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What’s OEE
(Overall Equipment Effectiveness)?
3/12/2024 1
Background
Management
Operational wise Business wise
Overall Equipment
Efficiency
Asset Utilization
Asset Utilization and OEE indices
show how the factory is being managed
in the operational and business prospective
3/12/2024 Hamed.Ali.Mohamed2@gmail.com 2
OEE Definition
OEE is an index which calculates the equipment
operating state and judges if the equipment is utilized at
its fullest.
‫المعدة‬ ‫ان‬ ‫االعتبار‬ ‫فى‬ ‫أخذين‬ ‫للمعدة‬ ‫التشغيلية‬ ‫الحالة‬ ‫بحساب‬ ‫يقوم‬ ‫دليل‬
‫لها‬ ‫األقصى‬ ‫بالحد‬ ‫مستخدمة‬
3/12/2024 Hamed.Ali.Mohamed2@gmail.com 3
OEE
Calculation
Overall equipment efficiency
=
Availability x Performance rate x Quality Products Rate
It is calculated by multiplying together the equipment's
.availability, performance rate and quality rate
An overall assessment in terms of the three attributes of
time, speed and quality, it indicates the proportion of time
for which the equipment is actually adding value.
3/12/2024 Hamed.Ali.Mohamed2@gmail.com 4
Availability
indicates the extent downtime
Performance Rate
indicates the scale performance losses
Quality Products Rate
indicates size of products defects losses
OEE
Calculation
3/12/2024 Hamed.Ali.Mohamed2@gmail.com 5
Loading Time
Operating Time
Net Operating
Time
Downtime
Losses
Performance
Losses
Shutdown
Losses
Value Operating Time
Defects
Losses
OEE
indices
16
HPC
TPM
Losses
Total Time
OEE Calculation
3/12/2024 Hamed.Ali.Mohamed2@gmail.com 6
OEE
Calculation
Availability = Loading time - Downtime x 100
Loading Time
Performance = Standard Cycle time x Products units Processed x 100
Operating Time
Quality = Products units Processed - Defects units x 100
Products units Processed
Loading Time
Operating Time
Net
Operating
Time
Value
Operating
Time
Downtime
Losses
Performance
Losses
Defects
Losses
Shutdown
Losses
Notes: a) Standard Cycle Time: Based on Designed,Maximum Speed (as defined in losses definition)
b)Defects units: Include not only the waste but also the quantity of rework
c) OEE Calculation Area
OEE: Availability x Performance x Quality
Total Time
3/12/2024 Hamed.Ali.Mohamed2@gmail.com 7
16 Losses Classifications
Loading Time
Operating Time
Net
Operating
Time
Value
Operating
Time
Downtime
Losses
Performance
Losses
Defects
Losses
Shutdown
Losses
1- Equipment Breakdown
2- Changeover
3- Cutting Blade Change
4- Start-up / Ramp down
9- Management
10- Operational Motion
5- Minor Stoppages
6- Speed
11- Line Organisation
12- Logistics
8- Shutdown
7- Defects and rework
13 - Measurement and Adjustment
14 - Energy
15 - Maintenance spare parts
16 - Yield
Total Time
3/12/2024 Hamed.Ali.Mohamed2@gmail.com 8
Losses Definition
• Equipment Breakdown
Unplanned equipment stoppage more than
10 minutes
• Minor Stoppage
Unplanned equipment stoppage less than
10 minutes
3/12/2024 Hamed.Ali.Mohamed2@gmail.com 9
Losses Definition
• Change over
Time taken for a change over from last
product at nominal speed and quality until
the first product of the next run at nominal
speed and quality.
• Cutting blade change
time taken to change items used in the
process which have worn out, e.g. blades,
reels, etc...
3/12/2024 Hamed.Ali.Mohamed2@gmail.com 10
Losses Definition
• Start up / Shut down
Start up is total time taken to achieve
nominal speed and quality.
Start up time is measured after any planned
stoppage not including change over.
Shut down is total time taken to shut down
the line and establish appropriate conditions
for an effective start up.
3/12/2024 Hamed.Ali.Mohamed2@gmail.com 11
Losses Definition
• Speed
Speed loss from running the line at a speed
less than standard cycle time for a particular
product.
• Defects and Rework
Time lost in producing non-conforming
product or time to rework non-conforming
product.
3/12/2024 Hamed.Ali.Mohamed2@gmail.com 12
Losses Definition
• Shutdown
This is caused by stopping the equipment
for periodic planned activity like
maintenance or inspection or for legal
inspection during the production stage.
This also includes holidays, weekends, no
plan, modifications, trials, etc...
3/12/2024 Hamed.Ali.Mohamed2@gmail.com 13
Losses Definition
• Management
These are waiting time losses generated by
management problems, e.g failure to
provide materials, spare parts, waiting
instructions, utilities, etc...
• Operational motion
Losses due to difference in skills levels or to
inefficient layout.
3/12/2024 Hamed.Ali.Mohamed2@gmail.com 14
Losses Definition
• Line organization
Losses due to shortage of operators, e.g.
during the break.
• Logistics
Time wasted due to inefficient delivery of
raw and packaging materials, product to the
line and removal of finished product from
the line.
3/12/2024 Hamed.Ali.Mohamed2@gmail.com 15
Losses Definition
• Measurement and adjustment
Frequent measurement and adjustment to
prevent recurrence of problems, e.g. quality
Routine and unexpected cleaning and
sanitisation are also considered here.
3/12/2024 Hamed.Ali.Mohamed2@gmail.com 16
Background
Management
Operational wise Business wise
Overall Equipment
Efficiency
Asset Utilization
Asset Utilization and OEE indices
show how the factory is being managed
in the operational and business prospective
3/12/2024 Hamed.Ali.Mohamed2@gmail.com 17
Asset Utilization
• Definition
An index which measures utilization of the lines
taking into account the impact of the factory
shutdown on availability.
• Calculation
Asset Uitilisation = Loading time x 100 (%)/Total
time
Capacity planning
How efficiently
is the line being utilized
from business
point of view
3/12/2024 Hamed.Ali.Mohamed2@gmail.com 18
3/12/2024 Hamed.Ali.Mohamed2@gmail.com 19
The 6 big losses
3/12/2024 Hamed.Ali.Mohamed2@gmail.com 20
100%
Capability
Speed Loss
Start-Up
Loss (warming up +
ramp up to full speed)
Minor Stoppages
and Idling
Defects Failures Setup &
Adjustment
Time
Shut-down
Loss (ramp
down speed
cool down)
The 6 big losses visualized
3/12/2024 Hamed.Ali.Mohamed2@gmail.com 21
OEE Definitions
Loading Time
Utilization Time
Down-
time
loss
Perform
ance
loss
Value
Added
Time
Defects
loss
Net
Utilization Time
Failures / breakdown
Set-up /changeover
Start-up / shut-down
Minor stoppages /
Idling
Reduced speed
Quality defects /
Scrap & Rework
Operating (Shift) Time
Shut
down
loss
No personnel, no
materials, no orders,
planned maintenance
OEE = Value Added Time
Loading Time
=% efficiency of line in the loading time
Shut down losses such as planned maintenance
/ meals / rests have no effect on OEE!
Availability = Utilization Time
Loading Time
= % of loading time that line was running
Performance rate = Net Utilization Time
Utilization Time
= Actual Production___
Utilization Time * Std. speed
= % of potential production that was made
Quality rate = Value Added Time
Net Utilization Time
= Good Production
Actual Production
= % of actual production that can be sold
3/12/2024 Hamed.Ali.Mohamed2@gmail.com 22
Loading Time
Utilization Time
Down-
time
loss
Perform
ance
loss
Value
Added
Time
Defects
loss
Net
Utilization Time
Equipment
Failures / breakdown
Set-up /changeover
Start-up / shut-down
Minor stoppages /
Idling
Reduced speed
Quality defects /
Scrap & Rework
6 Big losses
Availability:
=loading time - downtime x 100 %
loading time
example:
available time = 8 hours=480 min
meal break = 20 min
loading time = 480-20= 460 min
downtime = 60 min
= 460 min - 60 min = 87%
460 min
Calculation
Availability
3/12/2024 Hamed.Ali.Mohamed2@gmail.com 23
Measuring availability
Data Collection Sheet
Availability = G / (G + F) =335/(335+85)=79.8%
3/12/2024 Hamed.Ali.Mohamed2@gmail.com 24
Measuring availability
Data Collection Sheet - Codes
Type Code
Planned Maintenance PM
Meals & Rest MR
Meetings MT
Training TR
No Materials NM
Shut-down time
Type Code Machine Code
Electrical E Bottle Infeed I
Pneumatic P Filler F
Motor M Capper C
Control system C Labeller L
Failure = T ype code + Machine code
Type Code
CO Product A->B AB
CO Product A->C AC
CO Product A->D AD
color/size change etc.
- - - - -
Adjustments AX
Cleaning (not scheduled) CL
Set-up C/O Adj.
Type Code
Warming up time WU
1/2 Ramp up time RU
1/2 Ramp down time RD
Cool down time CD
Start up-shut down
• Example codes for shut down losses = those items excluded from OEE
• Example codes for down time losses = those items included in OEE-availability
3/12/2024 Hamed.Ali.Mohamed2@gmail.com 25
Performance rate:
= actual production x 100 %
utilization time * standard speed
example:
standard speed = 2 products / min
actual production = 400 products
utilization time = 400 min
400 products = 50 %
400 min * 2 products /min
Performance rate
Loading Time
Utilization Time
Down-
time
loss
Perform
ance
loss
Value
Added
Time
Defects
loss
Net
Utilization Time
Equipment
Failures / breakdown
Set-up / changeover
Start-up / shut-down
Minor stoppages /
Idling
Reduced speed
Quality defects /
Scrap & Rework
6 Big losses Calculation
3/12/2024 Hamed.Ali.Mohamed2@gmail.com 26
Measuring performance rate
• Speed loss rate = Set speed
Standard speed
• Minor stoppage loss rate = Actual production
Utilization time * Set speed
•The “set speed” is the speed as set on the machine
•The standard speed is max speed of the
“bottleneck” machine making the particular
product based on:
• spec: “designed speed”/“Name Plate Capacity”
•or highest speeds obtained in other factories
•or run machine at top speed and measure it
• Performance rate = minor stoppage loss rate * speed loss rate
= Actual production * Set speed = Actual production
Utilization time * Set speed * Standard speed Utilization time * Standard speed
Note: The minor stoppage loss rate accounts for all non recorded downtime which consists
mainly of the minor stops = failures < 5 min, non-recorded speed variations and idling (line is
running without product being produced on the line)
If possible try to count the number of small stops on each machine and identify the causes
3/12/2024 Hamed.Ali.Mohamed2@gmail.com 27
Type Code Machine Code
Bottle Jam J Bottle Infeed I
Bottle Broken B Filler F
No Cap C Capper C
No Fill F Labeller L
No Label L Palletizer P
Minor Stops = T ype Code + Machine Code
Measuring performance rate
Data collection sheet
• Example codes for minor stops
Speed loss rate = I / H = 47.1 / 54.2 = 86.9%
Minor Stoppage Loss rate = L / K = 15400 / 15775 = 97.6%
Performance rate = L / J = 15400 / 18150 = 84.8%
3/12/2024 Hamed.Ali.Mohamed2@gmail.com 28
Quality rate:
actual _ defective
= production production x 100 %
actual production
example:
actual production = 400 products
defective production = 8 products
(scrap+rework)
= 400 products - 8 defects = 98%
400 products
Quality rate
Loading Time
Utilization Time
Down-
time
loss
Perform
ance
loss
Value
Added
Time
Defects
loss
Net
Utilization Time
Equipment
Failures / breakdown
Set-up / changeover
Start-up / shut-down
Minor stoppages /
Idling
Reduced speed
Quality defects /
Scrap & Rework
6 Big losses Calculation
3/12/2024 Hamed.Ali.Mohamed2@gmail.com 29
Measuring & Calculating
Quality products rate
Defects
(Scrap +
Rework)
Quality Rate = Actual production - Defects = Good production = 14900 = 96.7%
Actual production Actual production 15400
Good production
Output of filled bottles in box on pallet Actual production =
Input of empty bottles
Defects
(Scrap +
Rework) Defects
(Scrap +
Rework)
Defects
(Scrap +
Rework) Defects
(Scrap +
Rework)
3/12/2024 Hamed.Ali.Mohamed2@gmail.com 30
OEE = Availability x Performance rate x Quality rate
= 0.87 x 0.50 x 0.98 x 100% = 42.6 %
= Good Quality Production = 392 = 42.6%
Loading Time * Standard Speed 460 * 2
Overall Equipment Efficiency
Availability:
= loading time - downtime x 100 %
loading time
example:
loading time = 460 minutes
downtime = 60 minutes
460 min - 60 min = 87%
460 min
Performance rate:
= actual production x 100 %
utilization time * standard speed
example:
standard speed = 2 products / min
actual production = 400 products
utilization time = 400 min
400 products = 50 %
400 min * 2 products /min
Quality rate:
actual _ defective
= production production x 100 %
actual production
example:
actual production = 400 products
defective production = 8 products
(scrap+rework)
= 400 products - 8 defects = 98%
400 products
3/12/2024 Hamed.Ali.Mohamed2@gmail.com 31
-- Meal breaks
-- Set-up / cleaning / changeovers
-- Start-up & shut-down
-- No Production orders / plan
-- Scheduled modifications / maintenance
-- Trials / Test production
-- Failures / Breakdowns
-- Minor stoppages / idling
-- Decreased speed
-- Quality defects/scrap &rework
Effective Time =
Value Added Time
Operational
Time
Loading
Time
Utilization
Time
Production
Time
Routine
Production
Stoppages
Unexpected
Stoppages
Performance
loss
Defect loss
Downtime loss
Pamco versus TPM loss analysis
3/12/2024 Hamed.Ali.Mohamed2@gmail.com 32
Pamco versus TPM loss analysis
• Pamco’s OE includes lunch break as routine stoppage.
TPM’s OEE does not include meal breaks as down
time loss. Therefore OEE >= OE
• To confirm to Unilever Pamco include the meal
breaks into TPM’s down time loss so that OE = OEE.
• Monitoring each of the six losses individually enables
calculation of Pamco OE/PE and TPM availability,
performance rate and quality product rate as well as
generation of a loss tree showing all 6 big losses
• Knowing each of your 6 big losses is more important
for improvement than knowing your OE or OEE!!!
3/12/2024 Hamed.Ali.Mohamed2@gmail.com 33
Loss
rate
Time
* Restoration type
countermeasures are needed
to reduce the loss rate to its
earlier level
* Improvement type
countermeasures are needed
to reduce the loss rate to its
limit
Sporadic
loss
Limit
Chronic
loss
Sporadic versus chronic loss
3/12/2024 Hamed.Ali.Mohamed2@gmail.com 34
Loss cause structure
• Sporadic Loss
– Single Cause
• One cause is responsible for loss
• Chronic Loss
– Multiple cause
• There is one triggering cause, but there are
many different causes which change each time
– Compounding Cause
• One cause alone does not trigger the loss, but
a loss is created when various causes are
compounded. The combination of causes
changes each time
Cause
Cause
Cause
Cause
Cause
Cause
Cause Cause
Chronic losses can only be eliminated by identifying
and taking countermeasures against all causes !
3/12/2024 Hamed.Ali.Mohamed2@gmail.com 35
The production floor is a source of losses
6 big losses (failures, minor stoppages, defects, start-up, set-up, speed)
We cause the losses ourselves
Circumstances and logical situations exist that cause losses, but these
losses can not be discovered directly
Symptoms of failures are not clear
Wear and tear is not evident
Defects are not evident
Our way of thinking must change
All losses are caused by ourselves
3/12/2024 Hamed.Ali.Mohamed2@gmail.com 36
Prevention is essential
Target is "0"
It is important to eliminate the sources of failures
Implication of prevention:
Maintain normal conditions
Find defects as early as possible
Prevent wear and tear
Improve inspection methods
Control and understand logical relations
It is important to develop systems for early detection of potential problems
It is not sufficient to notice the losses/problems!
Philosophy of prevention
3/12/2024 Hamed.Ali.Mohamed2@gmail.com 37
1. Decide definition of Losses which occur on-site
2. Establish a mechanism to measure the above losses
3. Identify Loss structure
4. Emphasis on losses and the tasks to reduce them
5. Study approaches for reducing each loss
6. Make trends of each loss clear
How to attack losses ?
3/12/2024 Hamed.Ali.Mohamed2@gmail.com 38
Define the losses by name, characteristic, examples...
More than 1 name is being used for same loss:
Failure=Break down loss
Minor stoppages=Idling loss
Quality defects=Rework loss
Set-up and adjustment=Changeover loss
Reduced speed=Speed loss
Start-up&Shut-down=Yield loss
1. Define losses
3/12/2024 Hamed.Ali.Mohamed2@gmail.com 39
2. Measure losses
• Establish a mechanism to measure the losses
– Who ?
– What ?
– When ?
– Where ?
– How ?
3/12/2024 Hamed.Ali.Mohamed2@gmail.com 40
Identify Bottleneck equipment / lines
3. Identify loss structure
Failure Set-up Start-up Minor
Stoppage
Reduced
Speed
Scrap
Rework
Line A
Line B
Line C
.
.
Total
Total
OEE%
3/12/2024 Hamed.Ali.Mohamed2@gmail.com 41
Focus on the large losses
Consolidate losses into “Kaizen” themes
4. Emphasis on losses and the tasks to reduce
them
3/12/2024 Hamed.Ali.Mohamed2@gmail.com 42
5. Study approaches for reducing
each loss
• Focused Improvement
– Why Why Why Analysis to reduce loss by 95%
– PM- Analysis to reduce loss to zero
– Line Performance Improvement
– Set-up/ change over time Analysis etc.
• Autonomous Maintenance
• Planned Maintenance
• Training & Education
• Early Equipment Management
– (new equipment with TPM features)
3/12/2024 Hamed.Ali.Mohamed2@gmail.com 43
A. Failure / breakdown loss
B. Set-up / change-over loss
C. Start-up&Shut down loss
D. Minor stoppages loss
E. Reduced speed loss
F. Defects loss
6-1. Make trends of each loss clear
OEE graph shows 100% - 6 losses
100%
= 920
prod/shift
month
OEE
F
F
F
F
F
F
E
D
D
D
D
D
D
C
C
C
C
C
C
B
B
B
B
B
B
A
A
A
A
A
A
OEE
E E E E E
Good
50%
= 460
prod/shift
3/12/2024 Hamed.Ali.Mohamed2@gmail.com 44
6-2. Make trends of each loss clear
Show losses in “Loss Tree”
OEE %
85%
60%
Performance %
90%
70%
Availability %
75%
65%
Quality %
90%
85%
Set-up /
Changeover
Start-up
Shut-down
Failure/
Breakdowns
Speed Loss
rate
Color not good
Scrap
Rework
Contaminated
Minor Stop.
Loss rate
Adjustm time
Set-up time
Warming up
Cool down
Machine A,B.
Type A, B,C..
Out of spec
Damaged
Set speed
vs Standard speed
Machine A
Machine B
Machine C
Machine D
Machine E
min min min % % prod prod
Type A,B, C..
MTBF
MTTR
Failure rate
Machine A, B,C...
Bottleneck analysis
Slowest machine ?
MTBS
MTTS
Set-up rate
3/12/2024 Hamed.Ali.Mohamed2@gmail.com 45
Labor productivity and OEE
• Labor Productivity = Overall Equipment Efficiency
Cycle Time * Manning
• Kg = [1] .
ManHour Hour/Kg * Man
• To improve labor productivity you can:
– Reduce cycle time by upgrading/replacing the equipment
– Reduce number of operators by automating the equipment
– Improve OEE by reducing the 6 big losses
• Improving OEE is the easiest way to improve labor
productivity and does not need capital investment !
3/12/2024 Hamed.Ali.Mohamed2@gmail.com 46
Thanks For Your attaention
3/12/2024 Hamed.Ali.Mohamed2@gmail.com 47

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Efektivitas peralatan secara keseluruhan

  • 1. What’s OEE (Overall Equipment Effectiveness)? 3/12/2024 1
  • 2. Background Management Operational wise Business wise Overall Equipment Efficiency Asset Utilization Asset Utilization and OEE indices show how the factory is being managed in the operational and business prospective 3/12/2024 Hamed.Ali.Mohamed2@gmail.com 2
  • 3. OEE Definition OEE is an index which calculates the equipment operating state and judges if the equipment is utilized at its fullest. ‫المعدة‬ ‫ان‬ ‫االعتبار‬ ‫فى‬ ‫أخذين‬ ‫للمعدة‬ ‫التشغيلية‬ ‫الحالة‬ ‫بحساب‬ ‫يقوم‬ ‫دليل‬ ‫لها‬ ‫األقصى‬ ‫بالحد‬ ‫مستخدمة‬ 3/12/2024 Hamed.Ali.Mohamed2@gmail.com 3
  • 4. OEE Calculation Overall equipment efficiency = Availability x Performance rate x Quality Products Rate It is calculated by multiplying together the equipment's .availability, performance rate and quality rate An overall assessment in terms of the three attributes of time, speed and quality, it indicates the proportion of time for which the equipment is actually adding value. 3/12/2024 Hamed.Ali.Mohamed2@gmail.com 4
  • 5. Availability indicates the extent downtime Performance Rate indicates the scale performance losses Quality Products Rate indicates size of products defects losses OEE Calculation 3/12/2024 Hamed.Ali.Mohamed2@gmail.com 5
  • 6. Loading Time Operating Time Net Operating Time Downtime Losses Performance Losses Shutdown Losses Value Operating Time Defects Losses OEE indices 16 HPC TPM Losses Total Time OEE Calculation 3/12/2024 Hamed.Ali.Mohamed2@gmail.com 6
  • 7. OEE Calculation Availability = Loading time - Downtime x 100 Loading Time Performance = Standard Cycle time x Products units Processed x 100 Operating Time Quality = Products units Processed - Defects units x 100 Products units Processed Loading Time Operating Time Net Operating Time Value Operating Time Downtime Losses Performance Losses Defects Losses Shutdown Losses Notes: a) Standard Cycle Time: Based on Designed,Maximum Speed (as defined in losses definition) b)Defects units: Include not only the waste but also the quantity of rework c) OEE Calculation Area OEE: Availability x Performance x Quality Total Time 3/12/2024 Hamed.Ali.Mohamed2@gmail.com 7
  • 8. 16 Losses Classifications Loading Time Operating Time Net Operating Time Value Operating Time Downtime Losses Performance Losses Defects Losses Shutdown Losses 1- Equipment Breakdown 2- Changeover 3- Cutting Blade Change 4- Start-up / Ramp down 9- Management 10- Operational Motion 5- Minor Stoppages 6- Speed 11- Line Organisation 12- Logistics 8- Shutdown 7- Defects and rework 13 - Measurement and Adjustment 14 - Energy 15 - Maintenance spare parts 16 - Yield Total Time 3/12/2024 Hamed.Ali.Mohamed2@gmail.com 8
  • 9. Losses Definition • Equipment Breakdown Unplanned equipment stoppage more than 10 minutes • Minor Stoppage Unplanned equipment stoppage less than 10 minutes 3/12/2024 Hamed.Ali.Mohamed2@gmail.com 9
  • 10. Losses Definition • Change over Time taken for a change over from last product at nominal speed and quality until the first product of the next run at nominal speed and quality. • Cutting blade change time taken to change items used in the process which have worn out, e.g. blades, reels, etc... 3/12/2024 Hamed.Ali.Mohamed2@gmail.com 10
  • 11. Losses Definition • Start up / Shut down Start up is total time taken to achieve nominal speed and quality. Start up time is measured after any planned stoppage not including change over. Shut down is total time taken to shut down the line and establish appropriate conditions for an effective start up. 3/12/2024 Hamed.Ali.Mohamed2@gmail.com 11
  • 12. Losses Definition • Speed Speed loss from running the line at a speed less than standard cycle time for a particular product. • Defects and Rework Time lost in producing non-conforming product or time to rework non-conforming product. 3/12/2024 Hamed.Ali.Mohamed2@gmail.com 12
  • 13. Losses Definition • Shutdown This is caused by stopping the equipment for periodic planned activity like maintenance or inspection or for legal inspection during the production stage. This also includes holidays, weekends, no plan, modifications, trials, etc... 3/12/2024 Hamed.Ali.Mohamed2@gmail.com 13
  • 14. Losses Definition • Management These are waiting time losses generated by management problems, e.g failure to provide materials, spare parts, waiting instructions, utilities, etc... • Operational motion Losses due to difference in skills levels or to inefficient layout. 3/12/2024 Hamed.Ali.Mohamed2@gmail.com 14
  • 15. Losses Definition • Line organization Losses due to shortage of operators, e.g. during the break. • Logistics Time wasted due to inefficient delivery of raw and packaging materials, product to the line and removal of finished product from the line. 3/12/2024 Hamed.Ali.Mohamed2@gmail.com 15
  • 16. Losses Definition • Measurement and adjustment Frequent measurement and adjustment to prevent recurrence of problems, e.g. quality Routine and unexpected cleaning and sanitisation are also considered here. 3/12/2024 Hamed.Ali.Mohamed2@gmail.com 16
  • 17. Background Management Operational wise Business wise Overall Equipment Efficiency Asset Utilization Asset Utilization and OEE indices show how the factory is being managed in the operational and business prospective 3/12/2024 Hamed.Ali.Mohamed2@gmail.com 17
  • 18. Asset Utilization • Definition An index which measures utilization of the lines taking into account the impact of the factory shutdown on availability. • Calculation Asset Uitilisation = Loading time x 100 (%)/Total time Capacity planning How efficiently is the line being utilized from business point of view 3/12/2024 Hamed.Ali.Mohamed2@gmail.com 18
  • 20. The 6 big losses 3/12/2024 Hamed.Ali.Mohamed2@gmail.com 20
  • 21. 100% Capability Speed Loss Start-Up Loss (warming up + ramp up to full speed) Minor Stoppages and Idling Defects Failures Setup & Adjustment Time Shut-down Loss (ramp down speed cool down) The 6 big losses visualized 3/12/2024 Hamed.Ali.Mohamed2@gmail.com 21
  • 22. OEE Definitions Loading Time Utilization Time Down- time loss Perform ance loss Value Added Time Defects loss Net Utilization Time Failures / breakdown Set-up /changeover Start-up / shut-down Minor stoppages / Idling Reduced speed Quality defects / Scrap & Rework Operating (Shift) Time Shut down loss No personnel, no materials, no orders, planned maintenance OEE = Value Added Time Loading Time =% efficiency of line in the loading time Shut down losses such as planned maintenance / meals / rests have no effect on OEE! Availability = Utilization Time Loading Time = % of loading time that line was running Performance rate = Net Utilization Time Utilization Time = Actual Production___ Utilization Time * Std. speed = % of potential production that was made Quality rate = Value Added Time Net Utilization Time = Good Production Actual Production = % of actual production that can be sold 3/12/2024 Hamed.Ali.Mohamed2@gmail.com 22
  • 23. Loading Time Utilization Time Down- time loss Perform ance loss Value Added Time Defects loss Net Utilization Time Equipment Failures / breakdown Set-up /changeover Start-up / shut-down Minor stoppages / Idling Reduced speed Quality defects / Scrap & Rework 6 Big losses Availability: =loading time - downtime x 100 % loading time example: available time = 8 hours=480 min meal break = 20 min loading time = 480-20= 460 min downtime = 60 min = 460 min - 60 min = 87% 460 min Calculation Availability 3/12/2024 Hamed.Ali.Mohamed2@gmail.com 23
  • 24. Measuring availability Data Collection Sheet Availability = G / (G + F) =335/(335+85)=79.8% 3/12/2024 Hamed.Ali.Mohamed2@gmail.com 24
  • 25. Measuring availability Data Collection Sheet - Codes Type Code Planned Maintenance PM Meals & Rest MR Meetings MT Training TR No Materials NM Shut-down time Type Code Machine Code Electrical E Bottle Infeed I Pneumatic P Filler F Motor M Capper C Control system C Labeller L Failure = T ype code + Machine code Type Code CO Product A->B AB CO Product A->C AC CO Product A->D AD color/size change etc. - - - - - Adjustments AX Cleaning (not scheduled) CL Set-up C/O Adj. Type Code Warming up time WU 1/2 Ramp up time RU 1/2 Ramp down time RD Cool down time CD Start up-shut down • Example codes for shut down losses = those items excluded from OEE • Example codes for down time losses = those items included in OEE-availability 3/12/2024 Hamed.Ali.Mohamed2@gmail.com 25
  • 26. Performance rate: = actual production x 100 % utilization time * standard speed example: standard speed = 2 products / min actual production = 400 products utilization time = 400 min 400 products = 50 % 400 min * 2 products /min Performance rate Loading Time Utilization Time Down- time loss Perform ance loss Value Added Time Defects loss Net Utilization Time Equipment Failures / breakdown Set-up / changeover Start-up / shut-down Minor stoppages / Idling Reduced speed Quality defects / Scrap & Rework 6 Big losses Calculation 3/12/2024 Hamed.Ali.Mohamed2@gmail.com 26
  • 27. Measuring performance rate • Speed loss rate = Set speed Standard speed • Minor stoppage loss rate = Actual production Utilization time * Set speed •The “set speed” is the speed as set on the machine •The standard speed is max speed of the “bottleneck” machine making the particular product based on: • spec: “designed speed”/“Name Plate Capacity” •or highest speeds obtained in other factories •or run machine at top speed and measure it • Performance rate = minor stoppage loss rate * speed loss rate = Actual production * Set speed = Actual production Utilization time * Set speed * Standard speed Utilization time * Standard speed Note: The minor stoppage loss rate accounts for all non recorded downtime which consists mainly of the minor stops = failures < 5 min, non-recorded speed variations and idling (line is running without product being produced on the line) If possible try to count the number of small stops on each machine and identify the causes 3/12/2024 Hamed.Ali.Mohamed2@gmail.com 27
  • 28. Type Code Machine Code Bottle Jam J Bottle Infeed I Bottle Broken B Filler F No Cap C Capper C No Fill F Labeller L No Label L Palletizer P Minor Stops = T ype Code + Machine Code Measuring performance rate Data collection sheet • Example codes for minor stops Speed loss rate = I / H = 47.1 / 54.2 = 86.9% Minor Stoppage Loss rate = L / K = 15400 / 15775 = 97.6% Performance rate = L / J = 15400 / 18150 = 84.8% 3/12/2024 Hamed.Ali.Mohamed2@gmail.com 28
  • 29. Quality rate: actual _ defective = production production x 100 % actual production example: actual production = 400 products defective production = 8 products (scrap+rework) = 400 products - 8 defects = 98% 400 products Quality rate Loading Time Utilization Time Down- time loss Perform ance loss Value Added Time Defects loss Net Utilization Time Equipment Failures / breakdown Set-up / changeover Start-up / shut-down Minor stoppages / Idling Reduced speed Quality defects / Scrap & Rework 6 Big losses Calculation 3/12/2024 Hamed.Ali.Mohamed2@gmail.com 29
  • 30. Measuring & Calculating Quality products rate Defects (Scrap + Rework) Quality Rate = Actual production - Defects = Good production = 14900 = 96.7% Actual production Actual production 15400 Good production Output of filled bottles in box on pallet Actual production = Input of empty bottles Defects (Scrap + Rework) Defects (Scrap + Rework) Defects (Scrap + Rework) Defects (Scrap + Rework) 3/12/2024 Hamed.Ali.Mohamed2@gmail.com 30
  • 31. OEE = Availability x Performance rate x Quality rate = 0.87 x 0.50 x 0.98 x 100% = 42.6 % = Good Quality Production = 392 = 42.6% Loading Time * Standard Speed 460 * 2 Overall Equipment Efficiency Availability: = loading time - downtime x 100 % loading time example: loading time = 460 minutes downtime = 60 minutes 460 min - 60 min = 87% 460 min Performance rate: = actual production x 100 % utilization time * standard speed example: standard speed = 2 products / min actual production = 400 products utilization time = 400 min 400 products = 50 % 400 min * 2 products /min Quality rate: actual _ defective = production production x 100 % actual production example: actual production = 400 products defective production = 8 products (scrap+rework) = 400 products - 8 defects = 98% 400 products 3/12/2024 Hamed.Ali.Mohamed2@gmail.com 31
  • 32. -- Meal breaks -- Set-up / cleaning / changeovers -- Start-up & shut-down -- No Production orders / plan -- Scheduled modifications / maintenance -- Trials / Test production -- Failures / Breakdowns -- Minor stoppages / idling -- Decreased speed -- Quality defects/scrap &rework Effective Time = Value Added Time Operational Time Loading Time Utilization Time Production Time Routine Production Stoppages Unexpected Stoppages Performance loss Defect loss Downtime loss Pamco versus TPM loss analysis 3/12/2024 Hamed.Ali.Mohamed2@gmail.com 32
  • 33. Pamco versus TPM loss analysis • Pamco’s OE includes lunch break as routine stoppage. TPM’s OEE does not include meal breaks as down time loss. Therefore OEE >= OE • To confirm to Unilever Pamco include the meal breaks into TPM’s down time loss so that OE = OEE. • Monitoring each of the six losses individually enables calculation of Pamco OE/PE and TPM availability, performance rate and quality product rate as well as generation of a loss tree showing all 6 big losses • Knowing each of your 6 big losses is more important for improvement than knowing your OE or OEE!!! 3/12/2024 Hamed.Ali.Mohamed2@gmail.com 33
  • 34. Loss rate Time * Restoration type countermeasures are needed to reduce the loss rate to its earlier level * Improvement type countermeasures are needed to reduce the loss rate to its limit Sporadic loss Limit Chronic loss Sporadic versus chronic loss 3/12/2024 Hamed.Ali.Mohamed2@gmail.com 34
  • 35. Loss cause structure • Sporadic Loss – Single Cause • One cause is responsible for loss • Chronic Loss – Multiple cause • There is one triggering cause, but there are many different causes which change each time – Compounding Cause • One cause alone does not trigger the loss, but a loss is created when various causes are compounded. The combination of causes changes each time Cause Cause Cause Cause Cause Cause Cause Cause Chronic losses can only be eliminated by identifying and taking countermeasures against all causes ! 3/12/2024 Hamed.Ali.Mohamed2@gmail.com 35
  • 36. The production floor is a source of losses 6 big losses (failures, minor stoppages, defects, start-up, set-up, speed) We cause the losses ourselves Circumstances and logical situations exist that cause losses, but these losses can not be discovered directly Symptoms of failures are not clear Wear and tear is not evident Defects are not evident Our way of thinking must change All losses are caused by ourselves 3/12/2024 Hamed.Ali.Mohamed2@gmail.com 36
  • 37. Prevention is essential Target is "0" It is important to eliminate the sources of failures Implication of prevention: Maintain normal conditions Find defects as early as possible Prevent wear and tear Improve inspection methods Control and understand logical relations It is important to develop systems for early detection of potential problems It is not sufficient to notice the losses/problems! Philosophy of prevention 3/12/2024 Hamed.Ali.Mohamed2@gmail.com 37
  • 38. 1. Decide definition of Losses which occur on-site 2. Establish a mechanism to measure the above losses 3. Identify Loss structure 4. Emphasis on losses and the tasks to reduce them 5. Study approaches for reducing each loss 6. Make trends of each loss clear How to attack losses ? 3/12/2024 Hamed.Ali.Mohamed2@gmail.com 38
  • 39. Define the losses by name, characteristic, examples... More than 1 name is being used for same loss: Failure=Break down loss Minor stoppages=Idling loss Quality defects=Rework loss Set-up and adjustment=Changeover loss Reduced speed=Speed loss Start-up&Shut-down=Yield loss 1. Define losses 3/12/2024 Hamed.Ali.Mohamed2@gmail.com 39
  • 40. 2. Measure losses • Establish a mechanism to measure the losses – Who ? – What ? – When ? – Where ? – How ? 3/12/2024 Hamed.Ali.Mohamed2@gmail.com 40
  • 41. Identify Bottleneck equipment / lines 3. Identify loss structure Failure Set-up Start-up Minor Stoppage Reduced Speed Scrap Rework Line A Line B Line C . . Total Total OEE% 3/12/2024 Hamed.Ali.Mohamed2@gmail.com 41
  • 42. Focus on the large losses Consolidate losses into “Kaizen” themes 4. Emphasis on losses and the tasks to reduce them 3/12/2024 Hamed.Ali.Mohamed2@gmail.com 42
  • 43. 5. Study approaches for reducing each loss • Focused Improvement – Why Why Why Analysis to reduce loss by 95% – PM- Analysis to reduce loss to zero – Line Performance Improvement – Set-up/ change over time Analysis etc. • Autonomous Maintenance • Planned Maintenance • Training & Education • Early Equipment Management – (new equipment with TPM features) 3/12/2024 Hamed.Ali.Mohamed2@gmail.com 43
  • 44. A. Failure / breakdown loss B. Set-up / change-over loss C. Start-up&Shut down loss D. Minor stoppages loss E. Reduced speed loss F. Defects loss 6-1. Make trends of each loss clear OEE graph shows 100% - 6 losses 100% = 920 prod/shift month OEE F F F F F F E D D D D D D C C C C C C B B B B B B A A A A A A OEE E E E E E Good 50% = 460 prod/shift 3/12/2024 Hamed.Ali.Mohamed2@gmail.com 44
  • 45. 6-2. Make trends of each loss clear Show losses in “Loss Tree” OEE % 85% 60% Performance % 90% 70% Availability % 75% 65% Quality % 90% 85% Set-up / Changeover Start-up Shut-down Failure/ Breakdowns Speed Loss rate Color not good Scrap Rework Contaminated Minor Stop. Loss rate Adjustm time Set-up time Warming up Cool down Machine A,B. Type A, B,C.. Out of spec Damaged Set speed vs Standard speed Machine A Machine B Machine C Machine D Machine E min min min % % prod prod Type A,B, C.. MTBF MTTR Failure rate Machine A, B,C... Bottleneck analysis Slowest machine ? MTBS MTTS Set-up rate 3/12/2024 Hamed.Ali.Mohamed2@gmail.com 45
  • 46. Labor productivity and OEE • Labor Productivity = Overall Equipment Efficiency Cycle Time * Manning • Kg = [1] . ManHour Hour/Kg * Man • To improve labor productivity you can: – Reduce cycle time by upgrading/replacing the equipment – Reduce number of operators by automating the equipment – Improve OEE by reducing the 6 big losses • Improving OEE is the easiest way to improve labor productivity and does not need capital investment ! 3/12/2024 Hamed.Ali.Mohamed2@gmail.com 46
  • 47. Thanks For Your attaention 3/12/2024 Hamed.Ali.Mohamed2@gmail.com 47