SlideShare a Scribd company logo
© Operational Excellence Consulting. All rights reserved.
OVERALL
EQUIPMENT
EFFECTIVENESS
Eliminate Losses, Improve OEE
© Operational Excellence Consulting. All rights reserved. 2
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
© Operational Excellence Consulting. All rights reserved. 3
Outline
Copyrights of all the pictures used in this presentation are held by their respective owners.
Understanding Equipment-related Losses
2
Introduction to TPM and OEE
1
Improving OEE
4
Measuring OEE
3
© Operational Excellence Consulting. All rights reserved. 4
What is OEE?
• Overall Equipment Effectiveness (OEE) is a measurement used in
TPM to indicate how effectively machines are running
• OEE is calculated from three underlying factors:
§ Availability
§ Performance
§ Quality
• Each of these factors represents a different perspective of how close
your manufacturing process is to perfect production
© Operational Excellence Consulting. All rights reserved. 5
What is OEE?
• Availability
§ A comparison of the potential operating time and the time in which the
machine is actually making products
• Performance (Efficiency)
§ A comparison of the actual output with what the machine should be
producing in the same time
• Quality
§ A comparison of the number of products made and the number of
products that meet the customer’s specifications
OEE = Availability X Performance X Quality
© Operational Excellence Consulting. All rights reserved. 6
Why is OEE Important?
• OEE is expressed as a percentage
§ It gives a complete picture of the machine’s “health”
§ Indicates not just how fast it can make parts but how much the potential
output is limited due to lost availability or poor quality
• Effectiveness focuses on the equipment, not the person
• OEE measurement helps us to direct improvement efforts on the
equipment or process
© Operational Excellence Consulting. All rights reserved. 7
OEE: An Indicator of Equipment Health
Overall Equipment
Effectiveness
Availability
Breakdowns
Setups &
Adjustments
Performance
Reduced Speed
Minor Stops &
Idling
Quality
Defects &
Rework
Startup &
Yield Loss
Six Big Losses
Source: Japan Institute of Plant Maintenance (JIPM)
© Operational Excellence Consulting. All rights reserved. 8
Equipment Losses & OEE
Six Big Losses
Downtime
Losses
Quality
Losses
Speed
Losses
Fully
Productive
Time
Net Operating
Time
Planned Production Time
Operating Time
Equipment
Average total operating loss
30-50%
Breakdowns
Setups &
Adjustments
Reduced
Speed
Minor Stops
& Idling
Defects &
Rework
Startup &
Yield Loss
Breakdowns per machine
(stopped longer than 10 mins)
– less than once a month
Setup/adjustment time – less
than 10 mins
Achieve ideal cycle times
(design speed); increase 15%
or more
Minor stoppages and idling
per machine – under 10 mins
Rate (including products to be
reworked) – less than 0.1%
Startup yield – 99% or more of
lot
Ideal Cycle Time x Total Pcs
Operating Time
Good Pieces
Total Pieces
Operating Time
Planned Production Time
Availability
Quality
Performance
Greater than 90%
Throughput process
- Greater than 99%
Greater than 95%
OEE Factors
OEE = Availability x Performance x Quality
Source: Adapted from ‘TPM for Supervisors’, Productivity Press Development Team
© Operational Excellence Consulting. All rights reserved. 9
Six Big Equipment Losses
Breakdowns
Setups &
Changeovers
Reduced Speed
Idling &
Minor Stoppages
Defects &
Rework
Startup (Yield)
Loss
6 Big Equipment
Losses
§ Conveyors
§ Transport
§ Automatic welders
§ Presses
§ Paint processes
§ Molding machines
§ Machine tools
§ Presses
§ Transfer devices
§ Sensors
§ Automated assembly
§ Grinding
§ Presses
§ Seam welding
§ Raw material
§ Components
§ Fuel
Frequent Sites
Function
Maintenance
Manufacturing
Inspection
Technical
services
Production
engineering
Source: TPM Team Guide, Productivity Press Development Team
© Operational Excellence Consulting. All rights reserved. 10
Breakdown Losses
• Largest of the six major equipment losses
• Caused by equipment defects which require any kind of repair.
Examples:
§ Tooling failures
§ Unplanned maintenance
§ General breakdowns
§ Equipment failure
• Losses consist of downtime with labor and spare parts required to fix
the equipment
• Magnitude is measured by downtime
© Operational Excellence Consulting. All rights reserved. 11
Minor Stoppage Losses
• Caused by events such as machine halting, jamming, idling,
misfeeds, blocked sensors, etc.
• Generally, these losses cannot be recorded automatically without
suitable instruments
• Formula: Losses = 100% - Performance Rate
• Many companies regard such minor stoppages as breakdowns in
order to emphasize their importance, even though no damage has
occurred to the equipment
© Operational Excellence Consulting. All rights reserved. 12
Approaches for Eliminating Minor Stoppages
Steps Hints
1. Get a clear idea of the loss Take a closer look at the losses from minor stoppages. See if you
can express them numerically.
2. Take care of slight
abnormalities
Slight abnormalities in the product or the processing equipment
(ones that may or may not cause trouble) should be looked at one by
one and treated as real problems.
3. Analyze the current situation Observe the situation carefully and analyze it. Consider every
condition you find, without worrying about how likely it is to cause
trouble.
4. Investigate every factor;
identify and treat all abnormal
conditions
Don’t be bound by previous criteria for judging what’s important.
Analyze not only the malfunctions but also everything that might be a
symptom as a malfunction.
5. Determine optimal
conditions
Don’t assume that machine or conveyor parts and units are currently
attached and assembled in the most appropriate ways.
Source: Focused Equipment Improvement for TPM Teams, by JIPM
© Operational Excellence Consulting. All rights reserved. 13
Steps for Dealing with Speed Loss
Compare the specifications
and the current state
Pinpoint the problem areas
Take measures against the
problem areas
Confirm the results
Maintain optimal conditions
Investigate the
current state
Investigate the
process principles
Investigate the
equipment idle time
•Failure records
•Defect records
•Cycle diagram
•Vibration
•Current value
•Static precision
Investigate past
problems
•Types of
breakdowns and
their handling
•Shifts in the
defect rate
•Time series-type
speed shift
•Restore
•Get rid of slight abnormalities
•Modify equipment as needed
to maintain conditions
•Design specifications
•Ideal Values
•Manual for daily inspection
standards
•Manual for periodic
inspection standards
•Problems with the
principles
•Machining conditions
Source: Focused Equipment Improvement
for TPM Teams, by JIPM
© Operational Excellence Consulting. All rights reserved. 14
Quality Defect & Rework Losses
• Caused by off-specification or defective products
§ Rework
§ Scrap
• Losses consist of labor required to rework the products and the cost
of the material to be scrapped
• Measured by the ratio of quality products to total production
• Sometimes designated as “quality defects in process” in order to
distinguish from defective products during start-up and adjustment
operations
© Operational Excellence Consulting. All rights reserved. 15
Ideas for Reducing Chronic Defects
Ideas for Reducing Chronic Defects
Look beyond the obvious • Don’t worry too much about what has the most influence
• Think systematically and take measures against every
abnormality
Review all factors carefully • Think systematically about the form the defects took to
understand what the factors are
• Give all the possible reason for them
Take abnormal conditions
seriously
• Quantify the abnormality
• Use the inspection technology for your equipment to find signs of
abnormal conditions
Clarify the relationship between
equipment and quality factors
• Determine the proper condition for each component to produce a
quality result
• Manage the components according to those principles
Monitor changes in the factors
that need to be managed
• Understand changes over time through examination,
measurement, and spot checks
• Determine treatment thresholds
Source: Focused Equipment Improvement for TPM Teams, by JIPM
© Operational Excellence Consulting. All rights reserved. 16
Strategies for Zero Breakdowns
• Restore equipment
• Maintain basic equipment conditions
• Adhere to standard operating procedures
• Improve operator maintenance skills
• Don’t stop at quick fixes
• Correct design weaknesses
• Study breakdowns relentlessly
© Operational Excellence Consulting. All rights reserved. 17
Measuring OEE
Collecting OEE
Data
Processing OEE
Data
Reporting OEE
Results
• Define what to
measure
• Make data
collection simple
• The OEE
calculation
• Storing OEE
data
• Share OEE
results
• Use charts for
visual impact
© Operational Excellence Consulting. All rights reserved. 18
1. Collecting OEE Data
• Make data collection simple
§ The purpose of tracking OEE is
not to make extra paperwork for
operators
§ Most likely you are already a lot
of the data required for the OEE
calculation
§ One well-designed form can
make it easy to log the OEE
data as well as other data you
need to register during daily
production
© Operational Excellence Consulting. All rights reserved. 19
2. Processing OEE Data
Availability = Operating Time / Planned Production Time
Performance = (Ideal Cycle Time x Total Pieces) / Operating Time
Quality = Good Pieces / Total Pieces
OEE = Availability X Performance X Quality
© Operational Excellence Consulting. All rights reserved. 20
3. Reporting OEE Results
• Sharing OEE information is
critical for reducing equipment-
related losses
• Operators – the people who are
closest to the equipment – need
to be aware of OEE results
• Reporting OEE information on
charts in the workplace is key to
improving future results
© Operational Excellence Consulting. All rights reserved. 21
Discussion Questions on OEE
1. Is it practical to use OEE as a regular measurable?
2. Should OEE number be as high as possible?
3. Is it possible to have OEE higher than 100%?
4. Should you deduct certain periods (e.g. meetings,
planned maintenance) when counting available time?
© Operational Excellence Consulting. All rights reserved. 22
Improving OEE
• We measure OEE to monitor
the condition of the equipment
• The purpose of measuring OEE
is to drive improvement
• Sustained improvement
requires a dedicated approach,
with management support
© Operational Excellence Consulting. All rights reserved. 23
Improvement Goals for the 6 Big Losses
Type of Loss Goal Explanation
1. Breakdowns 0 Should be zero for all equipment
2. Setups and adjustments minimize
As short as possible; less than 10 mins with
zero adjustments
3. Reduced speed 0
Should match or – with improvements –
exceed equipment specifications
4. Minor stoppages 0 Should be zero for all equipment
5. Defects and rework 0
Extent may vary, but goal should be
expressed in parts per million (ppm)
6. Startup loss minimize
Source: TPM for Every Operator, Productivity Press Development Team
© Operational Excellence Consulting. All rights reserved. 24
Approaches to Improving OEE
1. 5 Why Analysis
2. Autonomous Maintenance
3. Focused Equipment &
Process Improvement
4. Quick Changeover
5. Poka Yoke (Mistake-Proofing)
6. P-M Analysis
© Operational Excellence Consulting. All rights reserved. 25
5 Whys Analysis – Example 1
Why? Answer
1
Why is there oil on the
floor?
Oil leaks from the cylinder rod
when activated.
2 Why did oil leak? The O-ring was cut.
3 Why was the O-ring cut? The rod was flawed.
4 Why was the rod flawed? Dirt in the oil abrades the rod.
5 Why did dirt get in the oil?
There are holes and gaps on the
upper plate of the tank.
Source: OEE for Operators, Productivity Press Development Team
© Operational Excellence Consulting. All rights reserved. 26
The Three Stages of SMED
Before SMED
Internal and
external setup not
differentiated
Stage 1
Separate
internal &
external
setup
Stage 2
Convert
internal
setup to
external setup
Stage 3
Streamline
all aspects
of setup
© Operational Excellence Consulting. All rights reserved. 27
Improving OEE through Kaizen Event
Focused Improvement
Source: TPM Team Guide, Productivity Press Development Team
1. Set TPM Targets
2. Form a Team &
Collect Data
3. Analyze
Breakdowns &
Suggest
Improvements
4. Track & Record
Performance
5. Achieve & Verify
Targets
6. Report Results &
Recognize Team
© Operational Excellence Consulting. All rights reserved. 28
The 8 Steps of P-M Analysis
Identify Constituent Conditions
3
Conduct a Physical Analysis
2
Clarify the Phenomenon
1
Study 4Ms for Causal Factors
4
Determine Abnormalities to be Addressed
7
Survey Causal Factors for Abnormalities
6
Establish Optimal Conditions (Standard Values)
5
Propose and Make Improvements
8
Source: Based on Kunio, et al.
© Operational Excellence Consulting. All rights reserved. 29
How to Sustain TPM & OEE
• Engaging employees
• Aim for early success
• Providing active leadership
• Share success stories
• Rewards and recognition
• Continuously improve OEE
• Evolving the TPM initiative over time
and integration with Lean
© Operational Excellence Consulting. All rights reserved. 30
Operational Excellence Consulting is a management training and consulting
firm that assists organizations in improving business performance and
effectiveness. Based in Singapore, the firm’s mission is to create business
value for organizations through innovative design and operational excellence
management training and consulting solutions. For more information, please
visit www.oeconsulting.com.sg

More Related Content

What's hot

Production Line OEE (Overall Equipment Effectiveness)
Production Line OEE (Overall Equipment Effectiveness)Production Line OEE (Overall Equipment Effectiveness)
Production Line OEE (Overall Equipment Effectiveness)
Brian Thomas
 
Lean Manufacturing - An Overview
Lean Manufacturing - An OverviewLean Manufacturing - An Overview
Lean Manufacturing - An Overview
Kanzen Institute Asia-Pacific
 
Lean Manufacturing Training
Lean Manufacturing TrainingLean Manufacturing Training
Lean Manufacturing Training
VISCAR INDUSTRIAL CAPACITY
 
Aim of tpm 16 losses/7 Steps of Jhisu Hozen
Aim of tpm 16 losses/7 Steps of Jhisu HozenAim of tpm 16 losses/7 Steps of Jhisu Hozen
Aim of tpm 16 losses/7 Steps of Jhisu Hozen
avijit biswas
 
TPM: Autonomous Maintenance
TPM: Autonomous MaintenanceTPM: Autonomous Maintenance
TPM: Autonomous Maintenance
Operational Excellence Consulting
 
TPM Activity
TPM ActivityTPM Activity
TPM Activity
Muhammad Ajmal
 
Lean manufacturing
Lean manufacturingLean manufacturing
Lean manufacturing
ASHUTOSH MISHRA
 
Autonomous maintenance Jishu Hozen
Autonomous maintenance Jishu HozenAutonomous maintenance Jishu Hozen
Autonomous maintenance Jishu Hozen
ChetanMehta39
 
tpm (total productive maintenance)
tpm (total productive maintenance)tpm (total productive maintenance)
tpm (total productive maintenance)
Shreya Chaudhary
 
Overall Equipment Effectiveness
Overall Equipment EffectivenessOverall Equipment Effectiveness
Overall Equipment Effectiveness
Kailas Sree Chandran
 
Jishu hozen
Jishu  hozenJishu  hozen
Jishu hozen
QC Labs
 
Lean manufacturing ppt
Lean manufacturing pptLean manufacturing ppt
Lean manufacturing ppt
Muhammad Mueez Nazakat
 
Training module 4 m change
Training module   4 m changeTraining module   4 m change
Training module 4 m change
Deepak Sharma
 
Total Productive Maintenance (TPM)
Total Productive Maintenance (TPM)Total Productive Maintenance (TPM)
Total Productive Maintenance (TPM)
Sanjeev Deshmukh
 
TPM for lean manufacturing chp4 step of “jlshu hozen “activities
TPM for lean manufacturing  chp4 step of “jlshu hozen “activitiesTPM for lean manufacturing  chp4 step of “jlshu hozen “activities
TPM for lean manufacturing chp4 step of “jlshu hozen “activities
博行 門眞
 
010 bmw tpm management training
010 bmw tpm management training010 bmw tpm management training
010 bmw tpm management training
Dr Fereidoun Dejahang
 
TPM - Total Productive Maintenance
TPM - Total Productive MaintenanceTPM - Total Productive Maintenance
TPM - Total Productive Maintenance
MR. RAHMAT ULLAH
 
Lean manufacturing basics
Lean manufacturing basicsLean manufacturing basics
Lean manufacturing basics
sarah bridge
 
Lean manufacturing
Lean manufacturing Lean manufacturing
Lean manufacturing
Andrew Schwartz
 
TPM Implementation Strategy
TPM Implementation StrategyTPM Implementation Strategy
TPM Implementation Strategy
Anand Subramaniam
 

What's hot (20)

Production Line OEE (Overall Equipment Effectiveness)
Production Line OEE (Overall Equipment Effectiveness)Production Line OEE (Overall Equipment Effectiveness)
Production Line OEE (Overall Equipment Effectiveness)
 
Lean Manufacturing - An Overview
Lean Manufacturing - An OverviewLean Manufacturing - An Overview
Lean Manufacturing - An Overview
 
Lean Manufacturing Training
Lean Manufacturing TrainingLean Manufacturing Training
Lean Manufacturing Training
 
Aim of tpm 16 losses/7 Steps of Jhisu Hozen
Aim of tpm 16 losses/7 Steps of Jhisu HozenAim of tpm 16 losses/7 Steps of Jhisu Hozen
Aim of tpm 16 losses/7 Steps of Jhisu Hozen
 
TPM: Autonomous Maintenance
TPM: Autonomous MaintenanceTPM: Autonomous Maintenance
TPM: Autonomous Maintenance
 
TPM Activity
TPM ActivityTPM Activity
TPM Activity
 
Lean manufacturing
Lean manufacturingLean manufacturing
Lean manufacturing
 
Autonomous maintenance Jishu Hozen
Autonomous maintenance Jishu HozenAutonomous maintenance Jishu Hozen
Autonomous maintenance Jishu Hozen
 
tpm (total productive maintenance)
tpm (total productive maintenance)tpm (total productive maintenance)
tpm (total productive maintenance)
 
Overall Equipment Effectiveness
Overall Equipment EffectivenessOverall Equipment Effectiveness
Overall Equipment Effectiveness
 
Jishu hozen
Jishu  hozenJishu  hozen
Jishu hozen
 
Lean manufacturing ppt
Lean manufacturing pptLean manufacturing ppt
Lean manufacturing ppt
 
Training module 4 m change
Training module   4 m changeTraining module   4 m change
Training module 4 m change
 
Total Productive Maintenance (TPM)
Total Productive Maintenance (TPM)Total Productive Maintenance (TPM)
Total Productive Maintenance (TPM)
 
TPM for lean manufacturing chp4 step of “jlshu hozen “activities
TPM for lean manufacturing  chp4 step of “jlshu hozen “activitiesTPM for lean manufacturing  chp4 step of “jlshu hozen “activities
TPM for lean manufacturing chp4 step of “jlshu hozen “activities
 
010 bmw tpm management training
010 bmw tpm management training010 bmw tpm management training
010 bmw tpm management training
 
TPM - Total Productive Maintenance
TPM - Total Productive MaintenanceTPM - Total Productive Maintenance
TPM - Total Productive Maintenance
 
Lean manufacturing basics
Lean manufacturing basicsLean manufacturing basics
Lean manufacturing basics
 
Lean manufacturing
Lean manufacturing Lean manufacturing
Lean manufacturing
 
TPM Implementation Strategy
TPM Implementation StrategyTPM Implementation Strategy
TPM Implementation Strategy
 

Similar to [Partial Preview:] Overall Equipment Effectiveness (OEE)

TPM: Planned Maintenance
TPM: Planned MaintenanceTPM: Planned Maintenance
TPM: Planned Maintenance
Operational Excellence Consulting
 
TPM
TPMTPM
Conference presentation-farinas-maintenance-2011
Conference presentation-farinas-maintenance-2011Conference presentation-farinas-maintenance-2011
Conference presentation-farinas-maintenance-2011
Sushil Anand
 
lean & agile
lean & agilelean & agile
lean & agile
Raheel Shafiq
 
The Critical KPI to drive Manufacturing Productivity
The Critical KPI to drive Manufacturing ProductivityThe Critical KPI to drive Manufacturing Productivity
The Critical KPI to drive Manufacturing Productivity
Jason Corder
 
OEE - The Critical KPI to Drive Manufacturing Productivity
OEE - The Critical KPI to Drive Manufacturing ProductivityOEE - The Critical KPI to Drive Manufacturing Productivity
OEE - The Critical KPI to Drive Manufacturing Productivity
Parsec_Automation_Corp
 
The Critical KPI to Drive Manufacturing Productivity
The Critical KPI to Drive Manufacturing ProductivityThe Critical KPI to Drive Manufacturing Productivity
The Critical KPI to Drive Manufacturing Productivity
Corey Vodvarka
 
TPM: Quality Maintenance (Hinshitsu Hozen)
TPM: Quality Maintenance (Hinshitsu Hozen)TPM: Quality Maintenance (Hinshitsu Hozen)
TPM: Quality Maintenance (Hinshitsu Hozen)
Operational Excellence Consulting
 
TPM: Focused Improvement (Kobetsu Kaizen)
TPM: Focused Improvement (Kobetsu Kaizen)TPM: Focused Improvement (Kobetsu Kaizen)
TPM: Focused Improvement (Kobetsu Kaizen)
Operational Excellence Consulting
 
Standard Work
Standard WorkStandard Work
Leveraging OEE to Minimize Downtime and Maximize Performance
Leveraging OEE to Minimize Downtime and Maximize PerformanceLeveraging OEE to Minimize Downtime and Maximize Performance
Leveraging OEE to Minimize Downtime and Maximize Performance
SafetyChain Software
 
IMPROVING EQUIPMENT PERFORMANCE
IMPROVING EQUIPMENT PERFORMANCEIMPROVING EQUIPMENT PERFORMANCE
IMPROVING EQUIPMENT PERFORMANCE
DrBiz Arikrishnan
 
MAINTENANCE , advanced management
MAINTENANCE , advanced managementMAINTENANCE , advanced management
MAINTENANCE , advanced management
rushdi3
 
Total productivity maintenance
Total productivity maintenanceTotal productivity maintenance
Total productivity maintenance
FELIX JONATHAN
 
oecawesfearegegrtgtgesfvtrhujhgfdewrdee.pptx
oecawesfearegegrtgtgesfvtrhujhgfdewrdee.pptxoecawesfearegegrtgtgesfvtrhujhgfdewrdee.pptx
oecawesfearegegrtgtgesfvtrhujhgfdewrdee.pptx
romeeranjan008
 
Tpm by drh.
Tpm by drh.Tpm by drh.
Equipment reliability l1
Equipment reliability l1Equipment reliability l1
Equipment reliability l1
Matthew Clemens
 
OLE training
OLE trainingOLE training
OLE training
Jitesh Gaurav
 
Ole training
Ole trainingOle training
Ole training
Jitesh Gaurav
 
Tpm (group 8)
Tpm (group 8)Tpm (group 8)
Tpm (group 8)
Jitesh Gaurav
 

Similar to [Partial Preview:] Overall Equipment Effectiveness (OEE) (20)

TPM: Planned Maintenance
TPM: Planned MaintenanceTPM: Planned Maintenance
TPM: Planned Maintenance
 
TPM
TPMTPM
TPM
 
Conference presentation-farinas-maintenance-2011
Conference presentation-farinas-maintenance-2011Conference presentation-farinas-maintenance-2011
Conference presentation-farinas-maintenance-2011
 
lean & agile
lean & agilelean & agile
lean & agile
 
The Critical KPI to drive Manufacturing Productivity
The Critical KPI to drive Manufacturing ProductivityThe Critical KPI to drive Manufacturing Productivity
The Critical KPI to drive Manufacturing Productivity
 
OEE - The Critical KPI to Drive Manufacturing Productivity
OEE - The Critical KPI to Drive Manufacturing ProductivityOEE - The Critical KPI to Drive Manufacturing Productivity
OEE - The Critical KPI to Drive Manufacturing Productivity
 
The Critical KPI to Drive Manufacturing Productivity
The Critical KPI to Drive Manufacturing ProductivityThe Critical KPI to Drive Manufacturing Productivity
The Critical KPI to Drive Manufacturing Productivity
 
TPM: Quality Maintenance (Hinshitsu Hozen)
TPM: Quality Maintenance (Hinshitsu Hozen)TPM: Quality Maintenance (Hinshitsu Hozen)
TPM: Quality Maintenance (Hinshitsu Hozen)
 
TPM: Focused Improvement (Kobetsu Kaizen)
TPM: Focused Improvement (Kobetsu Kaizen)TPM: Focused Improvement (Kobetsu Kaizen)
TPM: Focused Improvement (Kobetsu Kaizen)
 
Standard Work
Standard WorkStandard Work
Standard Work
 
Leveraging OEE to Minimize Downtime and Maximize Performance
Leveraging OEE to Minimize Downtime and Maximize PerformanceLeveraging OEE to Minimize Downtime and Maximize Performance
Leveraging OEE to Minimize Downtime and Maximize Performance
 
IMPROVING EQUIPMENT PERFORMANCE
IMPROVING EQUIPMENT PERFORMANCEIMPROVING EQUIPMENT PERFORMANCE
IMPROVING EQUIPMENT PERFORMANCE
 
MAINTENANCE , advanced management
MAINTENANCE , advanced managementMAINTENANCE , advanced management
MAINTENANCE , advanced management
 
Total productivity maintenance
Total productivity maintenanceTotal productivity maintenance
Total productivity maintenance
 
oecawesfearegegrtgtgesfvtrhujhgfdewrdee.pptx
oecawesfearegegrtgtgesfvtrhujhgfdewrdee.pptxoecawesfearegegrtgtgesfvtrhujhgfdewrdee.pptx
oecawesfearegegrtgtgesfvtrhujhgfdewrdee.pptx
 
Tpm by drh.
Tpm by drh.Tpm by drh.
Tpm by drh.
 
Equipment reliability l1
Equipment reliability l1Equipment reliability l1
Equipment reliability l1
 
OLE training
OLE trainingOLE training
OLE training
 
Ole training
Ole trainingOle training
Ole training
 
Tpm (group 8)
Tpm (group 8)Tpm (group 8)
Tpm (group 8)
 

More from Operational Excellence Consulting

5 Whys Analysis Toolkit: Uncovering Root Causes with Precision
5 Whys Analysis Toolkit: Uncovering Root Causes with Precision5 Whys Analysis Toolkit: Uncovering Root Causes with Precision
5 Whys Analysis Toolkit: Uncovering Root Causes with Precision
Operational Excellence Consulting
 
MECE (Mutually Exclusive, Collectively Exhaustive) Principle
MECE (Mutually Exclusive, Collectively Exhaustive) PrincipleMECE (Mutually Exclusive, Collectively Exhaustive) Principle
MECE (Mutually Exclusive, Collectively Exhaustive) Principle
Operational Excellence Consulting
 
Digital Transformation Frameworks: Driving Digital Excellence
Digital Transformation Frameworks: Driving Digital ExcellenceDigital Transformation Frameworks: Driving Digital Excellence
Digital Transformation Frameworks: Driving Digital Excellence
Operational Excellence Consulting
 
Innovation Management Frameworks: Your Guide to Creativity & Innovation
Innovation Management Frameworks: Your Guide to Creativity & InnovationInnovation Management Frameworks: Your Guide to Creativity & Innovation
Innovation Management Frameworks: Your Guide to Creativity & Innovation
Operational Excellence Consulting
 
Sustainability: Balancing the Environment, Equity & Economy
Sustainability: Balancing the Environment, Equity & EconomySustainability: Balancing the Environment, Equity & Economy
Sustainability: Balancing the Environment, Equity & Economy
Operational Excellence Consulting
 
The McKinsey 7S Framework: A Holistic Approach to Harmonizing All Parts of th...
The McKinsey 7S Framework: A Holistic Approach to Harmonizing All Parts of th...The McKinsey 7S Framework: A Holistic Approach to Harmonizing All Parts of th...
The McKinsey 7S Framework: A Holistic Approach to Harmonizing All Parts of th...
Operational Excellence Consulting
 
ISO 37002:2021 (Whistleblowing Management Systems) Awareness Training
ISO 37002:2021 (Whistleblowing Management Systems) Awareness TrainingISO 37002:2021 (Whistleblowing Management Systems) Awareness Training
ISO 37002:2021 (Whistleblowing Management Systems) Awareness Training
Operational Excellence Consulting
 
ISO 37000:2021 (Governance of Organizations) Awareness Training
ISO 37000:2021 (Governance of Organizations) Awareness TrainingISO 37000:2021 (Governance of Organizations) Awareness Training
ISO 37000:2021 (Governance of Organizations) Awareness Training
Operational Excellence Consulting
 
Six Sigma Improvement Process: Transforming Processes, Elevating Performance
Six Sigma Improvement Process: Transforming Processes, Elevating PerformanceSix Sigma Improvement Process: Transforming Processes, Elevating Performance
Six Sigma Improvement Process: Transforming Processes, Elevating Performance
Operational Excellence Consulting
 
Kaizen Event Guide: Transforming Challenges into Opportunities
Kaizen Event Guide: Transforming Challenges into OpportunitiesKaizen Event Guide: Transforming Challenges into Opportunities
Kaizen Event Guide: Transforming Challenges into Opportunities
Operational Excellence Consulting
 
Kaizen: Elevating Continuous Improvement for Success
Kaizen: Elevating Continuous Improvement for SuccessKaizen: Elevating Continuous Improvement for Success
Kaizen: Elevating Continuous Improvement for Success
Operational Excellence Consulting
 
Strategic Planning: A3 Hoshin Planning Process
Strategic Planning: A3 Hoshin Planning ProcessStrategic Planning: A3 Hoshin Planning Process
Strategic Planning: A3 Hoshin Planning Process
Operational Excellence Consulting
 
A3 Problem Solving Process & Tools
A3 Problem Solving Process & ToolsA3 Problem Solving Process & Tools
A3 Problem Solving Process & Tools
Operational Excellence Consulting
 
Digital Strategic Business Planning Methodology
Digital Strategic Business Planning MethodologyDigital Strategic Business Planning Methodology
Digital Strategic Business Planning Methodology
Operational Excellence Consulting
 
Root Cause Analysis (RCA)
Root Cause Analysis (RCA)Root Cause Analysis (RCA)
Root Cause Analysis (RCA)
Operational Excellence Consulting
 
Business Process Reengineering (BPR)
Business Process Reengineering (BPR)Business Process Reengineering (BPR)
Business Process Reengineering (BPR)
Operational Excellence Consulting
 
5 Steps of Problem Solving
5 Steps of Problem Solving5 Steps of Problem Solving
5 Steps of Problem Solving
Operational Excellence Consulting
 
Seven Advanced Tools of Quality (Seven Advanced QC Tools)
Seven Advanced Tools of Quality (Seven Advanced QC Tools)Seven Advanced Tools of Quality (Seven Advanced QC Tools)
Seven Advanced Tools of Quality (Seven Advanced QC Tools)
Operational Excellence Consulting
 
Seven Basic Tools of Quality (Seven Basic QC Tools)
Seven Basic Tools of Quality (Seven Basic QC Tools)Seven Basic Tools of Quality (Seven Basic QC Tools)
Seven Basic Tools of Quality (Seven Basic QC Tools)
Operational Excellence Consulting
 
Problem Solving & Visualization Tools
Problem Solving & Visualization ToolsProblem Solving & Visualization Tools
Problem Solving & Visualization Tools
Operational Excellence Consulting
 

More from Operational Excellence Consulting (20)

5 Whys Analysis Toolkit: Uncovering Root Causes with Precision
5 Whys Analysis Toolkit: Uncovering Root Causes with Precision5 Whys Analysis Toolkit: Uncovering Root Causes with Precision
5 Whys Analysis Toolkit: Uncovering Root Causes with Precision
 
MECE (Mutually Exclusive, Collectively Exhaustive) Principle
MECE (Mutually Exclusive, Collectively Exhaustive) PrincipleMECE (Mutually Exclusive, Collectively Exhaustive) Principle
MECE (Mutually Exclusive, Collectively Exhaustive) Principle
 
Digital Transformation Frameworks: Driving Digital Excellence
Digital Transformation Frameworks: Driving Digital ExcellenceDigital Transformation Frameworks: Driving Digital Excellence
Digital Transformation Frameworks: Driving Digital Excellence
 
Innovation Management Frameworks: Your Guide to Creativity & Innovation
Innovation Management Frameworks: Your Guide to Creativity & InnovationInnovation Management Frameworks: Your Guide to Creativity & Innovation
Innovation Management Frameworks: Your Guide to Creativity & Innovation
 
Sustainability: Balancing the Environment, Equity & Economy
Sustainability: Balancing the Environment, Equity & EconomySustainability: Balancing the Environment, Equity & Economy
Sustainability: Balancing the Environment, Equity & Economy
 
The McKinsey 7S Framework: A Holistic Approach to Harmonizing All Parts of th...
The McKinsey 7S Framework: A Holistic Approach to Harmonizing All Parts of th...The McKinsey 7S Framework: A Holistic Approach to Harmonizing All Parts of th...
The McKinsey 7S Framework: A Holistic Approach to Harmonizing All Parts of th...
 
ISO 37002:2021 (Whistleblowing Management Systems) Awareness Training
ISO 37002:2021 (Whistleblowing Management Systems) Awareness TrainingISO 37002:2021 (Whistleblowing Management Systems) Awareness Training
ISO 37002:2021 (Whistleblowing Management Systems) Awareness Training
 
ISO 37000:2021 (Governance of Organizations) Awareness Training
ISO 37000:2021 (Governance of Organizations) Awareness TrainingISO 37000:2021 (Governance of Organizations) Awareness Training
ISO 37000:2021 (Governance of Organizations) Awareness Training
 
Six Sigma Improvement Process: Transforming Processes, Elevating Performance
Six Sigma Improvement Process: Transforming Processes, Elevating PerformanceSix Sigma Improvement Process: Transforming Processes, Elevating Performance
Six Sigma Improvement Process: Transforming Processes, Elevating Performance
 
Kaizen Event Guide: Transforming Challenges into Opportunities
Kaizen Event Guide: Transforming Challenges into OpportunitiesKaizen Event Guide: Transforming Challenges into Opportunities
Kaizen Event Guide: Transforming Challenges into Opportunities
 
Kaizen: Elevating Continuous Improvement for Success
Kaizen: Elevating Continuous Improvement for SuccessKaizen: Elevating Continuous Improvement for Success
Kaizen: Elevating Continuous Improvement for Success
 
Strategic Planning: A3 Hoshin Planning Process
Strategic Planning: A3 Hoshin Planning ProcessStrategic Planning: A3 Hoshin Planning Process
Strategic Planning: A3 Hoshin Planning Process
 
A3 Problem Solving Process & Tools
A3 Problem Solving Process & ToolsA3 Problem Solving Process & Tools
A3 Problem Solving Process & Tools
 
Digital Strategic Business Planning Methodology
Digital Strategic Business Planning MethodologyDigital Strategic Business Planning Methodology
Digital Strategic Business Planning Methodology
 
Root Cause Analysis (RCA)
Root Cause Analysis (RCA)Root Cause Analysis (RCA)
Root Cause Analysis (RCA)
 
Business Process Reengineering (BPR)
Business Process Reengineering (BPR)Business Process Reengineering (BPR)
Business Process Reengineering (BPR)
 
5 Steps of Problem Solving
5 Steps of Problem Solving5 Steps of Problem Solving
5 Steps of Problem Solving
 
Seven Advanced Tools of Quality (Seven Advanced QC Tools)
Seven Advanced Tools of Quality (Seven Advanced QC Tools)Seven Advanced Tools of Quality (Seven Advanced QC Tools)
Seven Advanced Tools of Quality (Seven Advanced QC Tools)
 
Seven Basic Tools of Quality (Seven Basic QC Tools)
Seven Basic Tools of Quality (Seven Basic QC Tools)Seven Basic Tools of Quality (Seven Basic QC Tools)
Seven Basic Tools of Quality (Seven Basic QC Tools)
 
Problem Solving & Visualization Tools
Problem Solving & Visualization ToolsProblem Solving & Visualization Tools
Problem Solving & Visualization Tools
 

Recently uploaded

Path to the next normal collection McKinsey
Path to the next normal collection McKinseyPath to the next normal collection McKinsey
Path to the next normal collection McKinsey
MajIman2
 
ハワイ大学留学プログラム最終プレゼン「ハワイ大学マノア校におけるシェアリングモビリティの提案」
ハワイ大学留学プログラム最終プレゼン「ハワイ大学マノア校におけるシェアリングモビリティの提案」ハワイ大学留学プログラム最終プレゼン「ハワイ大学マノア校におけるシェアリングモビリティの提案」
ハワイ大学留学プログラム最終プレゼン「ハワイ大学マノア校におけるシェアリングモビリティの提案」
Katsuya Shiratori
 
AI and Best Use Cases for Your Personal Life.pptx
AI and Best Use Cases for Your Personal Life.pptxAI and Best Use Cases for Your Personal Life.pptx
AI and Best Use Cases for Your Personal Life.pptx
Brian Frerichs
 
2024's Top Chief Revenue Officers to Follow.pdf
2024's Top Chief Revenue Officers to Follow.pdf2024's Top Chief Revenue Officers to Follow.pdf
2024's Top Chief Revenue Officers to Follow.pdf
THECIOWORLD
 
California Carpet Stewardship Program Q1 2024
California Carpet Stewardship Program Q1 2024California Carpet Stewardship Program Q1 2024
California Carpet Stewardship Program Q1 2024
Carpet America Recovery Effort
 
An individual's carbon footprint........
An individual's carbon footprint........An individual's carbon footprint........
An individual's carbon footprint........
Esgagile
 
upGrad_Case_Study_by_Himanshu_Singh.pptx
upGrad_Case_Study_by_Himanshu_Singh.pptxupGrad_Case_Study_by_Himanshu_Singh.pptx
upGrad_Case_Study_by_Himanshu_Singh.pptx
himanshubclubofgsv
 
ShotOniPhone campaign by Vancy macwan.pptx
ShotOniPhone campaign by Vancy macwan.pptxShotOniPhone campaign by Vancy macwan.pptx
ShotOniPhone campaign by Vancy macwan.pptx
macwanvancy
 
Top 10 Tech Leaders Revolutionizing Industries, 2024.pdf
Top 10 Tech Leaders Revolutionizing Industries, 2024.pdfTop 10 Tech Leaders Revolutionizing Industries, 2024.pdf
Top 10 Tech Leaders Revolutionizing Industries, 2024.pdf
CIO Look Magazine
 
Standard Operating Procedure for Digital Marketing
Standard Operating Procedure for Digital MarketingStandard Operating Procedure for Digital Marketing
Standard Operating Procedure for Digital Marketing
Dipendra Prasad Poudel
 
Maximise your Business Potential: Annual Planning Workshop
Maximise your Business Potential: Annual Planning WorkshopMaximise your Business Potential: Annual Planning Workshop
Maximise your Business Potential: Annual Planning Workshop
chris908327
 
How to use lace front wig importance and
How to use lace front wig importance andHow to use lace front wig importance and
How to use lace front wig importance and
kaporej505
 
Jumpstart Email Marketing_ Your Guide for Beginners in 2024
Jumpstart Email Marketing_ Your Guide for Beginners in 2024Jumpstart Email Marketing_ Your Guide for Beginners in 2024
Jumpstart Email Marketing_ Your Guide for Beginners in 2024
Digital-GoldMine-Hub
 
84th Marketing Club (OTC Marketing) Dr.Mahmoud Hamed 23rd Cairo.pdf
84th Marketing Club (OTC Marketing) Dr.Mahmoud Hamed 23rd Cairo.pdf84th Marketing Club (OTC Marketing) Dr.Mahmoud Hamed 23rd Cairo.pdf
84th Marketing Club (OTC Marketing) Dr.Mahmoud Hamed 23rd Cairo.pdf
ahmed614380
 
Virtual Paralegal Services: Your Remote Legal Assistant
Virtual Paralegal Services: Your Remote Legal AssistantVirtual Paralegal Services: Your Remote Legal Assistant
Virtual Paralegal Services: Your Remote Legal Assistant
Eternity Paralegal Services
 
Gym business MODEL .pdf .
Gym business MODEL .pdf                 .Gym business MODEL .pdf                 .
Gym business MODEL .pdf .
Divyanshu56740
 
India's Most Generative AI and Chatbot Service Providers to Follow 2024.pdf
India's Most Generative AI and Chatbot Service Providers to Follow 2024.pdfIndia's Most Generative AI and Chatbot Service Providers to Follow 2024.pdf
India's Most Generative AI and Chatbot Service Providers to Follow 2024.pdf
insightssuccess2
 
EN_Chinese-Automotive-in-SEA-Vero-White-Paper_2023.pdf
EN_Chinese-Automotive-in-SEA-Vero-White-Paper_2023.pdfEN_Chinese-Automotive-in-SEA-Vero-White-Paper_2023.pdf
EN_Chinese-Automotive-in-SEA-Vero-White-Paper_2023.pdf
ivanparu86
 
A Playbook for Solo & Siloed Data Science Practitioners
A Playbook for Solo & Siloed Data Science PractitionersA Playbook for Solo & Siloed Data Science Practitioners
A Playbook for Solo & Siloed Data Science Practitioners
Tim Wilson
 
Đề Kiểm Tra Global Success 9 (Nguyễn Hoàng Thanh Ly) REVIEW 1.docx
Đề Kiểm Tra Global Success 9 (Nguyễn Hoàng Thanh Ly) REVIEW 1.docxĐề Kiểm Tra Global Success 9 (Nguyễn Hoàng Thanh Ly) REVIEW 1.docx
Đề Kiểm Tra Global Success 9 (Nguyễn Hoàng Thanh Ly) REVIEW 1.docx
tanlong7457
 

Recently uploaded (20)

Path to the next normal collection McKinsey
Path to the next normal collection McKinseyPath to the next normal collection McKinsey
Path to the next normal collection McKinsey
 
ハワイ大学留学プログラム最終プレゼン「ハワイ大学マノア校におけるシェアリングモビリティの提案」
ハワイ大学留学プログラム最終プレゼン「ハワイ大学マノア校におけるシェアリングモビリティの提案」ハワイ大学留学プログラム最終プレゼン「ハワイ大学マノア校におけるシェアリングモビリティの提案」
ハワイ大学留学プログラム最終プレゼン「ハワイ大学マノア校におけるシェアリングモビリティの提案」
 
AI and Best Use Cases for Your Personal Life.pptx
AI and Best Use Cases for Your Personal Life.pptxAI and Best Use Cases for Your Personal Life.pptx
AI and Best Use Cases for Your Personal Life.pptx
 
2024's Top Chief Revenue Officers to Follow.pdf
2024's Top Chief Revenue Officers to Follow.pdf2024's Top Chief Revenue Officers to Follow.pdf
2024's Top Chief Revenue Officers to Follow.pdf
 
California Carpet Stewardship Program Q1 2024
California Carpet Stewardship Program Q1 2024California Carpet Stewardship Program Q1 2024
California Carpet Stewardship Program Q1 2024
 
An individual's carbon footprint........
An individual's carbon footprint........An individual's carbon footprint........
An individual's carbon footprint........
 
upGrad_Case_Study_by_Himanshu_Singh.pptx
upGrad_Case_Study_by_Himanshu_Singh.pptxupGrad_Case_Study_by_Himanshu_Singh.pptx
upGrad_Case_Study_by_Himanshu_Singh.pptx
 
ShotOniPhone campaign by Vancy macwan.pptx
ShotOniPhone campaign by Vancy macwan.pptxShotOniPhone campaign by Vancy macwan.pptx
ShotOniPhone campaign by Vancy macwan.pptx
 
Top 10 Tech Leaders Revolutionizing Industries, 2024.pdf
Top 10 Tech Leaders Revolutionizing Industries, 2024.pdfTop 10 Tech Leaders Revolutionizing Industries, 2024.pdf
Top 10 Tech Leaders Revolutionizing Industries, 2024.pdf
 
Standard Operating Procedure for Digital Marketing
Standard Operating Procedure for Digital MarketingStandard Operating Procedure for Digital Marketing
Standard Operating Procedure for Digital Marketing
 
Maximise your Business Potential: Annual Planning Workshop
Maximise your Business Potential: Annual Planning WorkshopMaximise your Business Potential: Annual Planning Workshop
Maximise your Business Potential: Annual Planning Workshop
 
How to use lace front wig importance and
How to use lace front wig importance andHow to use lace front wig importance and
How to use lace front wig importance and
 
Jumpstart Email Marketing_ Your Guide for Beginners in 2024
Jumpstart Email Marketing_ Your Guide for Beginners in 2024Jumpstart Email Marketing_ Your Guide for Beginners in 2024
Jumpstart Email Marketing_ Your Guide for Beginners in 2024
 
84th Marketing Club (OTC Marketing) Dr.Mahmoud Hamed 23rd Cairo.pdf
84th Marketing Club (OTC Marketing) Dr.Mahmoud Hamed 23rd Cairo.pdf84th Marketing Club (OTC Marketing) Dr.Mahmoud Hamed 23rd Cairo.pdf
84th Marketing Club (OTC Marketing) Dr.Mahmoud Hamed 23rd Cairo.pdf
 
Virtual Paralegal Services: Your Remote Legal Assistant
Virtual Paralegal Services: Your Remote Legal AssistantVirtual Paralegal Services: Your Remote Legal Assistant
Virtual Paralegal Services: Your Remote Legal Assistant
 
Gym business MODEL .pdf .
Gym business MODEL .pdf                 .Gym business MODEL .pdf                 .
Gym business MODEL .pdf .
 
India's Most Generative AI and Chatbot Service Providers to Follow 2024.pdf
India's Most Generative AI and Chatbot Service Providers to Follow 2024.pdfIndia's Most Generative AI and Chatbot Service Providers to Follow 2024.pdf
India's Most Generative AI and Chatbot Service Providers to Follow 2024.pdf
 
EN_Chinese-Automotive-in-SEA-Vero-White-Paper_2023.pdf
EN_Chinese-Automotive-in-SEA-Vero-White-Paper_2023.pdfEN_Chinese-Automotive-in-SEA-Vero-White-Paper_2023.pdf
EN_Chinese-Automotive-in-SEA-Vero-White-Paper_2023.pdf
 
A Playbook for Solo & Siloed Data Science Practitioners
A Playbook for Solo & Siloed Data Science PractitionersA Playbook for Solo & Siloed Data Science Practitioners
A Playbook for Solo & Siloed Data Science Practitioners
 
Đề Kiểm Tra Global Success 9 (Nguyễn Hoàng Thanh Ly) REVIEW 1.docx
Đề Kiểm Tra Global Success 9 (Nguyễn Hoàng Thanh Ly) REVIEW 1.docxĐề Kiểm Tra Global Success 9 (Nguyễn Hoàng Thanh Ly) REVIEW 1.docx
Đề Kiểm Tra Global Success 9 (Nguyễn Hoàng Thanh Ly) REVIEW 1.docx
 

[Partial Preview:] Overall Equipment Effectiveness (OEE)

  • 1. © Operational Excellence Consulting. All rights reserved. OVERALL EQUIPMENT EFFECTIVENESS Eliminate Losses, Improve OEE
  • 2. © Operational Excellence Consulting. All rights reserved. 2 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
  • 3. © Operational Excellence Consulting. All rights reserved. 3 Outline Copyrights of all the pictures used in this presentation are held by their respective owners. Understanding Equipment-related Losses 2 Introduction to TPM and OEE 1 Improving OEE 4 Measuring OEE 3
  • 4. © Operational Excellence Consulting. All rights reserved. 4 What is OEE? • Overall Equipment Effectiveness (OEE) is a measurement used in TPM to indicate how effectively machines are running • OEE is calculated from three underlying factors: § Availability § Performance § Quality • Each of these factors represents a different perspective of how close your manufacturing process is to perfect production
  • 5. © Operational Excellence Consulting. All rights reserved. 5 What is OEE? • Availability § A comparison of the potential operating time and the time in which the machine is actually making products • Performance (Efficiency) § A comparison of the actual output with what the machine should be producing in the same time • Quality § A comparison of the number of products made and the number of products that meet the customer’s specifications OEE = Availability X Performance X Quality
  • 6. © Operational Excellence Consulting. All rights reserved. 6 Why is OEE Important? • OEE is expressed as a percentage § It gives a complete picture of the machine’s “health” § Indicates not just how fast it can make parts but how much the potential output is limited due to lost availability or poor quality • Effectiveness focuses on the equipment, not the person • OEE measurement helps us to direct improvement efforts on the equipment or process
  • 7. © Operational Excellence Consulting. All rights reserved. 7 OEE: An Indicator of Equipment Health Overall Equipment Effectiveness Availability Breakdowns Setups & Adjustments Performance Reduced Speed Minor Stops & Idling Quality Defects & Rework Startup & Yield Loss Six Big Losses Source: Japan Institute of Plant Maintenance (JIPM)
  • 8. © Operational Excellence Consulting. All rights reserved. 8 Equipment Losses & OEE Six Big Losses Downtime Losses Quality Losses Speed Losses Fully Productive Time Net Operating Time Planned Production Time Operating Time Equipment Average total operating loss 30-50% Breakdowns Setups & Adjustments Reduced Speed Minor Stops & Idling Defects & Rework Startup & Yield Loss Breakdowns per machine (stopped longer than 10 mins) – less than once a month Setup/adjustment time – less than 10 mins Achieve ideal cycle times (design speed); increase 15% or more Minor stoppages and idling per machine – under 10 mins Rate (including products to be reworked) – less than 0.1% Startup yield – 99% or more of lot Ideal Cycle Time x Total Pcs Operating Time Good Pieces Total Pieces Operating Time Planned Production Time Availability Quality Performance Greater than 90% Throughput process - Greater than 99% Greater than 95% OEE Factors OEE = Availability x Performance x Quality Source: Adapted from ‘TPM for Supervisors’, Productivity Press Development Team
  • 9. © Operational Excellence Consulting. All rights reserved. 9 Six Big Equipment Losses Breakdowns Setups & Changeovers Reduced Speed Idling & Minor Stoppages Defects & Rework Startup (Yield) Loss 6 Big Equipment Losses § Conveyors § Transport § Automatic welders § Presses § Paint processes § Molding machines § Machine tools § Presses § Transfer devices § Sensors § Automated assembly § Grinding § Presses § Seam welding § Raw material § Components § Fuel Frequent Sites Function Maintenance Manufacturing Inspection Technical services Production engineering Source: TPM Team Guide, Productivity Press Development Team
  • 10. © Operational Excellence Consulting. All rights reserved. 10 Breakdown Losses • Largest of the six major equipment losses • Caused by equipment defects which require any kind of repair. Examples: § Tooling failures § Unplanned maintenance § General breakdowns § Equipment failure • Losses consist of downtime with labor and spare parts required to fix the equipment • Magnitude is measured by downtime
  • 11. © Operational Excellence Consulting. All rights reserved. 11 Minor Stoppage Losses • Caused by events such as machine halting, jamming, idling, misfeeds, blocked sensors, etc. • Generally, these losses cannot be recorded automatically without suitable instruments • Formula: Losses = 100% - Performance Rate • Many companies regard such minor stoppages as breakdowns in order to emphasize their importance, even though no damage has occurred to the equipment
  • 12. © Operational Excellence Consulting. All rights reserved. 12 Approaches for Eliminating Minor Stoppages Steps Hints 1. Get a clear idea of the loss Take a closer look at the losses from minor stoppages. See if you can express them numerically. 2. Take care of slight abnormalities Slight abnormalities in the product or the processing equipment (ones that may or may not cause trouble) should be looked at one by one and treated as real problems. 3. Analyze the current situation Observe the situation carefully and analyze it. Consider every condition you find, without worrying about how likely it is to cause trouble. 4. Investigate every factor; identify and treat all abnormal conditions Don’t be bound by previous criteria for judging what’s important. Analyze not only the malfunctions but also everything that might be a symptom as a malfunction. 5. Determine optimal conditions Don’t assume that machine or conveyor parts and units are currently attached and assembled in the most appropriate ways. Source: Focused Equipment Improvement for TPM Teams, by JIPM
  • 13. © Operational Excellence Consulting. All rights reserved. 13 Steps for Dealing with Speed Loss Compare the specifications and the current state Pinpoint the problem areas Take measures against the problem areas Confirm the results Maintain optimal conditions Investigate the current state Investigate the process principles Investigate the equipment idle time •Failure records •Defect records •Cycle diagram •Vibration •Current value •Static precision Investigate past problems •Types of breakdowns and their handling •Shifts in the defect rate •Time series-type speed shift •Restore •Get rid of slight abnormalities •Modify equipment as needed to maintain conditions •Design specifications •Ideal Values •Manual for daily inspection standards •Manual for periodic inspection standards •Problems with the principles •Machining conditions Source: Focused Equipment Improvement for TPM Teams, by JIPM
  • 14. © Operational Excellence Consulting. All rights reserved. 14 Quality Defect & Rework Losses • Caused by off-specification or defective products § Rework § Scrap • Losses consist of labor required to rework the products and the cost of the material to be scrapped • Measured by the ratio of quality products to total production • Sometimes designated as “quality defects in process” in order to distinguish from defective products during start-up and adjustment operations
  • 15. © Operational Excellence Consulting. All rights reserved. 15 Ideas for Reducing Chronic Defects Ideas for Reducing Chronic Defects Look beyond the obvious • Don’t worry too much about what has the most influence • Think systematically and take measures against every abnormality Review all factors carefully • Think systematically about the form the defects took to understand what the factors are • Give all the possible reason for them Take abnormal conditions seriously • Quantify the abnormality • Use the inspection technology for your equipment to find signs of abnormal conditions Clarify the relationship between equipment and quality factors • Determine the proper condition for each component to produce a quality result • Manage the components according to those principles Monitor changes in the factors that need to be managed • Understand changes over time through examination, measurement, and spot checks • Determine treatment thresholds Source: Focused Equipment Improvement for TPM Teams, by JIPM
  • 16. © Operational Excellence Consulting. All rights reserved. 16 Strategies for Zero Breakdowns • Restore equipment • Maintain basic equipment conditions • Adhere to standard operating procedures • Improve operator maintenance skills • Don’t stop at quick fixes • Correct design weaknesses • Study breakdowns relentlessly
  • 17. © Operational Excellence Consulting. All rights reserved. 17 Measuring OEE Collecting OEE Data Processing OEE Data Reporting OEE Results • Define what to measure • Make data collection simple • The OEE calculation • Storing OEE data • Share OEE results • Use charts for visual impact
  • 18. © Operational Excellence Consulting. All rights reserved. 18 1. Collecting OEE Data • Make data collection simple § The purpose of tracking OEE is not to make extra paperwork for operators § Most likely you are already a lot of the data required for the OEE calculation § One well-designed form can make it easy to log the OEE data as well as other data you need to register during daily production
  • 19. © Operational Excellence Consulting. All rights reserved. 19 2. Processing OEE Data Availability = Operating Time / Planned Production Time Performance = (Ideal Cycle Time x Total Pieces) / Operating Time Quality = Good Pieces / Total Pieces OEE = Availability X Performance X Quality
  • 20. © Operational Excellence Consulting. All rights reserved. 20 3. Reporting OEE Results • Sharing OEE information is critical for reducing equipment- related losses • Operators – the people who are closest to the equipment – need to be aware of OEE results • Reporting OEE information on charts in the workplace is key to improving future results
  • 21. © Operational Excellence Consulting. All rights reserved. 21 Discussion Questions on OEE 1. Is it practical to use OEE as a regular measurable? 2. Should OEE number be as high as possible? 3. Is it possible to have OEE higher than 100%? 4. Should you deduct certain periods (e.g. meetings, planned maintenance) when counting available time?
  • 22. © Operational Excellence Consulting. All rights reserved. 22 Improving OEE • We measure OEE to monitor the condition of the equipment • The purpose of measuring OEE is to drive improvement • Sustained improvement requires a dedicated approach, with management support
  • 23. © Operational Excellence Consulting. All rights reserved. 23 Improvement Goals for the 6 Big Losses Type of Loss Goal Explanation 1. Breakdowns 0 Should be zero for all equipment 2. Setups and adjustments minimize As short as possible; less than 10 mins with zero adjustments 3. Reduced speed 0 Should match or – with improvements – exceed equipment specifications 4. Minor stoppages 0 Should be zero for all equipment 5. Defects and rework 0 Extent may vary, but goal should be expressed in parts per million (ppm) 6. Startup loss minimize Source: TPM for Every Operator, Productivity Press Development Team
  • 24. © Operational Excellence Consulting. All rights reserved. 24 Approaches to Improving OEE 1. 5 Why Analysis 2. Autonomous Maintenance 3. Focused Equipment & Process Improvement 4. Quick Changeover 5. Poka Yoke (Mistake-Proofing) 6. P-M Analysis
  • 25. © Operational Excellence Consulting. All rights reserved. 25 5 Whys Analysis – Example 1 Why? Answer 1 Why is there oil on the floor? Oil leaks from the cylinder rod when activated. 2 Why did oil leak? The O-ring was cut. 3 Why was the O-ring cut? The rod was flawed. 4 Why was the rod flawed? Dirt in the oil abrades the rod. 5 Why did dirt get in the oil? There are holes and gaps on the upper plate of the tank. Source: OEE for Operators, Productivity Press Development Team
  • 26. © Operational Excellence Consulting. All rights reserved. 26 The Three Stages of SMED Before SMED Internal and external setup not differentiated Stage 1 Separate internal & external setup Stage 2 Convert internal setup to external setup Stage 3 Streamline all aspects of setup
  • 27. © Operational Excellence Consulting. All rights reserved. 27 Improving OEE through Kaizen Event Focused Improvement Source: TPM Team Guide, Productivity Press Development Team 1. Set TPM Targets 2. Form a Team & Collect Data 3. Analyze Breakdowns & Suggest Improvements 4. Track & Record Performance 5. Achieve & Verify Targets 6. Report Results & Recognize Team
  • 28. © Operational Excellence Consulting. All rights reserved. 28 The 8 Steps of P-M Analysis Identify Constituent Conditions 3 Conduct a Physical Analysis 2 Clarify the Phenomenon 1 Study 4Ms for Causal Factors 4 Determine Abnormalities to be Addressed 7 Survey Causal Factors for Abnormalities 6 Establish Optimal Conditions (Standard Values) 5 Propose and Make Improvements 8 Source: Based on Kunio, et al.
  • 29. © Operational Excellence Consulting. All rights reserved. 29 How to Sustain TPM & OEE • Engaging employees • Aim for early success • Providing active leadership • Share success stories • Rewards and recognition • Continuously improve OEE • Evolving the TPM initiative over time and integration with Lean
  • 30. © Operational Excellence Consulting. All rights reserved. 30 Operational Excellence Consulting is a management training and consulting firm that assists organizations in improving business performance and effectiveness. Based in Singapore, the firm’s mission is to create business value for organizations through innovative design and operational excellence management training and consulting solutions. For more information, please visit www.oeconsulting.com.sg