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Lean Six Sigma Operational - Delegate Workbook

Overall Equipment Effectiveness

Manufacturing Losses
Industry has traditionally used Labour Efficiency to set targets for Numbers produced per day and measure performance.

Target =

Crew size Shift time Std Time per item

Efficiency =

No. Produced Target

This is appropriate for manual processes. Except that it induces all kinds of bad behaviours.
SSG06101ENUK Delegate Slides/Issue 1.1/ April 2008

SSG06101ENUK - OEE/Issue 1.1 / April 2008

The British Standards Institution 2008

Lean Six Sigma Operational - Delegate Workbook

Manufacturing Losses
For machine based processes this efficiency measure is inappropriate:
Emphasis is focused on Labour The target becomes a quota; either easy, too hard or occasionally just right Machines breakdown or run at a particular speed regardless of how many people are in attendance or how hard they work Machine downtime is lost once labour is redeployed

SSG06101ENUK Delegate Slides/Issue 1.1/ April 2008

Overall Equipment Effectiveness (OEE)


A Better Metric

SSG06101ENUK - OEE/Issue 1.1 / April 2008

The British Standards Institution 2008

Lean Six Sigma Operational - Delegate Workbook

Overall Equipment Effectiveness (OEE)


Developed By The Japanese Institute of Plant Maintenance (JIPM) in 1971,to overcome Manufacturing Chaos such as:
Plant Availability Plant Performance (which includes peoples performance if relevant) Quality Levels

SSG06101ENUK Delegate Slides/Issue 1.1/ April 2008

Whats OEE for:


Performance measurement Identifying and understanding losses To make us think about how to reduce losses
and ultimately eliminate losses

Who? Production Engineering QA, Engineering, etc

SSG06101ENUK Delegate Slides/Issue 1.1/ April 2008

SSG06101ENUK - OEE/Issue 1.1 / April 2008

The British Standards Institution 2008

Lean Six Sigma Operational - Delegate Workbook

SSG06101ENUK Delegate Slides/Issue 1.1/ April 2008

Who uses OEE?


All the Big Players such as Ford use OEE as a performance indicator, and it is generally accepted that:
An OEE of 85% is a World Class Performance

Companies working out their OEEs for the first time are taken aback by 20-30% performance

SSG06101ENUK Delegate Slides/Issue 1.1/ April 2008

SSG06101ENUK - OEE/Issue 1.1 / April 2008

The British Standards Institution 2008

Lean Six Sigma Operational - Delegate Workbook

How does OEE drive improvement?


Local Metric its for the shop floor and production supervision to measure performance and look for improvement opportunities
Keep Graph Overall and 3 contributors at Gemba support with Cause and Effect Diagrams & Action lists. Part of a Visual Management System Does the workforce get the most from the plant? Is a fair question

Production Engineering often own the plant. Whats the bottle neck process? Can it be speeded up? Why does the plant produce defects? Why do minor stoppages occur? Often a big contributor - count them

SSG06101ENUK Delegate Slides/Issue 1.1/ April 2008

10

How does OEE drive improvement?


Maintenance Spares holding and positioning. Fitter availability. Preventative maintenance. Change over time reduction (not frequency reduction) SMED for change over:
External Activities get ready: materials, tools, parts, information Internal Speed up quick release couplings etc Write SOPs so people know what they are doing

SSG06101ENUK Delegate Slides/Issue 1.1/ April 2008

SSG06101ENUK - OEE/Issue 1.1 / April 2008

The British Standards Institution 2008

Lean Six Sigma Operational - Delegate Workbook

11

But
Dont forget schedule attainment high OEE making something a customer doesnt want is waste OEE plant wide is an average nonsense. Target critical machines Bottle necks then Pareto Dont make OEE an end in itself, be sensible with cost of improvements ie large cost vs small gain would be counterproductive waste

SSG06101ENUK Delegate Slides/Issue 1.1/ April 2008

12

What target? Best of best


Record OEE data over a period of several weeks (or days):
Week No 1 2 3 4 5 6 7 Availability 0.80 0.90 0.85 0.70 0.75 0.95 0.92 Performance 0.80 0.85 0.87 0.92 0.89 0.92 0.85 Quality 0.99 0.98 0.98 0.99 0.97 0.90 0.96 OEE 0.63 0.75 0.72 0.64 0.65 0.79 0.75

SSG06101ENUK Delegate Slides/Issue 1.1/ April 2008

SSG06101ENUK - OEE/Issue 1.1 / April 2008

The British Standards Institution 2008

Lean Six Sigma Operational - Delegate Workbook

13

What target? Best of best


Note the Best recording for Availability:
Week No 1 2 3 4 5 6 7 Availability 0.80 0.90 0.85 0.70 0.75 0.95 0.92 Performance 0.80 0.85 0.87 0.92 0.89 0.92 0.85 Quality 0.99 0.98 0.98 0.99 0.97 0.90 0.96 OEE 0.63 0.75 0.72 0.64 0.65 0.79 0.75

SSG06101ENUK Delegate Slides/Issue 1.1/ April 2008

14

What target? Best of best


Note the Best recording for Performance:
Week No 1 2 3 4 5 6 7 Availability 0.80 0.90 0.85 0.70 0.75 0.95 0.92 Performance 0.80 0.85 0.87 0.92 0.89 0.92 0.85 Quality 0.99 0.98 0.98 0.99 0.97 0.90 0.96 OEE 0.63 0.75 0.72 0.64 0.65 0.79 0.75

SSG06101ENUK Delegate Slides/Issue 1.1/ April 2008

SSG06101ENUK - OEE/Issue 1.1 / April 2008

The British Standards Institution 2008

Lean Six Sigma Operational - Delegate Workbook

15

What target? Best of best


Note the Best recording for Quality:
Week No 1 2 3 4 5 6 7 Availability 0.80 0.90 0.85 0.70 0.75 0.95 0.92 Performance 0.80 0.85 0.87 0.92 0.89 0.92 0.85 Quality 0.99 0.98 0.98 0.99 0.97 0.90 0.96 OEE 0.63 0.75 0.72 0.64 0.65 0.79 0.75

SSG06101ENUK Delegate Slides/Issue 1.1/ April 2008

16

What target? Best of best


Apply the Best of the Best:
Week No 1 2 3 4 5 6 7 Availability 0.80 0.90 0.85 0.70 0.75 0.95 0.92 Performance 0.80 0.85 0.87 0.92 0.89 0.92 0.85 Quality 0.99 0.98 0.98 0.99 0.97 0.90 0.96 OEE 0.63 0.75 0.72 0.64 0.65 0.79 0.75

0.95

0.92

0.99

0.87

SSG06101ENUK Delegate Slides/Issue 1.1/ April 2008

SSG06101ENUK - OEE/Issue 1.1 / April 2008

The British Standards Institution 2008

Lean Six Sigma Operational - Delegate Workbook

17

What target? Best of best


The Best of the Best indicate what is possible & the question asked is:
Why this OEE performance is not achieved all the time? The Best of Best can be a short term target but if OEE is low well need to get beyond this Often - in the short term there is no target. OEE is a diagnostic Tool - well see what we get - understand root causes and set targets for improvement
SSG06101ENUK Delegate Slides/Issue 1.1/ April 2008

18

An example
OEE at .

Consider the 3 components of OEE.

SSG06101ENUK Delegate Slides/Issue 1.1/ April 2008

SSG06101ENUK - OEE/Issue 1.1 / April 2008

The British Standards Institution 2008

Lean Six Sigma Operational - Delegate Workbook

19

Availability

% Plant Availability = Planned Runtime - Downtime x 100 Planned Runtime

SSG06101ENUK Delegate Slides/Issue 1.1/ April 2008

20

Planned Run Time


Shift duration days 07:15 - 17:00 = 9 hrs 45 mins shifts 06:00 - 14:00; 14:00 - 22:00 = 8 hrs add in Overtime Breaks Tea Break 15 mins Lunch Break 30 mins Down Time Change Overs Stoppages - more than 10mins
SSG06101ENUK Delegate Slides/Issue 1.1/ April 2008

We know that team meetings, walking to breaks, washing, etc will eat into OEE. Remember that 85% is a world class auto factory where lockers, canteen ,etc are lineside.

45 mins If on shifts planned run time is 7hrs 15mins. 435minutes

SSG06101ENUK - OEE/Issue 1.1 / April 2008

10

The British Standards Institution 2008

Lean Six Sigma Operational - Delegate Workbook

21

Down Time
The plant suffered: 3 minor breakdowns less than 10 minutes these are neglected ~(counted as performance) A major breakdown of 1 hour

SSG06101ENUK Delegate Slides/Issue 1.1/ April 2008

22

Availability
Running Time DownTime 100% RunningTim e 435 60 Availability = 100 = 86.3% 435 Availability =

SSG06101ENUK Delegate Slides/Issue 1.1/ April 2008

SSG06101ENUK - OEE/Issue 1.1 / April 2008

11

The British Standards Institution 2008

Lean Six Sigma Operational - Delegate Workbook

23

Machine Run Rate


Determine the Machine Run Rate.. Time the number of items produced by the machine in a minute... The plant has been timed at producing 8 off items per minute, therefore
Machine Run Rate = 1 minute / 8 Machine Run Rate = 0.125 minutes

Remember: Full Speed no allowances

SSG06101ENUK Delegate Slides/Issue 1.1/ April 2008

24

Performance
Suppose in the day we produced 1200 items % Performance = Machine Run rate x Processed Amount x 100 Operating Time

ie

.125 mins / Unit x 1200 Units x 100 435-60 mins

% Performance = 56.25%

SSG06101ENUK Delegate Slides/Issue 1.1/ April 2008

SSG06101ENUK - OEE/Issue 1.1 / April 2008

12

The British Standards Institution 2008

Lean Six Sigma Operational - Delegate Workbook

25

Quality - Right First Time


% of Right First Time Products

Processed Amount - Defective Amount x 100 Processed Amount.

Suppose 40 items (of the 800) failed inspection and were scrapped:
% of Right First Time Products = 800 - 40 x 100 = 95% 800

SSG06101ENUK Delegate Slides/Issue 1.1/ April 2008

26

Overall OEE
OEE = Availability Performance Quality 100% OEE = .863 .5625 .95 = 46.12%
Why did the breakdown occur? Why did it take an hour to fix?
Did the fitter turn up quickly? Did he have the part needed for repair to hand?

Did the crew take a break when the machine was down (rather than at the appointed time when it was back up again)? What can be done to reduce a 5% scrap rate?

SSG06101ENUK Delegate Slides/Issue 1.1/ April 2008

SSG06101ENUK - OEE/Issue 1.1 / April 2008

13

The British Standards Institution 2008

Lean Six Sigma Operational - Delegate Workbook

27

Golden Rules
OEE is about Machines NOT people OEE cannot exceed 100% 85% is World Class - Car Factory USE OEE to identify & correct Manufacturing Weaknesses Ask What if

SSG06101ENUK Delegate Slides/Issue 1.1/ April 2008

28

A Data Collection Form


PLEASE PRINT ALL ENTRIES CLEARLY - THANK YOU.

DAILY or SHIFT DATA CAPTURE FORM AND OEE CALCULATION


Machine:
* Breaks (45 mins), PM, CI,

Date / Shift A: Shift Start Time

Store/Product B: Shift End Time

Operation:
D=B-A-C

Cell:
Minutes/Piece

C: Agree Down Time* Downtime Type of Loss End Time (code)

D: Running Time (Mins)

E:Machine Rate:

Event No.

Spare Start Time

Duration

Comments/details of Breakdown Losses (including parts used) for codes E11, E12 & E 13.

F: Total Duration of Lost Time (mins)


D- F J divided by D x100

G: Good Rounds Packed in Shift:


E x (G+H) divided by J x 100 G divided by (G+H)

H: Rounds Scrapped

J: Operating Time:

Availability : OEE :

Performance:

Right First Time

Availability x Perf ormance x Right First Time (As Decimals)

A. 'Material & Tool Losses B. Labour Losses


Supplier Quality A11 Parts unusable A12 Tooling unusable Delivery A21 Waiting for material A22 Waiting for tooling

LOSS CODES C. 'Planned Losses

E. 'Machine Losses
Breakdow n losses Idling & Minor Stoppages E11 Sudden mechanical failure * E41 Breakdow n of previous machine E12 Sudden electrical f ailure * E42 Breakdow n of subsequent machine E13 PLC or softw are system failure * E43 Component jamming / remove & reset E14 Misc (please specify) Start up Losses E61 Machine not stable on start-up Set-up adjustment losses E21 Setting / Adjustments

Headcount CI Activities B11 No Labour AvailableC11 Continuous Improvement C12 Meeting

Planned not to run C41 5C / 5S Activities C42 Process / Tool Change Over C43 Clean dow n machine C44 Change process lubricant D. ' Method Losses Planned Maintenance Activities C21 Scheduled PPM activities Duplication D11 Operation repeated Development C51 Training

SSG06101ENUK Delegate Slides/Issue 1.1/ April 2008

SSG06101ENUK - OEE/Issue 1.1 / April 2008

14

The British Standards Institution 2008

Lean Six Sigma Operational - Delegate Workbook

29

So lets work another one through


Your shift runs 06:00 to 14:00 You have 1 x15 minute break and 1 x 30 minute break during the shift During the shift you had two plant failures of 30 minutes and 45 minutes respectively which stopped production. A Spare had to be fetched for the second repair You produced 2000 items The machine speed is 10 items per minute 10 of these were reject, and had to be scrapped (rework would count too not right first time) Please calculate the availability, performance, quality efficiency, and the overall OEE

SSG06101ENUK Delegate Slides/Issue 1.1/ April 2008

PLEASE PRINT ALL ENTRIES CLEARLY - THANK YOU.

DAILY or SHIFT DATA CAPTURE FORM AND OEE CALCULATION


Machine:
Our Machine * Breaks (45 mins), PM, CI,

30

Date / Shift
19/10/2004

Store/Product
Rarden case

Operation:
closing D=B-A-C

Cell:
Main manf plant area 5 Minutes/Piece

A: Shift Start Time


06:00

B: Shift End Time


14:00

C: Agree Down Time*


45mins

D: Running Time (Mins)


7hrs 15 mins = 435 mins

E:Machine Rate:
0.1 minute/item

Event No.
1 2

Spare Start Time


09:15 11:00

Downtime Type of Loss End Time (code)


09:45 11:45 E11 E11

Duration
30 mins 45 mins

Comments/details of Breakdown Losses (including parts used) for codes E11, E12 & E 13.
jammed cap feeder jammed cap feeder spare fetched from Fitter's store

F: Total Duration of Lost Time (mins)


D- F

75 mins J divided by D x100

G: Good Rounds Packed in Shift:


E x (G+H) divided by J x 100

2000 G divided by (G+H)

H: Rounds Scrapped

10

J: Operating Time:

360 mins

Availability :

82.70%

Performance: 45.90%

55.8%

Right First Time 99.5%

Availability x Performance x Right First Time (As Decimals)

OEE : A. 'Material & Tool Losses B. Labour Losses


Supplier Quality A11 Parts unusable A12 Tooling unusable Delivery A21 Waiting f or material A22 Waiting f or tooling

LOSS CODES C. 'Planned Losses

E. 'Machine Losses
Breakdow n losses E11 Sudden mechanical failure * E12 Sudden electrical failure * E13 PLC or softw are system failure * E14 Misc (please specify) Set-up adjustm ent losses E21 Setting / Adjustments Idling & Minor Stoppages E41 Breakdow n of previous machine E42 Breakdow n of subsequent machine E43 Component jamming / remove & reset Start up Losses E61 Machine not stable on start-up

Headcount CI Activities B11 No Labour AvailableC11 Continuous Improvement C12 Meeting

Planned not to run C41 5C / 5S Activities C42 Process / Tool Change Over C43 Clean dow n machine C44 Change process lubricant D. ' Method Losses Planned Maintenance Activities Duplication C21 Scheduled PPM activities D11 Operation repeated Developm ent C51 Training

SSG06101ENUK Delegate Slides/Issue 1.1/ April 2008

SSG06101ENUK - OEE/Issue 1.1 / April 2008

15

The British Standards Institution 2008

Lean Six Sigma Operational - Delegate Workbook

PLEASE PRINT ALL ENTRIES CLEARLY - THANK YOU.

DAILY or SHIFT DATA CAPTURE FORM AND OEE CALCULATION


Machine:
ADL Capper * Breaks (45 mins), PM, CI,

31
Grp 4

Date / Shift
19/10/2004

Store/Product
Rarden case

Operation:
Capping D=B-A-C

Cell:
Minutes/Piece

A: Shift Start Time


06:00

B: Shift End Time


14:00

C: Agree Down Time*


45mins

D: Running Time (Mins)


7hrs 15 mins = 435 mins

E:Machine Rate:
0.1 minute/case

Event No.
1 2

Spare Start Time


09:15 11:00

Downtime Type of Loss (code) End Time


09:45 11:45 E11 E11

Duration
30 mins 45 mins

Comments/details of Breakdown Losses (including parts used) for codes E11, E12 & E 13.
jammed feeder jammed feeder spare fetched from Fitter's store

435 - 75 = 360mins

F: Total Duration of Lost Time (mins)


D- F

75 mins J divided by D x100

G: Good Rounds Packed in Shift:


E x (G+H) divided by J x 100

2000 G divided by (G+H)

H: Rounds Scrapped

10

J: Operating Time:

360 mins

Availability :

82.70%

Performance: 45.90%

55.8%

Right First Time 99.5%

Availability x Performance x Right First Time (As Decimals)

OEE : A. 'Material & Tool Losses B. Labour Losses


Supplier Quality A11 Parts unusable A12 Tooling unusable Delivery A21 Waiting f or material A22 Waiting f or tooling

LOSS CODES C. 'Planned Losses

E. 'Machine Losses
Breakdow n losses E11 Sudden mechanical failure * E12 Sudden electrical failure * E13 PLC or softw are system failure * E14 Misc (please specify) Set-up adjustm ent losses E21 Setting / Adjustments Idling & Minor Stoppages E41 Breakdow n of previous machine E42 Breakdow n of subsequent machine E43 Component jamming / remove & reset Start up Losses E61 Machine not stable on start-up

Headcount CI Activities B11 No Labour AvailableC11 Continuous Improvement C12 Meeting

Planned not to run C41 5C / 5S Activities C42 Process / Tool Change Over C43 Clean dow n machine C44 Change process lubricant D. ' Method Losses Planned Maintenance Activities Duplication C21 Scheduled PPM activities D11 Operation repeated Developm ent C51 Training

SSG06101ENUK Delegate Slides/Issue 1.1/ April 2008

PLEASE PRINT ALL ENTRIES CLEARLY - THANK YOU.

DAILY or SHIFT DATA CAPTURE FORM AND OEE CALCULATION


Machine:
ADL Capper * Breaks (45 mins), PM, CI,

32
Grp 4

Date / Shift
19/10/04

Store/Product
Rarden case

Operation:
Capping D=B-A-C

Cell:
Minutes/Piece

A: Shift Start Time


06:00

B: Shift End Time


14:00

C: Agree Down Time*


45mins

D: Running Time (Mins)


7hrs 15 mins = 435 mins

E:Machine Rate:
0.1 minute/case

Event No.
1 2

Spare Start Time


09:15 11:00 09:45 11:45

End Time

Downtime Type of Loss (code)


E11 E11

Duration
30 mins 45 mins

Comments/details of Breakdown Losses (including parts used) for codes E11, E12 & E 13.
jammed cap feeder jammed cap feeder spare fetched from Fitter's store

360/435x100 = 82.7%
F: Total Duration of Lost Time (mins)
D- F 75 mins J divided by D x100

G: Good Rounds Packed in Shift:


E x (G+H) divided by J x 100

2000 G divided by (G+H)

H: Rounds Scrapped

10

J: Operating Time:

360 mins

Availability :

82.70%

Performance: 45.90%

55.8%

Right First Time 99.5%

Availability x Performance x Right First Time (As Decimals)

OEE : A. 'Material & Tool Losses B. Labour Losses


Supplier Quality A11 Parts unusable A12 Tooling unusable Delivery A21 Waiting for material A22 Waiting for tooling

LOSS CODES C. 'Planned Losses

E. 'Machine Losses
Breakdow n losses E11 Sudden mechanical failure * E12 Sudden electrical failure * E13 PLC or softw are system failure * E14 Misc (please specify) Set-up adjustm ent losses E21 Setting / Adjustments Idling & Minor Stoppages E41 Breakdow n of previous machine E42 Breakdow n of subsequent machine E43 Component jamming / remove & reset Start up Losses E61 Machine not stable on start-up

Headcount CI Activities B11 No Labour AvailableC11 Continuous Improvement C12 Meeting

Planned not to run C41 5C / 5S Activities C42 Process / Tool Change Over C43 Clean dow n machine C D. ' Method Losses Planned Maintenance Activities44 Change process lubricant Duplication C21 Scheduled PPM activities D11 Operation repeated Development C51 Training

SSG06101ENUK Delegate Slides/Issue 1.1/ April 2008

SSG06101ENUK - OEE/Issue 1.1 / April 2008

16

The British Standards Institution 2008

Lean Six Sigma Operational - Delegate Workbook

PLEASE PRINT ALL ENTRIES CLEARLY - THANK YOU.

DAILY or SHIFT DATA CAPTURE FORM AND OEE CALCULATION


Machine:
ADL Capper * Breaks (45 mins), PM, CI,

33
Grp 4

Date / Shift
19/10/04

Store/Product
Rarden case

Operation:
Capping D=B-A-C

Cell:
Minutes/Piece

A: Shift Start Time


06:00

B: Shift End Time


14:00

C: Agree Down Time*


45mins

D: Running Time (Mins)


7hrs 15 mins = 435 mins

E:Machine Rate:
0.1 minute/case

Event No.
1 2

Spare Start Time


09:15 11:00

Downtime Type of Loss End Time (code)


09:45 11:45 E11 E11

Duration
30 mins 45 mins

Comments/details of Breakdown Losses (including parts used) for codes E11, E12 & E 13.
jammed cap feeder jammed cap feeder spare fetched from Fitter's store

0.1x(2000+10)/360 x100 = 55.8%

F: Total Duration of Lost Time (mins)


D- F

75 mins J divided by D x100

G: Good Rounds Packed in Shift:


E x (G+H) divided by J x 100

2000 G divided by (G+H)

H: Rounds Scrapped

10

J: Operating Time:

360 mins

Availability :

82.70%

Performance: 45.90%

55.8%

Right First Time 99.5%

Availability x Performance x Right First Time (As Decimals)

OEE : A. 'Material & Tool Losses B. Labour Losses


Supplier Quality A11 Parts unusable A12 Tooling unusable Delivery A21 Waiting for material A22 Waiting for tooling

LOSS CODES C. 'Planned Losses

E. 'Machine Losses
Breakdow n losses E11 Sudden mechanical f ailure * E12 Sudden electrical failure * E13 PLC or softw are system failure * E14 Misc (please specify) Set-up adjustm ent losses E21 Setting / Adjustments Idling & Minor Stoppages E41 Breakdow n of previous machine E42 Breakdow n of subsequent machine E43 Component jamming / remove & reset Start up Losses E61 Machine not stable on start-up

Headcount CI Activities B11 No Labour AvailableC11 Continuous Improvement C12 Meeting

Planned not to run C41 5C / 5S Activities C42 Process / Tool Change Over C43 Clean dow n machine C D. ' Method Losses Planned Maintenance Activities44 Change process lubricant Duplication C21 Scheduled PPM activities D11 Operation repeated Development C51 Training

SSG06101ENUK Delegate Slides/Issue 1.1/ April 2008

PLEASE PRINT ALL ENTRIES CLEARLY - THANK YOU.

DAILY or SHIFT DATA CAPTURE FORM AND OEE CALCULATION


Machine:
ADL Capper * Breaks (45 mins), PM, CI,

34
Grp 4

Date / Shift
19/10/04

Store/Product
Rarden case

Operation:
Capping D=B-A-C

Cell:
Minutes/Piece

A: Shift Start Time


06:00

B: Shift End Time


14:00

C: Agree Down Time*


45mins

D: Running Time (Mins)


7hrs 15 mins = 435 mins

E:Machine Rate:
0.1 minute/case

Event No.
1 2

Spare Start Time


09:15 11:00

Downtime Type of Loss End Time (code)


09:45 11:45 E11 E11

Duration
30 mins 45 mins

Comments/details of Breakdown Losses (including parts used) for codes E11, E12 & E 13.
jammed cap feeder jammed cap feeder spare fetched from Fitter's store

2000/(2000+10) x100

F: Total Duration of Lost Time (mins)


D- F

75 mins J divided by D x100

G: Good Rounds Packed in Shift:


E x (G+H) divided by J x 100

2000 G divided by (G+H)

H: Rounds Scrapped

10

J: Operating Time:

360 mins

Availability :

82.70%

Performance: 45.90%

55.8%

Right First Time 99.5%

Availability x Performance x Right First Time (As Decimals)

OEE : A. 'Material & Tool Losses B. Labour Losses


Supplier Quality A11 Parts unusable A12 Tooling unusable Delivery A21 Waiting for material A22 Waiting for tooling

LOSS CODES C. 'Planned Losses

E. 'Machine Losses
Breakdow n losses E11 Sudden mechanical f ailure * E12 Sudden electrical failure * E13 PLC or softw are system failure * E14 Misc (please specify) Set-up adjustm ent losses E21 Setting / Adjustments Idling & Minor Stoppages E41 Breakdow n of previous machine E42 Breakdow n of subsequent machine E43 Component jamming / remove & reset Start up Losses E61 Machine not stable on start-up

Headcount CI Activities B11 No Labour AvailableC11 Continuous Improvement C12 Meeting

Planned not to run C41 5C / 5S Activities C42 Process / Tool Change Over C43 Clean dow n machine C D. ' Method Losses Planned Maintenance Activities44 Change process lubricant Duplication C21 Scheduled PPM activities D11 Operation repeated Development C51 Training

SSG06101ENUK Delegate Slides/Issue 1.1/ April 2008

SSG06101ENUK - OEE/Issue 1.1 / April 2008

17

The British Standards Institution 2008

Lean Six Sigma Operational - Delegate Workbook

PLEASE PRINT ALL ENTRIES CLEARLY - THANK YOU.

DAILY or SHIFT DATA CAPTURE FORM AND OEE CALCULATION


Machine:
ADL Capper * Breaks (45 mins), PM, CI,

35
Grp 4

Date / Shift
19/10/04

Store/Product
Rarden case

Operation:
Capping D=B-A-C

Cell:
Minutes/Piece

A: Shift Start Time


06:00

B: Shift End Time


14:00

C: Agree Down Time*


45mins

D: Running Time (Mins)


7hrs 15 mins = 435 mins

E:Machine Rate:
0.1 minute/case

Event No.
1 2

Spare Start Time


09:15 11:00

Downtime Type of Loss End Time (code)


09:45 11:45 E11 E11

Duration
30 mins 45 mins

Comments/details of Breakdown Losses (including parts used) for codes E11, E12 & E 13.
jammed cap feeder jammed cap feeder spare fetched from Fitter's store

0.827x0.558x0.995x100 =45.9%

F: Total Duration of Lost Time (mins)


D- F

75 mins J divided by D x100

G: Good Rounds Packed in Shift:


E x (G+H) divided by J x 100

2000 G divided by (G+H)

H: Rounds Scrapped

10

J: Operating Time:

360 mins

Availability :

82.70%

Performance: 45.90%

55.8%

Right First Time 99.5%

Availability x Performance x Right First Time (As Decimals)

OEE : A. 'Material & Tool Losses B. Labour Losses


Supplier Quality A11 Parts unusable A12 Tooling unusable Delivery A21 Waiting for material A22 Waiting for tooling

LOSS CODES C. 'Planned Losses

E. 'Machine Losses
Breakdow n losses E11 Sudden mechanical f ailure * E12 Sudden electrical failure * E13 PLC or softw are system failure * E14 Misc (please specify) Set-up adjustm ent losses E21 Setting / Adjustments Idling & Minor Stoppages E41 Breakdow n of previous machine E42 Breakdow n of subsequent machine E43 Component jamming / remove & reset Start up Losses E61 Machine not stable on start-up

Headcount CI Activities B11 No Labour AvailableC11 Continuous Improvement C12 Meeting

Planned not to run C41 5C / 5S Activities C42 Process / Tool Change Over C43 Clean dow n machine C D. ' Method Losses Planned Maintenance Activities44 Change process lubricant Duplication C21 Scheduled PPM activities D11 Operation repeated Development C51 Training

SSG06101ENUK Delegate Slides/Issue 1.1/ April 2008

36

A picture is worth a thousand words


Our Plant OEE
100 80 OEE 60 40 20 0 0 10 Day 20 30

Plot The Result on the board supplied

OEE Availability Performance Quality

SSG06101ENUK Delegate Slides/Issue 1.1/ April 2008

SSG06101ENUK - OEE/Issue 1.1 / April 2008

18

The British Standards Institution 2008

Lean Six Sigma Operational - Delegate Workbook

37

Maintain a log sheet to show Whole day break detail


Store/Product:
Day
1 2 3 4 5 6 7 8 9 10 11

downs: Availability: 0 OEE= 0% Overall Equipment Effeciveness (OEE) Log Sheet (Provided we would have used plant Machine: Month: if it had been up.)
Performance % Right First Time % OEE %

Availability %

SSG06101ENUK Delegate Slides/Issue 1.1/ April 2008

38

Maintain a log sheet to show detail


Overall Equipment Effeciveness (OEE) Log Sheet Store/Product:
Day
1 2 3 4 5 6 7 8 9 10 11

Machine:
Performance % Right First Time %

Month:

Availability %

OEE % When we didnt use it and we didnt want to. I.e. Weekends with no O/T planned

To Office at Month End Please to include Average in KPIs


SSG06101ENUK Delegate Slides/Issue 1.1/ April 2008

SSG06101ENUK - OEE/Issue 1.1 / April 2008

19

The British Standards Institution 2008

Lean Six Sigma Operational - Delegate Workbook

39

Golden Rule
Cells will be encouraged to ask What if. What if we did not have to wait for an Fitter? What if we did not have to wait for a spare part? What if we had a breakdown mid morning break and took our break then rather than waiting for the right time? What if the plant is running and we took a break by splitting the shift? What if we developed a Capital Case to replace the plant?

SSG06101ENUK Delegate Slides/Issue 1.1/ April 2008

40

Lets try to answer some of these questions


Lets remove the some of the Unplanned Downtime (waiting for Fitter 15 mins & waiting for spare to be fetched 15 mins, total = 30 mins) Downtime is reduced to from 75 to 45 mins And if we assume an extra 120 items could be produced increasing our output from 2000 to 2120..

SSG06101ENUK Delegate Slides/Issue 1.1/ April 2008

SSG06101ENUK - OEE/Issue 1.1 / April 2008

20

The British Standards Institution 2008

Lean Six Sigma Operational - Delegate Workbook

41

PLEASE PRINT ALL ENTRIES CLEARLY - THANK YOU.

DAILY or SHIFT DATA CAPTURE FORM AND OEE CALCULATION


Machine:
our plant * Breaks (45 mins), PM, CI,

Date / Shift
19/10/2004

Store/Product
Rarden case

Operation:
Capping D=B-A-C

Cell:
Grp 4 Minutes/Piece

A: Shift Start Time


06:00

B: Shift End Time


14:00

C: Agree Down Time*


45mins

D: Running Time (Mins)


7hrs 15 mins = 435 mins

E:Machine Rate:
0.1 minute/case

Event No.
1 2

Spare Start Time


09:15 11:00 09:30 11:30

End Time

Downtime Type of Loss (code)


E11 E11

Duration
15 mins 30 mins

Comments/details of Breakdown Losses (including parts used) for codes E11, E12 & E 13.
jammed f eeder jammed f eeder spare fetched from Fitter's store

390/435x100 = 89.7%
F: Total Duration of Lost Time (mins)
D- F 45 mins J divided by D x100

G: Good Rounds Packed in Shift:


E x (G+H) divided by J x 100

2120 G divided by (G+H)

H: Rounds Scrapped

10

J: Operating Time:

390 mins

Availability : OEE :

89.70%

Performance: 48.70%

54.6%

Right First Time 99.5%

Availability x Performance x Right First Time (As Decimals)

A. 'Material & Tool Losses B. Labour Losses


Supplier Quality A11 Parts unusable A12 Tooling unusable Delivery A21 Waiting for material A22 Waiting for tooling

LOSS CODES C. 'Planned Losses

E. 'Machine Losses
Breakdow n losse s E11 Sudden mechanical failure * E12 Sudden electrical failure * E13 PLC or sof tw are system failure * E14 Misc (please specify) Set-up adjustm ent los ses E21 Setting / Adjustments Idling & Minor Stoppages E41 Breakdow n of previous machine E42 Breakdow n of subsequent machine E43 Component jamming / remove & reset Start up Los ses E61 Machine not stable on start-up

He adcount CI Activities B11 No Labour AvailableC11 Continuous Improvement C12 Meeting

Planne d not to run C41 5C / 5S Activities C42 Process / Tool Change Over C43 Clean dow n machine C D. ' Method Losses Planned Maintenance Activities44 Change process lubricant C21 Scheduled PPM activities Duplication D11 Operation repeated Development C51 Training

SSG06101ENUK Delegate Slides/Issue 1.1/ April 2008

42

PLEASE PRINT ALL ENTRIES CLEARLY - THANK YOU.

DAILY or SHIFT DATA CAPTURE FORM AND OEE CALCULATION


Machine:
our plant * Breaks (45 mins), PM, CI,

Date / Shift
Main 19/10/2004

Store/Product
Rarden case

Operation:
Capping D=B-A-C

Cell:
plant Minutes/Piece

A: Shift Start Time


06:00

B: Shift End Time


14:00

C: Agree Down Time*


45mins

D: Running Time (Mins)


7hrs 15 mins = 435 mins

E:Machine Rate:
0.1 minute/item

Event No.
1 2

Spare Start Time


09:15 11:00 09:30 11:30

End Time

Downtime Type of Loss (code)


E11 E11

Duration
15 mins 30 mins

Comments/details of Breakdown Losses (including parts used) for codes E11, E12 & E 13.
jammed feeder jammed feeder spare f etched from Fitter's store

0.827x0.558x0.995x100 =48.7%
F: Total Duration of Lost Time (mins)
D- F 45 mins J divided by D x100

G: Good Rounds Packed in Shift:


E x (G+H) divided by J x 100

2120 G divided by (G+H)

H: Rounds Scrapped

10

J: Operating Time:

390 mins

Availability : OEE :

89.70%

Performance: 48.70%

54.6%

Right First Time 99.5%

Availability x Performance x Right First Time (As Decimals)

A. 'Material & Tool Losses B. Labour Losses


Supplier Quality A11 Parts unusable A12 Tooling unusable De livery A21 Waiting for material A22 Waiting for tooling

LOSS CODES C. 'Planned Losses

E. 'Machine Losses
Break dow n los se s E11 Sudden mechanical failure * E12 Sudden electrical failure * E13 PLC or softw are system failure * E14 Misc (please specif y) Set-up adjustm e nt losse s E21 Setting / Adjustments Idling & Minor Stoppages E41 Breakdow n of previous machine E42 Breakdow n of subsequent machine E43 Component jamming / remove & reset Start up Loss es E61 Machine not stable on start-up

He adcount CI Activitie s B11 No Labour AvailableC11 Continuous Improvement C12 Meeting

Planne d not to run C41 5C / 5S Activities C42 Process / Tool Change Over C43 Clean dow n machine s D. ' Method Losses Planne d Mainte nance ActivitieC44 Change process lubricant Duplication C21 Scheduled PPM activities Developm ent D11 Operation repeated C51 Training

SSG06101ENUK Delegate Slides/Issue 1.1/ April 2008

SSG06101ENUK - OEE/Issue 1.1 / April 2008

21

The British Standards Institution 2008

Lean Six Sigma Operational - Delegate Workbook

43

Outcome
We can see an improvement of 7% on Machine Availability and an increase of 2.8% on OEE These are small theoretical increases, but they cannot be discounted. Many small gains all add up

SSG06101ENUK Delegate Slides/Issue 1.1/ April 2008

44

More what ifs


The obvious questions arise. Why cant we have more fitters? Why not keep a spare part on the job? Can we take breaks nearer the job? Can we have a extra hand at break times to make splitting easier?

SSG06101ENUK Delegate Slides/Issue 1.1/ April 2008

SSG06101ENUK - OEE/Issue 1.1 / April 2008

22

The British Standards Institution 2008

Lean Six Sigma Operational - Delegate Workbook

45

What about a new Machine?

SSG06101ENUK Delegate Slides/Issue 1.1/ April 2008

46
PLEASE PRINT ALL ENTRIES CLEARLY - THANK YOU.

DAILY or SHIFT DATA CAPTURE FORM AND OEE CALCULATION


Machine:
ADL Capper * Breaks (45 mins), PM, CI,

Date / Shift
19/10/04

Store/Product
Rarden case

Operation:
Capping D=B-A-C

Cell:
Grp 4 Minutes/Piece

A: Shift Start Time


06:00

B: Shift End Time


14:00

C: Agree Down Time*


45mins

D: Running Time (Mins)


7hrs 15 mins = 435 mins

E:Machine Rate:
0.1 minute/case

Event No.

Spare Start Time

Downtime Type of Loss End Time (code)

Duration

Comments/details of Breakdown Losses (including parts used) for codes E11, E12 & E 13.

435/435x100 = 100%
F: Total Duration of Lost Time (mins)
D- F 0 mins J divided by D x100

G: Good Rounds Packed in Shift:


E x (G+H) divided by J x 100

2750 G divided by (G+H)

H: Rounds Scrapped

10

J: Operating Time:

435

Availability : OEE :

100.00%

Performance: 63.50%

63.9%

Right First Time 99.5%

Availability x Performance x Right First Time (As Decimals)

A. 'Material & Tool Losses B. Labour Losses


Supplier Quality A11 Parts unusable A12 Tooling unusable Delivery A21 Waiting for material A22 Waiting for tooling

LOSS CODES C. 'Planned Losses

E. 'Machine Losses
Breakdow n los ses E11 Sudden mechanical failure * E12 Sudden electrical failure * E13 PLC or softw are system failure * E14 Misc (please specify) Se t-up adjustme nt loss es E21 Setting / Adjustments Idling & Minor Stoppages E41 Breakdow n of previous machine E42 Breakdow n of subsequent machine E43 Component jamming / remove & reset Start up Los ses E61 Machine not stable on start-up

Headcount CI Activitie s B11 No Labour AvailableC11 Continuous Improvement C12 Meeting

Planned not to run C41 5C / 5S Activities C42 Process / Tool Change Over C43 Clean dow n machine C D. ' Method Losses Planne d Maintenance Activities44 Change process lubricant Duplication C21 Scheduled PPM activities De ve lopment D11 Operation repeated C51 Training

SSG06101ENUK Delegate Slides/Issue 1.1/ April 2008

SSG06101ENUK - OEE/Issue 1.1 / April 2008

23

The British Standards Institution 2008

Lean Six Sigma Operational - Delegate Workbook

47
PLEASE PRINT ALL ENTRIES CLEARLY - THANK YOU.

DAILY or SHIFT DATA CAPTURE FORM AND OEE CALCULATION


Machine:
ADL Capper * Breaks (45 mins), PM, CI,

Date / Shift
19/10/04

Store/Product
Rarden case

Operation:
Capping D=B-A-C

Cell:
Grp 4 Minutes/Piece

A: Shift Start Time


06:00

B: Shift End Time


14:00

C: Agree Down Time*


45mins

D: Running Time (Mins)


7hrs 15 mins = 435 mins

E:Machine Rate:
0.1 minute/case

Event No.

Spare Start Time

Downtime Type of Loss End Time (code)

Duration

Comments/details of Breakdown Losses (including parts used) for codes E11, E12 & E 13.

Record shift

F: Total Duration of Lost Time (mins)


D- F

0 mins J divided by D x100

G: Good Rounds Packed in Shift:


E x (G+H) divided by J x 100

2750 G divided by (G+H)

H: Rounds Scrapped

10

J: Operating Time:

435

Availability : OEE :

100.00%

Performance: 63.50%

63.9%

Right First Time 99.5%

Availability x Performance x Right First Time (As Decimals)

A. 'Material & Tool Losses B. Labour Losses


Supplier Quality A11 Parts unusable A12 Tooling unusable Delivery A21 Waiting for material A22 Waiting for tooling

LOSS CODES C. 'Planned Losses

E. 'Machine Losses
Breakdow n los ses E11 Sudden mechanical failure * E12 Sudden electrical failure * E13 PLC or softw are system failure * E14 Misc (please specify) Se t-up adjustme nt loss es E21 Setting / Adjustments Idling & Minor Stoppages E41 Breakdow n of previous machine E42 Breakdow n of subsequent machine E43 Component jamming / remove & reset Start up Los ses E61 Machine not stable on start-up

Headcount CI Activitie s B11 No Labour AvailableC11 Continuous Improvement C12 Meeting

Planned not to run C41 5C / 5S Activities C42 Process / Tool Change Over C43 Clean dow n machine C D. ' Method Losses Planne d Maintenance Activities44 Change process lubricant Duplication C21 Scheduled PPM activities De ve lopment D11 Operation repeated C51 Training

SSG06101ENUK Delegate Slides/Issue 1.1/ April 2008

48
PLEASE PRINT ALL ENTRIES CLEARLY - THANK YOU.

DAILY or SHIFT DATA CAPTURE FORM AND OEE CALCULATION


Machine:
ADL Capper * Breaks (45 mins), PM, CI,

Date / Shift
19/10/04

Store/Product
Rarden case

Operation:
Capping D=B-A-C

Cell:
Grp 4 Minutes/Piece

A: Shift Start Time


06:00

B: Shift End Time


14:00

C: Agree Down Time*


45mins

D: Running Time (Mins)


7hrs 15 mins = 435 mins

E:Machine Rate:
0.1 minute/case

Event No.

Spare Start Time

Downtime Type of Loss End Time (code)

Duration

Comments/details of Breakdown Losses (including parts used) for codes E11, E12 & E 13.

0.1x(2750+10)/435 x100 = 63.9%


F: Total Duration of Lost Time (mins)
D- F 0 mins J divided by D x100

G: Good Rounds Packed in Shift:


E x (G+H) divided by J x 100

2750 G divided by (G+H)

H: Rounds Scrapped

10

J: Operating Time:

435

Availability : OEE :

100.00%

Performance: 63.50%

63.9%

Right First Time 99.5%

Availability x Performance x Right First Time (As Decimals)

A. 'Material & Tool Losses B. Labour Losses


Supplier Quality A11 Parts unusable A12 Tooling unusable Delivery A21 Waiting for material A22 Waiting for tooling

LOSS CODES C. 'Planned Losses

E. 'Machine Losses
Breakdow n los ses E11 Sudden mechanical failure * E12 Sudden electrical failure * E13 PLC or softw are system failure * E14 Misc (please specify) Se t-up adjustme nt loss es E21 Setting / Adjustments Idling & Minor Stoppages E41 Breakdow n of previous machine E42 Breakdow n of subsequent machine E43 Component jamming / remove & reset Start up Los ses E61 Machine not stable on start-up

Headcount CI Activitie s B11 No Labour AvailableC11 Continuous Improvement C12 Meeting

Planned not to run C41 5C / 5S Activities C42 Process / Tool Change Over C43 Clean dow n machine C D. ' Method Losses Planne d Maintenance Activities44 Change process lubricant Duplication C21 Scheduled PPM activities De ve lopment D11 Operation repeated C51 Training

SSG06101ENUK Delegate Slides/Issue 1.1/ April 2008

SSG06101ENUK - OEE/Issue 1.1 / April 2008

24

The British Standards Institution 2008

Lean Six Sigma Operational - Delegate Workbook

49

What about a new machine?


We can see an improvement of 17% on Machine Availability and an increase of 18% on OEE We would break manufacturing records:
Allow delivery to customer to promise make better use of Labour watching a broken machine has to be unfulfilling as well as a waste

There would be a payback for the capital investment First we need some data show how bad things are

SSG06101ENUK Delegate Slides/Issue 1.1/ April 2008

50

OEE is:
A tool for Cells to record and then identify where their Manufacturing weaknesses are, and to rectify these by CI Meetings, seeking assistance from Engineering, QA and Finance or other departments where necessary.

SSG06101ENUK Delegate Slides/Issue 1.1/ April 2008

SSG06101ENUK - OEE/Issue 1.1 / April 2008

25

The British Standards Institution 2008