Using OEE to Improve Production

           Adrian Pask
         Vorne Industries
Straw poll
• Everyone raise a hand in the air

• Put your hand down if you
  DON’T know about OEE

• Put your hand down if you
  DON’T measure OEE in your
  plant
Catch up on OEE
• OEE – highly documented measure
  for identifying loss

• OEE Pocket Guides

• How can you use OEE to improve
  production?
What is OEE about?
• It’s not about the score !!

• It’s about the losses:
   – Availability
   – Performance                             85%
   – Quality


• Improving OEE = taking action to reduce loss at each
  level of your business
Using Data
• The value of Information is in how it’s used

• Many sites track OEE, cases, downtime,
  output, productivity, yield, etc etc

• If you don’t use the data to make decisions
  and to take action – what is it worth?
OEE and sustainable improvement
• Why do most factories audit for Quality,
  Safety, and Housekeeping?

• Why do very few factories audit how
  effectively teams improve Output (of which
  OEE is a measure)?
Audit your OEE improvement process
• What would be the impact to your business if
  you created standard work for improving
  output based on OEE?

• All of your managers and sites would work to
  improve output the same way.
Process for improving OEE
• IF you Act you get Results

I = Information
F = Focus
A = Effective Actions


  I x F x A = Results          Originally developed by our UK Partner, OptimumFX.
What do we want?
A standard business process based on:
•Information:
   – A foundation of accurate, automated performance data that identifies
     all losses to OEE


•Focus:
   – Robust management review meetings that prioritize losses and
     identify countermeasures at every level in the organization


•Actions:
   – Apply countermeasures that directly affect these losses
Breaking the vision down
What OEE                How do we Focus to set         How do we take Action
Information is          priorities:                    for:
needed by:

-Operators              -What time period              -Quick fixes
-Supervisors            -How frequently                -Long term fixes
-Managers               -What questions                -Using right lean tools?
-Directors              -What is the process?          -Evaluate effectiveness
                                                       -Start/Stop projects


To identify losses in   To identify priorities and     To close out losses as
a meaningful time       assign resources for action?   they occur and prevent re-
period?                                                occurrence?
In real life
•   As an Operator:
     – I use OEE in real time to run my machine to standard – alarms if running slow or off target
     – I look for my top loss every hour to identify a quick fix

•   As a Supervisor
     – I use OEE every 4 hours and at every shift handover
     – I look for improvements my team can make during the next 4 hours, training needs, and tasks
       for my engineering support team

•   As a Manager
     – I use OEE in every morning meeting and shift change
     – I look for improvement projects and training opportunities across my teams

•   As a Director
     – I use OEE every month in a strategic review
     – I look to start/stop improvement initiatives and to identify CAPEX investment needs
Use simple audits to check progress

Information      Focus         Actions
Why do I want to do this?
• Manage and measure the inputs and the
  results are guaranteed

• Your inputs = Information , Focus, Actions

• Your output = Sustainable OEE (RESULTS)
What does this mean?
• Let go of the need to measure and compare OEE score

• Measure and compare scores for:
   – The quality of your information
   – The effectiveness of your focus process
   – The effectiveness of your actions


• An improved OEE will be an output of an effective
  improvement process
Improving production with OEE
How do we use OEE to improve production?

1.Accurately identify losses using Information

2.Create processes for people to Focus on the losses
and identify priorities

3.Systematically complete effective Actions to based
on the losses
In three easy steps
•   Step 1:
     – Get good quality automated accurate information
     – Train teams on what their data means for them


•   Step 2:
     – Engage line teams to drive quick shift-level actions based on the information
     – Build the information into existing daily and weekly reviews
     – Review and score all daily reviews for effectiveness


•   Step 3:
     – Trigger targeted improvement projects based on your top losses (e.g. SMED)
     – Use Loss data to create a strategic improvement plan

Using OEE to Improve Production - Interphex Puerto Rico 2012

  • 1.
    Using OEE toImprove Production Adrian Pask Vorne Industries
  • 2.
    Straw poll • Everyoneraise a hand in the air • Put your hand down if you DON’T know about OEE • Put your hand down if you DON’T measure OEE in your plant
  • 3.
    Catch up onOEE • OEE – highly documented measure for identifying loss • OEE Pocket Guides • How can you use OEE to improve production?
  • 4.
    What is OEEabout? • It’s not about the score !! • It’s about the losses: – Availability – Performance 85% – Quality • Improving OEE = taking action to reduce loss at each level of your business
  • 5.
    Using Data • Thevalue of Information is in how it’s used • Many sites track OEE, cases, downtime, output, productivity, yield, etc etc • If you don’t use the data to make decisions and to take action – what is it worth?
  • 6.
    OEE and sustainableimprovement • Why do most factories audit for Quality, Safety, and Housekeeping? • Why do very few factories audit how effectively teams improve Output (of which OEE is a measure)?
  • 7.
    Audit your OEEimprovement process • What would be the impact to your business if you created standard work for improving output based on OEE? • All of your managers and sites would work to improve output the same way.
  • 8.
    Process for improvingOEE • IF you Act you get Results I = Information F = Focus A = Effective Actions I x F x A = Results Originally developed by our UK Partner, OptimumFX.
  • 9.
    What do wewant? A standard business process based on: •Information: – A foundation of accurate, automated performance data that identifies all losses to OEE •Focus: – Robust management review meetings that prioritize losses and identify countermeasures at every level in the organization •Actions: – Apply countermeasures that directly affect these losses
  • 10.
    Breaking the visiondown What OEE How do we Focus to set How do we take Action Information is priorities: for: needed by: -Operators -What time period -Quick fixes -Supervisors -How frequently -Long term fixes -Managers -What questions -Using right lean tools? -Directors -What is the process? -Evaluate effectiveness -Start/Stop projects To identify losses in To identify priorities and To close out losses as a meaningful time assign resources for action? they occur and prevent re- period? occurrence?
  • 11.
    In real life • As an Operator: – I use OEE in real time to run my machine to standard – alarms if running slow or off target – I look for my top loss every hour to identify a quick fix • As a Supervisor – I use OEE every 4 hours and at every shift handover – I look for improvements my team can make during the next 4 hours, training needs, and tasks for my engineering support team • As a Manager – I use OEE in every morning meeting and shift change – I look for improvement projects and training opportunities across my teams • As a Director – I use OEE every month in a strategic review – I look to start/stop improvement initiatives and to identify CAPEX investment needs
  • 12.
    Use simple auditsto check progress Information Focus Actions
  • 13.
    Why do Iwant to do this? • Manage and measure the inputs and the results are guaranteed • Your inputs = Information , Focus, Actions • Your output = Sustainable OEE (RESULTS)
  • 14.
    What does thismean? • Let go of the need to measure and compare OEE score • Measure and compare scores for: – The quality of your information – The effectiveness of your focus process – The effectiveness of your actions • An improved OEE will be an output of an effective improvement process
  • 15.
    Improving production withOEE How do we use OEE to improve production? 1.Accurately identify losses using Information 2.Create processes for people to Focus on the losses and identify priorities 3.Systematically complete effective Actions to based on the losses
  • 16.
    In three easysteps • Step 1: – Get good quality automated accurate information – Train teams on what their data means for them • Step 2: – Engage line teams to drive quick shift-level actions based on the information – Build the information into existing daily and weekly reviews – Review and score all daily reviews for effectiveness • Step 3: – Trigger targeted improvement projects based on your top losses (e.g. SMED) – Use Loss data to create a strategic improvement plan