? Some thoughts for the above. For “A” above, in a discrete manufacture, the idea of installing a full-blown solution to measure OEE on everything might not be wisdom. Before a customer gets value from OEE, they first need to be able to really understand where downtime is coming from in the system and use that information to begin to get Operations and Maintenance on the same page with respect to root cause. Having Operators coding reasons, combined with exact time that equipment was down through the automation, will consume several weeks of “enlightenment” for management. OEE is probably not on the radar during this season and efforts to measure it will probably produce useless numbers that could discredit the overall initiative. The downtime exercise above will eventually lead to a team asking some questions about what constitutes real downtime on the equipment. Is it a simple up/down decision? Are their variations of up/down? Can this machine be running but not utilized properly? The answer is most cases is yes but how can we discern from the automation whether its effectively down (evidenced by it not being properly utilized due to external factors) or really down (evidenced by a actual failure) ? Gaining an understanding of this can add a second tier of “realization” for management that was otherwise not obvious. A next step might eventually lead to the question of Utilization. This is not the same in every industry due to the type of process and equipment. Utilization is a bigger component in discrete manufactures than continuous. In most continuous processes, the equipment is running 24x7x365 and there is backup equipment for many of those. In a discrete facility, its possible that some equipment should be running that is currently not and we want to gain an understanding of why or why-not. Later on as we begin to think about calculating OEE, we want to do so based on whether that particular equipment was actually scheduled to run before we start docking our reported OEE number based on non scheduled equipment. Regardless of downtime, management will usually get some “aha” moments from seeing what equipment is not running because it was never scheduled to run. This is often not the same as he gets on his paper reports. As everyone knows, one of the optimization questions that transcends all facilities is are we able to produce our maximum theatrical rate on a particular piece of equipment. And, by the way, much of the equipment today has been optimized and optimized with modern controls to where its now running at 110%, 120% or higher than original design capacity. Each time a machine hits a new capacity record, we get more insight into what is possible and we establish a new theatrical max. Our equipment Utilization solution need to help us understand everywhere this is possible and allow us to adjust. Eventually – but not necessarily last, we begin to ask some questions about how all this is impacting quality in our process. In some respects, a quality product is produced when we are able to manage all the other variables in such a way that we get consistent results within the customers specifications. Although in some cases downtime and availability may not necessarily impact the quality of a product, in other cases it does. A machine running too fast can produce scrap product. A machine operating at less than optimal temperature can produce scrap. Including quality data into our system can begin to help us understand the inter-relational impact that all the variables have on our ability to produce a good product that can be delivered on time, and made as cost effectively as possible. So, OEE is that “singular” measure that attempts to capture all that into one number so we can get a simple view into our ability to do this relative to the next line, next plant, next industry, etc. So, is it possible to get to the that magical “OEE” number after four weeks of deployment? Its possible, but not likely in most cases and trying to do so may actually work against your initiative. Remember OEE is a optimization science in manufacturing, not a software solution. Software can be invaluable in the process but leaving out the science simply leaves you with a video game that will eventually wind up on the shelf. The idea that one software solution that can help a manufacture understand Performance across Discrete, Batch, and Continuous operations may not be practical. Depending on what you mean when you say “Performance” the level of science required to analyze how well a piece of equipment is performing may get increasingly complex and unable to be measured by simple up/down or even rate information. Its not uncommon in many industries to hear about equipment or processes not being down for two years and even more. PCS Nitrogen in Augusta has one of the longest running facilities in the nation without unplanned downtime; they measure it in years. Here, the science of Equipment Reliability begins to take the front seat in the Equipment Utilization conversation. In facilities like these, the idea of Performance is more difficult articulate relative to discrete. How well a piece of equipment is operating may involve many factors such as raw material composition, ambient temperature, exothermic and endothermic reactions, flow rates, pressures, temperatures, controlled releases and losses, gradual decay or buildup of process mediums, etc. In some of these cases, the word Performance may imply a algorithm that is constantly evaluated every second. Whether all these complexities can be simplified into a simple number such as OEE may be up for debate. OEE purest will argue that they can and it may be so. The question is whether its practical and does it add value. The idea that OEE is the only measure of whether a piece of equipment is running a maximum is probably not a best practice. One may want to utilize more than one type of software solution depending on process type. I may find it more beneficial to run an online modeling and optimization software solution for my continuous and Batch operations and a another on by discrete operations. I may us the latter to summarize an overall “OEE” number of sorts for the whole area or plant for reporting purposes. So, if you want to deploy Equipment Utilization software in your facility and want that software to be used across all processes, then go for it. However remember that it may take considerable customization to make one shoe fit all. This doesn’t mean its not worth doing or that you cannot get value from that approach; in many cases it is and you can if this helps solve your real business objectives. Many Performance solutions are installed with the idea that they should try and measure OEE on all their equipment. This might be, in some cases good reason to do this depending on the equipment in a particular facility and how they interrelate. In cases where you have equipment in a process line, its usually not beneficial to do this and in fact, may cause more problems than it helps by falsely conveying Performance metrics that are not relevant. Its usually to establish your true bottle next and measure OEE on that piece of equipment. Examples like this highlights the value the science of Equipment Utilization brings to the conversation as opposed to focusing on software configuration. Although IT, Supply Chain, Plant automation or Engineering departments may be given responsibility for a Performance project, the failure to recognize that this is an Operations initiative can be a major mistake. As stated multiple times already, Equipment Utilization is more about the science of manufacturing optimization than IT; IT is only the facilitation engine. Any long-term success for a Performance solution will be grounded in Operations and should have buy-in from that group from bottom to the top. Many failures and wasted capital has been expended on solutions that were ultimately rejected by Operations. And if the operators don’t like it, it will fail sooner or later. Best practice would involve getting the right people involved in the project up front and keep them involved all the way to the end. The ease of configuring software these days (as opposed to writing code 20 years ago) creates false ideas that just because its software, its an IT gig. Its for IT to be the facilitating organization but the understanding required to make the right business decisions needs to start with operations. Best practice today usually involves some sort of change management program that incorporates multiple disciplines from operations and maintenance to the executive level. A successful Performance solution will typically involve a culture shift and therefore needs buy-in from all levels. (and ”F”) Its true that many OEE solutions add no value a year or two later. There are many reasons why and most all involve a poor approach from the onset. The usual are:Failure of a sound deployment methodology based on best practices and optimization science.Thinking success is all about the software.Lack of buy in from operations and maintenance. A facility in the Southeast recently declared a failure of significance and although, as usual, there was blame placed in many areas including technology, the real failure was due to a corporate driven initiative, run by corporate people, defined by corporate, implemented by corporate, but paid for by the local plant with no attempt to include them in the design process. So, what did the plant say about their new plant-wide Performance solution ? Its ugly, its not what we wanted, it doesn’t work the way we work, it doesn’t give us real information that we didn’t already have, we don’t trust it. Its certainly plausible that a poor software pick can be the cause of failure depending on the project requirements but this is not the main target. There are also many failures due to the idea that somehow the software solution was going [fix] all our problems. The reality is that, like most other software solutions, a Performance solution is a tool that must be utilized by trained workers with a desire to use that tool to improve their business. If management doesn’t embrace that idea and create the culture to support it, its all for not. Optimization is a process, not an event. It’s a process that never ends and extends way beyond software or control solutions. Although optimization can be greatly enhanced by these systems, other approaches such as mechanical, procedural, raw materials, supply chain, etc are equally important in the optimization equation. So, there are not many quick-fixes that will negate the process of hard work, careful and diligent study of the data, trial and error, modeling, and refining. Therefore, take a methodical approach to understanding Performance in your facility. Don’t set your sights so high that you cannot succeed, Start with the fundamentals and build on those. Pick software solutions that facilitate the “grow as you go” philosophy. A Beast of Breed approach may or may not offer you the best value. If the Best of Breed doesn’t integrate into your other systems and your overall strategy, then its not “best” for you. Best Practice today is a “bite size” practice.
