What Food Manufacturers Need to Know about Measuring OEE - London Consulting Group | SafetyChain
•
1 like•282 views
This document summarizes a presentation about measuring Overall Equipment Effectiveness (OEE) in food manufacturing. Some key points: - OEE measures availability, performance, and quality of production equipment. It reveals reasons for underperformance like downtime, slow speeds, and rejects. - Industry 4.0 technologies can help track detailed OEE data in real-time from sensors and use analytics to provide insights. This supports continuous improvement programs. - A successful OEE program requires comprehensive data collection, continuous analysis of downtime root causes, cross-functional problem-solving teams, and linking OEE metrics to cost analysis. - Special cases like fluids, slow processes, and critical yields may require tweaking
Recommended
More Related Content
Similar to What Food Manufacturers Need to Know about Measuring OEE - London Consulting Group | SafetyChain
Similar to What Food Manufacturers Need to Know about Measuring OEE - London Consulting Group | SafetyChain (20)
More from SafetyChain Software
More from SafetyChain Software (20)
Recently uploaded
Recently uploaded (20)
What Food Manufacturers Need to Know about Measuring OEE - London Consulting Group | SafetyChain
- 1. What Food Manufacturers Need to Know About Measuring OEE Presented By: Daniel Campos, London Consulting Group Beyond Compliance Webinar & Podcast Series
- 2. Beyond Compliance Webinar Series SafetyChain.com The Series Webinar & Podcast Series BEYONDCOMPLIANCE
- 3. Beyond Compliance Webinar Series SafetyChain.com The Sponsor Food Quality Management System üFood Safety üFood Quality üSupplier Compliance Learn more at SafetyChain.com
- 4. Beyond Compliance Webinar Series SafetyChain.com Before We Get Started HELPFUL TIPS üInformal but professional format üAsk Questions (Q&A at end) üOnly panelists are displayed üRecording link will be shared üAudio issues: use call-in number
- 5. TRAINING TOPIC What Food Manufacturers Need to Know About Measuring OEE Presented By: Daniel Campos, Managing Partner, London Consulting Group • 15+ years of experience serving Fortune- 500 companies and family-owned business in the USA, Mexico and the Americas • Expert in food manufacturing
- 7. shapeyour business shapeyour business Over 25 years of experience Founded in 1991, operating in the Americas, the Caribbean and Spain through 11 regional offices North America Central America South America Caribbean Spain
- 9. shapeyour business OurExperienceSolutions Strategic Planning Marketing and Sales People & Organization Supply Chain Management Operations Information Technology Back Office / Shared Services Operational Due Diligence Certifications
- 10. shapeyour business shapeyour business OEE – What is it and how does it affect me? The effects of Industry 4.0 in OEE measurements Bringing it all together to impact the bottom line Common pitfalls to avoid Topicstoday
- 11. shapeyour business shapeyour business 7 Ways to influence the key drivers of OEE & uncover hidden dollars in your plant The secret to pre-op inspections that helps avert significant performance bottlenecks Tips to measure OEE the right way, including a peek at the formulas today’s leading food manufacturers are using How to turn OEE into your biggest competitive advantage Technologies that easily and accurately measure OEE Goalsfortoday
- 13. shapeyour business shapeyour business OEE – Overall Equipment Effectiveness Measure of achievement of the machine at standard Think of it as the breakdown of reasons why your equipment is underperforming – either because of stoppages, slow rates of processing or incidence of rejects. For friends: Availability*performance*quality It’sabouttime! (andrateandyield) OEE–BasicConcepts
- 14. shapeyour business shapeyour business Production line works 8-hour shift, machine makes 50 units/hr Let’sexploreaneasy example OEE–BasicConcepts 8 hrs x 50 units/hr = 400 units per shift 8:00am 4:00pm
- 15. shapeyour business shapeyour business Production line works 8-hour shift, machine makes 50 units/hr Let’sexploreaneasy example OEE–BasicConcepts 8 hrs x 50 units/hr = 400 units per shift 8:00am 4:00pm 7 hrs x 50 units/hr = 350 units per shift 1 hr set up
- 16. shapeyour business shapeyour business Production line works 8-hour shift, machine makes 50 units/hr Let’sexploreaneasy example OEE–BasicConcepts 8 hrs x 50 units/hr = 400 units per shift 8:00am 4:00pm Actually ran at 7 hrs x 40 units/hr = 280 units per shift 1 hr set up Of the expected 280 units the warehouse received 250
- 17. shapeyour business shapeyour business Pretty obvious that we received 250 vs 400 expected… 😖 Whathappenedhere? OEE–BasicConcepts 8 hrs x 50 units/hr = 400 units per shift 8:00am 4:00pm Actually ran at 7 hrs x 40 units/hr = 280 units per shift 1 hr set up Of the expected 280 units the warehouse received 250
- 18. shapeyour business shapeyour business Pretty obvious that we received 250 vs 400 expected… 😖 We can break it down differently: Whathappenedhere? OEE–BasicConcepts 7/8 hrs = 87.5% UOM = Time Lost 1 hour 280/350 units = 80% Missed 70 units UOM = Units 250/280 units = 89.2% Wasted 30 units UOM = Units Notice the cascade effect that causes a ripple effect on the ability of the line to perform as promised. = 87.5 % x 80% x 89.2 = 62.5% Full potential = 8 hrs x 50 units/hr = 400 units UOM = Units
- 19. shapeyour business shapeyour business Pretty obvious that we received 250 vs 400 expected… 😖 We can break it down differently: Whathappenedhere? OEE–BasicConcepts 7/8 hrs = 87.5% UOM = Time Lost 1 hour 280/350 units = 80% Missed 70 units UOM = Units 250/280 units = 89.2% Wasted 30 units UOM = Units Notice the cascade effect that causes a ripple effect on the ability of the line to perform as promised. = 87.5 % x 80% x 89.2 = 62.5% Or: = 250 actual units / 400 promised = 62.5% Full potential = 8 hrs x 50 units/hr = 400 units UOM = Units
- 20. shapeyour business shapeyour business If this line costs $1,000/day to run, each units cost the company $4.00 ($1k/250 u) instead of the potential $2.85 – an increase of 40%! Whatistheeffect? OEE–BasicConcepts 7/8 hrs = 87.5% UOM = Time Lost 1 hour 280/350 u nits = 80% Missed 70 units UOM = Units 250/280 u nits = 71.4% Wasted 30 units UOM = Units = OEE 62.5% Full potential = 8 hrs x 50 units/hr = 400 units UOM = Units
- 21. shapeyour business shapeyour business We can think of the breakdown as a way to separate the reasons behind deviation from standard: Takingonestepback… OEE–BasicConcepts Use of available Time Compliance to line Speed/Rate performance Production of quality units
- 22. shapeyour business shapeyour business Focusonrelevantcontrols foreachelement OEE–BasicConcepts Use of available Time Compliance to line Speed/Rate performance Production of quality units Breakdowns Changeovers Micro-stoppages Prev. Maintenance Feeding Line balancing Certain types of waste Micro-stoppages Optimal running conditions Training and prev. speed adjustments SPC Failure mode analysis Certain yield functions FSMA/GFSI controls X X
- 24. shapeyour business shapeyour business Manufacturers that focus on OEE solely as a throughput metric miss an opportunity to transform corporate culture – OEE as the foundation of Continuous Improvement programs The key to taking that additional step – comprehensive root-cause analysis OEEisJusttheBeginning SuccessfulOEEprogram
- 25. shapeyour business shapeyour business CompleteOEEFramework SuccessfulOEEprogram OEE accurately measures throughput Comprehensive set of OEE input parameters I4.0-supported data Single source (ERP?) standard parameters Trained operators Daily routines based on OEE input/output Continuous improvement program Real-time OEE analytics Cost analysis supported by OEE metrics
- 26. shapeyour business shapeyour business 7TopCIInitiativesThat SupportOEEElements SuccessfulOEEprogram OEE element Common issues Initiatives Availability Breakdowns Changeovers Micro-stoppages Prev. Maintenance Feeding 1. Availability improvement circles 2. Redesigned PreOp inspections 3. Directed prev. maintenance Performance Line balancing Certain types of waste Micro-stoppages Optimal running conditions Training and prev. speed adjustments 4. Training and daily routines 5. Real-time visibility Quality SPC Failure mode analysis Certain yield functions FSMA/GFSI controls 6. Tighter controls on special cases 7. OEE-driven cost controls
- 27. shapeyour business shapeyour business Goal: continuous analysis of OEE downtime data, implementing quick-hits based on larger share of downtime or added cost Process: 1. Gather data, organize top-down, focus on root-cause 2. Multidisciplinary committee that meets weekly basis. Production, maintenance, leads and operators. 3. Explore dynamic factors: materials, scheduling, order processing, quality inspections and holds. 1.Availabilityimprovement committee SuccessfulOEEprogram
- 28. shapeyour business shapeyour business 2.PreOpinspections–settingup forperformance SuccessfulOEEprogram Goal: reinforce PreOp inspections to include productivity drivers Process: 1. Prioritize outcome of improvement committee 2. Think outside the box into those dynamic factors: material availability, machine speed settings, line operator instructions, quality controls ready to go, end-of-line packaging is set. 3. Think beyond the sheet of paper: automated PreOp inspections with interlocks into the machine
- 29. shapeyour business shapeyour business 4.Trainingand dailyroutines SuccessfulOEEprogram Goal: provide a structured day for leads/supervisors responsible for line productivity (PreOp for the shift) Process: 1. Train leaders into identifying factors that impede productivity 2. Build accumulated knowledge into a checklist (or an hourly set of tasks) 3. Train and train again – productivity, leadership skills, OEE math, costing, etc.
- 30. shapeyour business shapeyour business 5.Real-timevisibilityof productivityforoperators SuccessfulOEEprogram Goal: leverage technology to provide automatic real-time productivity signals to line operators Process: 1. Identify the top factors that line operators can control to drive line productivity (inspired by committee results) 2. Direct process engineers to provide signal screens at the line to encourage real-time changes in behavior 3. Factors include: pieces/min, delays time, expected end time, and 15-min interval display with rating of performance.
- 32. shapeyour business shapeyour business Different product categories require tweaking the performance goals and formulas, including cases where: - Process parameters drive yield (cheese) - Process rates are very slow or produce one unit (mixed batches) - Process of interest includes a continuous flow of liquids 6.Specialcases–fluids,one- unitflow,criticalyield SuccessfulOEEprogram
- 33. shapeyour business shapeyour business In principle, OEE requires consistent units of measure to complete the analysis of performance and quality elements 6.Specialcases–fluids,one- unitflow,criticalyield SuccessfulOEEprogram 7/8 hrs = 87.5% Availability UOM = Time Lost 1 hour 280/350 u nits = 80% Missed 70 units Performance UOM = Units 250/280 u nits = 71.4% Wasted 30 units Quality UOM = Units = OEE 62.5% Full potential = 8 hrs x 50 units/hr = 400 units UOM = Units
- 34. shapeyour business shapeyour business In a cheese plant, gallons of milk and cream turn into pounds of curds and gallons of whey, that are then packaged into blocks of a certain weight. We solve this issue by switching to a mass-balance calculation and incorporate it into a throughput analysis. 6.1Specialcases–fluids,one- unitflow,criticalyield SuccessfulOEEprogram Cheese Vat (gals) Cheese blocks (units) Gals @ X density = P lbs of Fat Q lbs of SNF R lbs of Protein Units @ X weight and composition = P lbs of Fat Q lbs of SNF R lbs of Protein
- 35. shapeyour business shapeyour business Since cycle times at standard can only grow longer, downtimes are added to calculate availability, to complete the formula: 6.Specialcases–fluids,one- unitflow,criticalyield SuccessfulOEEprogram 7/8 hrs = 87.5 % Availability UOM = Time Added down time Standard content of components in formula Variance to formula Performance UOM = #s of each component used Final balance of # of each component #s lost in the process Quality UOM = #s of each component used OEE = AvailabilityX +/- Performance X Quality/ YieldFull potential = units @ weight UOM = #s of each component
- 36. shapeyour business shapeyour business In a continuous flow fluid packaging operation (e.g. Brewery, soda, etc.) where the properties of the batch are well-known (density, brix, etc.), the variance comes from fill level. 6.2Specialcases–fluids,one- unitflow,criticalyield SuccessfulOEEprogram Beer (gals) Bottles of varying fill levels Gals @ known density = Potential bottles +/- assumed waste Units @ standard fill = Resulting net bottles +/- losses Important! Flowmeter
- 37. shapeyour business shapeyour business Downtimes are considered normally, but quality is derived from the output vs. the flowmeter. 6.2Specialcases–fluids,one- unitflow,criticalyield SuccessfulOEEprogram 7/8 hrs = 87.5 % Availability UOM = Time Actual down time Actual fill cycles for the time available Variance to fill cycle counts Performance UOM = units/hr Final balance of packaged units Fill variance (can also be positive) Quality UOM = units OEE = AvailabilityX Performance X Fill factor / quality Full potential = units @ standard / hr UOM = units Mixed gals / bottle fill size
- 39. shapeyour business shapeyour business Inter-connected production devices (sensors -> PLCs -> database) Easy access to detailed information (database -> analytics) Support operators with real-time analytics (analytics -> insights -> HMI) Systems make decisions autonomously (conclusions/info-> PLCs) KeyPrinciples Industry4.0
- 40. shapeyour business shapeyour business I4.0 augments the ability of the enterprise to impact OEE outcomes WhyisI4.0RelevantforOEE? Industry4.0 Use of available Time Compliance to line Speed/Rate performance Production of quality units Breakdowns Changeovers Micro-stoppages Prev. Maintenance Feeding Line balancing Certain types of waste Micro-stoppages Optimal running conditions Training and prev. speed adjustments SPC Failure mode analysis Certain yield functions FSMA/GFSI controls X X Track downtime Rich timetable Real-time OEE feedback Automated condition checks Speed setting driven by ERP recipe Preventative automated inspections Real-time SPC Real-time FS controls Lab-driven machine conditions
- 41. shapeyour business shapeyour business CompleteOEEFramework SuccessfulOEEprogram OEE accurately measures throughput Comprehensive set of OEE input parameters I4.0-supported data Single source (ERP?) standard parameters Trained operators Daily routines based on OEE input/output Continuous improvement program Real-time OEE analytics Cost analysis supported by OEE metrics
- 42. shapeyour business shapeyour business OEEasa Competitive Advantage Define OEE goals Identify source of data for downtime and speed Thoroughly research best-demonstrated standards Slow rollout of OEE – line by line Rollout of CI program once data accumulates Increased efficiency and company value à Setup data flow and automation plan Strict work to establish optimal process speed Implement best-practices in each line until perfection is achieved Plant-wide CI program including change management and other disciplines Focused on price/unit to match market needs Current State Rollout of cost analysis and target savings Future State Strict work on recipes, standard batches, variance, etc. ERP Implementation à
- 45. Q & A
- 46. Resources White Papers & Surveys Webinars & Videos Product & Partner Info Solution Consultation info@safetychain.com SafetyChain.com