PRODUCTION AND OPERATIONS MANAGEMENT

ASSIGNMENT

Investigating how to improve performance of a small

manufacturing plant using O.E.E (Overall equipment
effectiveness) as a tool

Submitted to

Dr. S Srinivasan
Professor
National Institute of Technology, Trichy

Submitted by

Abhay Vishnu V S 215117060

Arjun J Poothara 215117018

NATIONAL INSTITUTE OF TECHNOLOGY, TIRUCHIRAPPALL

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Table of Contents

1 Abstract ..............................................................................................................................3
2 Introduction ..................................................................................................................... 4
3 Problem discussion.......................................................................................................... 5
Presentation of problem ....................................................................................................6
Problem formulation ........................................................................................................6
Purpose............................................................................................................................. 6
Relevance ......................................................................................................................... 6
Limitation ........................................................................................................................ 7

4 Literature Review ........................................................................................................... 7

5 Company Profile .......................................................................................................... 16

6 Analysis and Calculation ............................................................................................. 17

7 Result.............................................................................................................................. 22

8 Conclusion .................................................................................................................... 23

9 Reference ...................................................................................................................... 24

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1 ABSTRACT

In this project, a part of the production system of a company is studied to find the problems of the
production system to make the improvements and to recommend some points to the company for
the achievements of its goals. For this purpose, the overall equipment effectiveness calculations
have been used to see the current situation of the production system of the company. OEE (Overall
Equipment Effectiveness) is a universally accepted method for measuring the improvement
potential of a production process – with one simple number. Measuring makes it easier to improve,
and improving productivity (by eliminating waste) is the core objective of Lean Manufacturing.

These calculations of the O.E.E. of the different production work stations make the clear picture
of the problems. It calculates the availability of the production system which shows that
maintenance system’s effectiveness. The quality rate calculations of the work stations show the
conditions of the machines and the worker’s skill and the calculations of the performance
efficiency of the work stations show the utilization of the machines. The result of this project after
all the calculations of O.E.E. is that there is a problem in the utilization of the machines.

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2 INTRODUCTION

Efficiency and effectiveness is the buzzwords in today’s competitive market. Greater the efficiency
and effectiveness, more the productivity in the organization. Overall Equipment Effectiveness
(OEE) is a widely used performance indicator in manufacturing industries around the world. It was
initiated when Nakajima [1] introduced the Total Productive Maintenance Concept (TPM) where
the main goal is to improve and sustain equipment efficiency. Most of the research involving the
OEE measure is, thus, related to maintenance [2, 3], but also to areas such as performance
measurement [4-6] and productivity improvements.

The OEE measure is considered most suitable for semiautomatic and automatic manufacturing
processes [11] and it originates from the highly automated semiconductor industry . It is defined
as the ratio between the time spent on producing goods of approved quality to the scheduled
production time (loading time) [1]. One of the main reasons for the widespread application of OEE,
among both researchers and practitioners, is that it is a simple, yet comprehensive, measure of
internal efficiency [5]. In particular, the measure is incorporated as an important driver for
improvement initiatives [4, 7].

In today’s competitive environment, companies want to get the benefits of the different techniques
which are being used in the product processes. They have implemented total quality management
(TQM), just in time (JIT) manufacturing and total employee involvement (TEI). Now many
companies have shifted their focus to optimization of their assets. One of the main parts of the
company which has a strong influence on the assets is the maintenance department or the
employees responsible for maintenance (Wireman T.1998). the different concepts to meet the
requirements of the manufacturing plant are not successful without the support of the quality and
maintenance strategy. For example, JIT manufacturing concept demands for an effective and
efficient maintenance which can ensure smooth flow of production and ideally, cent percent
quality cost effectively. The maintenance adds to customer value in terms of profit, quality, time
and service. Therefore, the maintenance function has become important for a manufacturing
company’s ability to maintain its competitiveness. Without well maintained equipment; it will not
be advantage in the market that requires low cost products at a high quality to be delivered quickly.

There is no doubt that the maintenance has a vital role in the companies. Now a day most of the
companies are giving attention to this important function which is considered as the necessary evil
for the companies, i.e. an expense to the companies and a non-value addition function. The
companies cannot survive for long time without considering the maintenance as an important
function because they will be put out of the business by the companies that are considering the
maintenance as a competitive weapon. Now the companies are looking it as a way to reduce the
cost of producing their products.

There is no doubt that it is another main area of cost. The cost reduction of this area is not meaning
the decrease in service or the quality of the service. It means that the good control of the
maintenance organization. The companies have used different organisational structures, change
reporting structures, upsizing, downsizing, contracting out, and empowered teams for the purpose
to control the maintenance. It has been realised that a typical developed system consists not only

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of mechanical components but also other elements such as electronic, hydraulic, electromechanical
elements, software and human beings are involved in the system. This means that the disturbance
in the production process may occur due to different factors such as the failures of the important
components of equipments, the quality of the purchase materials and spare parts, design,
manufacturing process control, management systems and human error. [6]

The effectiveness of the manufacturing companies remains at the certain level. This is due to
improper maintenance and unavailability of the equipments. In most of the manufacturing plants,
the equipment is susceptible to failure through breakdown maintenance, deterioration in
performance through age and use and obsolescence due to improvements in the technology.
Maintenance has a strong effect on above mentioned areas. Also, it can reduce the cost of the
manufacturing process, improve the quality and capability of the production process. These
internal improvements of the manufacturing system can be more profitable, improve the
environment and safety. The unforeseen stops, speed losses, and quality defects in the operating
equipments reduce the working potential of the manufacturing plant from twenty to seventy
percent. These factors become the reason for the production losses and other indirect hidden costs.
Ultimately, it affects the overall performance of the company. The interruptions are not only due
to the maintenance but bad maintenance can be important part of the causes of disturbances
(Jonsson P., 1999). The importance of maintenance has been increased than before, due to its role
in maintaining and improving availability, performance efficiency, and quality products, on time
deliveries, the environment, safety requirements and overall plant productivity at a high level.

2 PROBLEM DISCUSSION

Nowadays many companies are interested to improve their maintenance system. Because, they
have come to know that this is the system through which companies can reduce the cost of their
products and can develop a reliable production process. A well-designed maintenance structure
can be helpful for the companies to get the competitive advantages. But majority of companies are
not able to manage a maintenance system. The two main reasons for that are the lack of proper
measurement and the lack of control systems for maintenance. [6]

The main goal of the maintenance is to reduce the failures of the industrial plant, machinery and
equipments. This goal can be achieved by using different maintenance approaches such as
corrective maintenance and preventive maintenance etc. A good maintenance approach and
schedule cannot be 100 percent effective at all the time. Unforeseen equipment breakdowns and
requests reduce the efficiency of the plan. Even now a good maintenance schedule can get 70 to
90 percent efficiency [6]. The detection and implementation of a suitable maintenance approach
makes the companies able to prevent the premature maintenance cost, maintain the stable
manufacturing capabilities and control the deterioration of the system. In other words, the company
can improve its performance if it implements a suitable maintenance approach for eliminating the
causes of production disturbances.

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Presentation of problem

The idea with this project is to see the current situation of the company. Is the company using its
manufacturing equipments in a proper way to get the competitive advantages? If not, then find out
the main reason for that. Which kind of problem is there i.e. availability, quality or performance
efficiency? And what is the influence of these problems to achieve the goals of the company. The
company cannot compete in the competitive market unless it uses it resource and capabilities to
the maximum level.
The company must have to work to get rid of the problems to get the competitive advantages with
respect to cost, service, quality and on time delivery. These issues do not allow the company to
achieve its set goals

Problem formulation

• To investigate the current situation of the production of the case company.

• To pick up the weakening in the production system those do not allow the company to achieve
its full capacity and meet the set goals.

• To suggest the ways to improve the situation.

Purpose

The purpose of this case study is to take a systematic and scientific way to analyse the current
situation and suggest the ways to improve it to achieve the set goals.

Relevance

Now a days companies are realizing the importance of the maintenance in the competitive
environment. They are looking to get the benefits of the maintenance. They want to make a reliable
manufacturing system with minimum failures and to improve the production capacity of their
plants. This is the main focus of the maintenance. The overall equipment effectiveness of the
production process is the way of understanding the current situation and it gives the direction to
put forward an initiative to improve the situation. Because it makes the problems clear and the
effect of these problems on the company’s business can be seen easily. The value of this can be
increased with the help of the full participation of the employees from management to workers and
a maintenance system in the company. This study future will show the way the company’s
profitability can be improved and the set goals can be meet.

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Limitations

The limitations of this case study are to study one manufacturing company and two production
processes because these are the main production lines of the case company and of the time
limitations. We are not able to study all the machines individually in selected work stations. We
use the average value of all the machines at a work station. All the calculations are based on one
year’s data (2018).

4 LITERATURE REVIEW

Nowadays the costumer’s demand is increasing. They want quality products at low cost with high
service level. This attitude of the market compels the companies to make research on their
production systems. Therefore, every company wants to utilise their machines and equipments at
the highest possible extent. This is possible only if they have a good maintenance system which
makes the companies manufacturing equipments a best possible working condition. In this chapter,
the theory about the maintenance concept will be presented.

Maintenance:

The methods, strategies, and practices followed to keep an industrial plant or factory running
efficiently is called Plant maintenance. This includes regular checks of equipment to ensure proper
functioning, to cleaning garbage bins and toilets. Plant maintenance ultimate motto is to create a
productive working environment that ensures workers safety too. The ways to maintain plants or
facilities are often different types.

Steel mills have different machinery, setting and layout, which demand a total different
maintenance ways and procedure compared to other industries. Therefore, each place of
manufacturing generally has its own maintenance plan, tailored to its particularities. One of the
ways usually followed by plants is employing their own maintenance staff, includes on-site
engineers, and others, whose job is to make sure that machines continue to operate effectively.

Reliability centered maintenance is recognized to be an efficient maintenance strategy often

adapted in factories. Because, this approach not only seeks to maintain minimal levels of plant
efficiency, but also looks for ways to improve production, increase operating procedures, etc. The
increase in operating procedures leads to maximizing a machine's uptime resulting increase in the
amount of time the equipment is actually producing. The accomplishments would be like, adding
more workers to a machine or making engineering changes to make maximum utilization of the
equipment and plant.

Preventative maintenance is another important aspect to ensure plants efficient operations. One
common preventative measure is the periodic checking of machinery to see if it is operating
correctly. This prevents machinery from breaking down and helps to foresee a possible problem
that would result in loss to the business.

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Types of maintenance

Traditionally, 5 types of maintenance have been distinguished, which are differentiated by the
nature of the tasks that they include:

Corrective maintenance
The set of tasks is destined to correct the defects to be found in the different equipment and that
are communicated to the maintenance department by users of the same equipment.

Preventive Maintenance
Its mission is to maintain a level of certain service on equipment, programming the interventions
of their vulnerabilities in the most opportune time. It is used to be a systematic character, that is,
the equipment is inspected even if it has not given any symptoms of having a problem.

Predictive Maintenance
It pursues constantly know and report the status and operational capacity of the installations by
knowing the values of certain variables, which represent such state and operational ability. To
apply this maintenance, it is necessary to identify physical variables (temperature, vibration,
power consumption, etc.). Which variation is indicative of problems that may be appearing on
the equipment. This maintenance it is the most technical, since it requires advanced technical
resources, and at times of strong mathematical, physical and / or technical knowledge.

Zero Hours Maintenance (Overhaul)

The set of tasks whose goal is to review the equipment at scheduled intervals before appearing
any failure, either when the reliability of the equipment has decreased considerably so it is risky
to make forecasts of production capacity. This review is based on leaving the equipment to zero
hours of operation, that is, as if the equipment were new. These reviews will replace or repair all
items subject to wear. The aim is to ensure, with high probability, a good working time fixed in
advance.

Periodic maintenance (Time Based Maintenance TBM)

The basic maintenance of equipment made by the users of it. It consists of a series of elementary
tasks (data collections, visual inspections, cleaning, lubrication, retightening screws,) for which
no extensive training is necessary, but perhaps only a brief training. This type of maintenance is
the based on TPM (Total Productive Maintenance).

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Current scenario of plant maintenance

Outsourcing is there in every industry and at every aspect of the operations. Plant maintenance is
recognized as another important and untapped service sector in the recent decades. The result is
the pop up of many new private plant maintenance companies and diversification of the existing
services by reaching other players in the industry with their internal style of plant maintenance.
These firms are generally contracted by a factory to check equipment and make repairs. They can
also perform tasks, such as corrosion prevention, acid proofing, or repairing concrete floors.

Siemens VAI for metal industries is providing comprehensive service expertise throughout the
entire lifecycle of metal plants. It has a huge variety of service solutions those supports each and
every operational phase in steel plants and rolling mills. The solutions include service contracts,
spare and wear parts service, consulting and engineering, and taking over the handling of
maintenance activities and migration/upgrade measures. The Siemens Metals Service & Support
Center gives a central expert help desk to handle all questions and problems regarding plant
operation. All these services and efforts reduce downtime and cost of plants, increase availability
and productivity, ensure personnel safety and enable environmentally friendly solutions. In detail,
Siemens support in electrical and metallurgical areas of plant are again categorized into few aspects
like.

» Maintenance services
» Operational support
» Plant upgrades
» Plant migration and optimization

A to Z assistance

A plant maintenance plan can include scheduling times for equipment checkups, trouble-shooting,
and general clean-up. Since it is a default requirement for plants from equipment to assembly lines,
a stoppage of the line can be financially damaging.

Predominant Engineers & Contractors Pvt Ltd (PECL) is established to serve Sponge Iron, Steel
& Power Plants. The company provides a wide range of assistance like project finance services,
project implementation services, operation & maintenance services, turnkey services, plant
modernization / expansion projects and other consulting services. While the PECL Plant Operation
& Maintenance Services includes:

» Management of Operation & Maintenance of entire Integrated Steel Complex and Power Plants.
» Development and establishment of experienced skilled and unskilled personnel.
» To provide advisory services for spare part management system
» To provide plant Improvement advisory services.
» Running / routine / preventive / minor breakdown maintenance.
» Long term major maintenance work.
» Annual maintenance & overhauling & management of AMC with OEM.
» Accidental repairing of any equipment.
» Supervision of housekeeping.

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Tata Steel's approach to maintenance of its plant is innovative as it is closely guided by the market,
delivery and other requirements. This approach entails the highest level of output like, plant
availability, equipment reliability, and the rate of process and quality with the lowest input vise,
cost of labour, material and maintenance time over the entire life cycle of the machines. Hence,
Tata Steel has developed sophisticated predictive maintenance technology for continuous
production running. This facility is unique to the company, because the procedure goes beyond the
usual practice of monitoring the equipment condition using only one parameter. Mr. C Mishra,
Chief, Mechanical Technology Group shared on the Tata Steel website, that the maintenance
procedures monitor temperature, thermal profile, vibration, condition of lubricants or particle size
count and then synthesize all the information for an accurate diagnosis. The department feeds the
data online to get not only a list of possible problems but also the probability of their occurrence.
Hence, the whole procedure of maintenance planning very cost effective.

Maintenance Objectives

Maintenance is vital for the process industry, this fact was recognised and raised with the
development of the Japanese’s industry. The strengthening, year by year, of maintenance
management in the process industry occurred for different reasons. In the industry, production
relies heavily on the plant itself, so that the most of the factors like productivity, quality, safety,
pollution, and production costs depend on the condition of the plant. Also, most of the industry
production is of the continuous, integrated type, so plant and equipment problems generate
enormous financial losses.

The primary objectives of maintenance are:

• To extend equipment life.

• To keep the plant and equipment in the optimal condition for production or service and
secure maximum return on the investment.
• To constantly maintain the ability to cope with emergencies.
• To assure safety.

The aim of the maintenance management was kept maintenance program operating efficiently
toward the objectives of the maintenance.

Once the equipment is assembled and fitted, test operations are completed and the equipment is
handed over to the company and started up. At this point, the maintenance management step
begins, covering the life cycle of the equipment. Maintenance management deals with the
maintenance of equipment in various technical ways by using the different maintenance
approaches. (Suzuki T., 1992)

Maintenance and Production relationship

Maintenance has an important place in any organisation and it is to be positioned as a sub process
or integrated part of the overall production process. The relation between maintenance and

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production can be shown in the figure 3.1 below. The primary inputs to production process are
material, energy and manpower. These primary inputs are then transformed into primary output
i.e. the final product. This transformation of primary inputs to primary output leads to a secondary
production output that is the maintenance demand. Maintenance affects the potential production
capacity of the plant and is necessary to keep the potential production capacity of the plant on the
maximum level. In other words, it is the secondary input of the production process.
and reputation in the market).

Definition of TPM

Total productive maintenance is also known as the productive maintenance with everyone’s
participation. It can be defined as including the following goals:

1. The TPM is concentrate to maximize the overall equipment effectiveness.

2. The TPM has the aim to establish a comprehensive preventive maintenance system for the
whole life span of the equipment.
3. The TPM involve all departments which make planes, use and maintain the equipment.
4. TPM makes the participation of all employees from top management to workers.
5. TPM promotes the preventive maintenance through motivation management i.e through
autonomous small group activities.

TPM has the main goal to maximize the overall equipment effectiveness. So to achieve its goal,
TPM try to reduce the six big losses that are the main problems to get the high equipment
effectiveness. The link of the losses and the effectiveness in TPM is defined in terms of both the
quality of the product and the equipment availability.
On the base of the detail study of the factors involve in the reduction of the equipment effectiveness
are divided into six main types.

Down time losses

The term downtime or outage duration, refers to periods when a particular system is unavailable
for use. During that period of time, a system is unable to provide or perform its primary function.
The cause of unplanned downtime of IT services, is primarily due to infrastructure failures,
network outages and server outages. Most of these, while inconvenient to your business and less
than ideal for your customers, can be resolved, and the tech improved to avoid a repetition of the
problem.

Breakdown losses

These kinds of losses are due to the defects of the equipment which need any kind of repair or
maintenance. These kinds of losses consist of downtime along with the Setup and adjustment
losses.

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Setup and adjustment losses

These losses are due to the changes in the operating conditions, like the start of the production or
the start of the different shifts, changes in products and condition of the operation. The main
examples of this kind of losses are equipments changeovers, exchange of dies, jigs and tools. These
losses consist of setup, start-up and adjustment down times. The amount of these losses is
calculated in the form of downtime.

Speed losses

These losses are due to the reduction in speed of the equipment. In other words the machine is not
working at the original or theoretical speed. If the quality defect and minor stoppages occurs
regularly then the machine is run at low speed to cover the problems. These losses are measured
in the term of theoretical to the actual operating speed ratio.

Defect or Quality losses

Any reworked or rejected product shows direct time loss due to poor quality Sporadic defects are
easily fixed, so they are rarely left uncorrected. Chronic defects in contrast, are often left as they
are, because their causes are difficult to perceive and measures to correct them are seldom effective
to realize zero defects, it is necessary to radically review defective phenomena.

Quality defect and rework losses

These losses are due to the defective products during the routine production. These products are
not according to the specifications. So that rework is done to remove the defects or make a scrap
of these products.

Labour is required to make a rework which is the cost for the company and material become a
scrap is also another loss for the company. The amount of these losses is calculated by the ratio of
the quality products to the total production.

Yield losses

These losses are due to wasted raw materials. The yield losses are split into two groups. The first
one is the raw materials losses which are due to the product design, manufacturing method etc.
The other group is the adjustment losses due to the quality defects of the products which are
produced at the start of the production process, changeovers etc.

These six big losses indicate the three main topics which are the availability, performance rate and
total yield rate (quality rate). These three topics are the base for the overall equipment effectiveness
calculations.

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TQM

Total Quality Management (TQM) describes a management approach to long-term success

through customer satisfaction. In a TQM effort, all members of an organization participate in
improving processes, products, services, and the culture in which they work.

Total Quality Management Principles: The 8 Primary Elements of TQM

Total quality management can be summarized as a management system for a customer-focused

organization that involves all employees in continual improvement. It uses strategy, data, and
effective communications to integrate the quality discipline into the culture and activities of the
organization. Many of these concepts are present in modern Quality Management Systems, the
successor to TQM. Here are the 8 principles of total quality management:

1.Customer-focused

The customer ultimately determines the level of quality. No matter what an organization does to
foster quality improvement—training employees, integrating quality into the design process,
upgrading computers or software, or buying new measuring tools—the customer determines
whether the efforts were worthwhile.

2. Total employee involvement

All employees participate in working toward common goals. Total employee commitment can
only be obtained after fear has been driven from the workplace, when empowerment has occurred,
and management has provided the proper environment. High-performance work systems integrate
continuous improvement efforts with normal business operations. Self-managed work teams are
one form of empowerment.

3. Process-centered

A fundamental part of TQM is a focus on process thinking. A process is a series of steps that take
inputs from suppliers (internal or external) and transforms them into outputs that are delivered to
customers (again, either internal or external). The steps required to carry out the process are
defined, and performance measures are continuously monitored in order to detect unexpected
variation.

4. Integrated system

Although an organization may consist of many different functional specialties often organized into
vertically structured departments, it is the horizontal processes interconnecting these functions that
are the focus of TQM.
Micro-processes add up to larger processes, and all processes aggregate into the business processes
required for defining and implementing strategy. Everyone must understand the vision, mission,

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and guiding principles as well as the quality policies, objectives, and critical processes of the
organization. Business performance must be monitored and communicated continuously
An integrated business system may be modeled after the Baldrige National Quality Program
criteria and/or incorporate the ISO 9000 standards. Every organization has a unique work culture,
and it is virtually impossible to achieve excellence in its products and services unless a good quality
culture has been fostered. Thus, an integrated system connects business improvement elements in
an attempt to continually improve and exceed the expectations of customers, employees, and other
stakeholders.

5.Strategic and systematic approach

A critical part of the management of quality is the strategic and systematic approach to achieving
an organization’s vision, mission, and goals. This process, called strategic planning or strategic
management, includes the formulation of a strategic plan that integrates quality as a core
component.

6. Continual improvement

A major thrust of TQM is continual process improvement. Continual improvement drives an

organization to be both analytical and creative in finding ways to become more competitive and
more effective at meeting stakeholder expectations.

7. Fact-based decision making

In order to know how well an organization is performing, data on performance measures are
necessary. TQM requires that an organization continually collect and analyze data in order to
improve decision making accuracy, achieve consensus, and allow prediction based on past history.

8. Communications

During times of organizational change, as well as part of day-to-day operation, effective

communications plays a large part in maintaining morale and in motivating employees at all levels.
Communications involve strategies, method, and timeliness.

Overall equipment effectiveness (O.E.E)

The overall equipment effectiveness is the main goal of the TPM system. It is the benchmark of
the any TPM process and is used to measure the equipment effectiveness. The formula for
equipment effectiveness measures the availability, the rate of performance, and the quality rate. It
can be done with the involvement of all departments to measure the equipment effectiveness .

The formula of the overall equipment effectiveness is as follows

O.E.E = Availability * Performance rate * Quality rate

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1. Availability

The availability is calculated as the required availability minus the downtime and then divided by
the required availability. This can be written in the form of formula as

Availability = Required availability – Downtime * 100

Required availability

The required availability can be defined as the time of production to operate the equipment minus
the other planned downtime like breaks, meetings etc. The down time can be defined as the actual
time for which the equipment is down for repairs or changeovers. This time is also sometimes
known as the breakdown time. The output of this formula gives the true availability of the
equipment. Then further this figure is used in the overall equipment effectiveness formula to
measure the effectiveness of the equipment.

2.Performance rate

The performance rate can be defined as the ideal or design cycle time to produce the item
multiplied by the output of the equipment and then divided by the operating time. This will give
the performance rate of the equipment. The formula to calculate the performance rate can be
expressed as

Performance rate = design cycle time * output * 100

Operating time

3. Quality rate

The quality rate can be expressed as the production input into the process or equipment minus the
volume or number of quality defects then divided by the production input. The quality rate can be
expressed in a formula as

Quality rate = production input – quality defects * 100

Production input

The production input means that the unit of product being feed into the production process. The
quality defects mean the number of products which are below the quality standards i.e. the
rejected items after the production process. This formula is very helpful to calculate the quality
problems in the production process.

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5 COMPANY PROFILE

PS Works is a leading Sheet Metal Fabricators Manufacturer located in Tumkur, Karnataka, India.
Fabrication is essentially the process of conferring the desired shape to the metal that helps
inevitably in the construction works. They provide the best quality of fabricated materials to the
residents of the country that satisfies the needs of the customers in a perfect way.

They supply the aluminum fabricators to you that provide the best durability and resistance against
corrosion. The aluminum metal has the right strength to weight ratio and you can avail the right
metal fabricators from them. As accomplice in configuration and assembling process, PSW
furnishes the innovative finesse your operation needs in making high precision parts and
assemblies for your item requisitions. Established in 1998, they have based notoriety on the nature
of our administrations incorporating designing back, model plan and creation for practical short-
run or high-volume processing. With our encountered group of configuration designers, talented
specialists and handling authorities, we can handle all aspects of your employment from idea to
last appointing. With clients in such remarkably specialized precision-based fields as medicine,
telecommunication, and electronics. PSW stands as a standout amongst the most trusted contract
makes in the business with aptitude that arrives at past the business fabricators.

Facilities at PSW consists of the following processes:

Cutting:

CNC Laser cutting is a technology that uses a laser to cut materials

Punching:
CNC Punching from 0.8 to 3.00mm width of 1250 x 2500mm without repositioning. More than
2500mm width is also possible.

Bending:
Components can be bent up to 3mm of any material with an accuracy of 0.2mm by using CNC
Bending Machine. CNC Bending 0.8 to 3.00mm steel sheet for the length of 2.5m with tab folding
accuracy of ±0.2mm.

Riveting:
The process of riveting to fix the fasteners like PEM fasteners, Clifa fasteners, etc., by using high
accuracy NC controlled PEM inserting machines from LCM Control, Haeger and Pemserter.

Spot welding:

 Spot welding of steel thickness from 0.8 to 3.00mm.

 Aluminium spot welding of 3+3mm thickness.

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6 ANALYSIS AND CALCULATIONS

1.O.E.E calculation of CNC cutting Machine

Working 24 hour a day

Setup time per day 10 min

Break time per day 130 min
Preventive maintenance per year 1 week
No. of failure per month 3
Time to cover failure 36 hours
short stoppages per years 1000
Time for one short stoppage 20 min

Planned down time = Setup time for machine + Break time + preventive maintenance
= 10+130+27.6= 167.6 min/day

Unplanned down time, due to failures /day= Failures per month

Working days / month
= 3× (36) × 60/30 = 216 min/day

Unplanned down time, due to short stoppages = 1000*20 =54.8 min/day

365

Loading time = total time – planned down time = 1440 – 167.6 = 1272.4 min /day
Operation time = loading time – unplanned down time

= 1272.4– (216+54.8) = 1001.6 min/day

Availability

Availability = Operation time = 1001.6/1272.4 = 0.7871 = 78.17%

Loading time

Quality rate

No. of products per day=310/7=44.3

Rejection per day of products =4.2

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Quality rate = Processed amount – Defective amount
Processed amount

= 44.3-4.2 = 0.9051 = 90.51%

44.3

Performance efficiency

Machine cutting capacity

1 m= 2.8 min

Machine actual speed

1 m= 3.6 min

Process amount = (1m/3.6min) 1001.8 min = 278.28 m

Performance efficiency = Processed amount * Ideal cycle time

Operation time

= 278.28 *2.8 = 0.7778 = 77.78%

1001.8

O. E. E = Availability* Quality rate* Performance efficiency

O. E. E = 0.7817 × 0.9015 × 0.7778 = 0.548 = 54.8 %

2.O.E.E. calculation of CNC Bending Machine

The Bending machines are working 12 hours a day

Planned down time = Setup time for machine + Break time + Preventive maintenance
= 69 min/day

Unplanned down time, due to failures /day = Failures per month = 72 min/day
Working days / month

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Unplanned down time, due to short stoppages = 25*25 = 1.72 min/day
365

Loading time = total time – planned down time = 390 min /day

Operation time = loading time – unplanned down time = 390 -73.72 = 316.3 min/day

Availability

Availability = Operation time = 316.3/390 = 0.8105 = 81.05 %

Loading time

Quality rate

No. of products per day= 275/7= 39.3

Rejection per day of product = 6.5

Quality rate = Processed amount – Defective amount = 39.3- 6.5/39.3 = 83.4%

Processed amount

Performance efficiency

Machine cutting capacity

Ideal time for one stroke = 0.19 min

Actual time for one cycle stroke = 0.68 min

Process amount = (1stroke/0.68 min) *390 min = 573.52 stroke/day

Performance efficiency = Processed amount * Ideal cycle time

Operation time

= 573.52*0.19 = 0.3446 = 34.44 %

316.13

O. E. E = Availability* Quality rate* Performance efficiency

= 0.8105 × 0.834 × 0.3444 = 23.27%

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3.O.E.E. calculation of Punching machine

Loading time = 375 min/day

Operation time = 266 min/day

Availability

Availability = Operation time = 266/375 = .7093 = 70.93 %

Loading time

Quality rate = Processed amount – Defective amount = 98.2 %

Processed amount

Performance efficiency = Processed amount * Ideal cycle time = 60.2%

Operation time

O. E. E = Availability* Quality rate* Performance efficiency

O. E. E = 0.7093 × 0.983 × 0.602 = 41.97%

4.O.E.E. calculation of Welding work station

Loading time = 380 min/day

Operation time = 305 min/day

Availability

Availability = Operation time = 305/38 0= .8026 = 80.26 %

Loading time
Quality rate = Processed amount – Defective amount = 92.1 %
Processed amount

Performance efficiency = Processed amount * Ideal cycle time = 38.2%

Operation time

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O. E. E = Availability* Quality rate* Performance efficiency

O. E. E = 0.8026 × 0.921 × 0.382 = 28.23%

O.E.E. calculation of Line 1

O.E.E. OF LINE 1 = O.E.E. of Laser cutting machine *O.E.E. of bending machine*O.E.E. of welding
work station

O.E.E. OF LINE 1 = 0.548 × 0.2327 × 0.2823 = 3.59%

O.E.E. calculation of Line 2

O.E.E. OF LINE 2 =O.E.E. of punching machine*O.E.E. of welding work station

O.E.E. OF LINE 2 = 0.4197 × 0.2823 = 11.84 %

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7 RESULTS

Bending Machine

O.E.E. of the CNC Bending machine =23.27 %

The O.E.E. of the CNC Bending machine is the lowest as compared to the others. So, to increase
the efficiency of production, we need to improve O.E.E values of bending machine.

This can be done by increasing the performance efficiency of bending machine (34.44 %).
The performance efficiency has the heavy impact on the overall equipment effectiveness of this
work station. Ideal time for one stroke in punching machine is 0.19 min but actual time is much
greater (0.68 min). This is the key factor decreasing performance efficiency.

CNC cutting Machine

O.E.E. of the CNC Cutting machine = 54.58 %

The O.E.E. of the CNC cutting machine is good as compared to the others. But increasing
availability from 78.17% to a higher value can be done to increase O.E.E value.

Punching machine

O.E.E. of the CNC Cutting machine = 41.97 %

The O.E.E. of the punching machine is good as compared to the others. But the availability and
the performance efficiency can be slightly increased.

Welding work station

O.E.E. of the CNC Cutting machine = 28.23%

The O.E.E. of the CNC welding work station is the low as compared to the others. So, to increase
the efficiency of production, we need to improve O.E.E values of welding work station.

This can be done by increasing the performance efficiency of welding work station.

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8 CONCLUSIONS

OEE (Overall Equipment Effectiveness) is a universally accepted method for measuring the
improvement potential of a production process – with one simple number. Measuring makes it
easier to improve, and improving productivity (by eliminating waste) is the core objective of Lean
Manufacturing. The value of O.E.E. shows that the company has the production system to produce
the products in more quantity in the same production time by improving the current situation i.e.
by improving the availability, quality rate and performance efficiency. These three factors indicate
all flaws in the production system.

The O.E.E. of the bending machine is the lowest as compared to the others. So, to increase the
production, the O.E.E. values of all work stations indicate the bending machine is the key point to
start the improvements.

Further, the performance efficiency value of this work station is the lowest as compare to the other
factors i.e. availability and quality rate. This indicates the exact point to start the improvements in
the current production system of the company.

The improvement of the performance efficiency of the bending machine will increase the value of
the O.E.E. of the bending machine. This increase of the value of the O.E.E. of the bending work
station will increase the O.E.E. value of the production line 1.

The role of the maintenance to develop a good production system and to improve the O.E.E. value
of the production machines cannot be ignored but it is not the main problem of the case company.
The lower performance efficiency of the work stations shows that there is a problem of the man
power management.

Thus the O.E.E. is the tool for the company to assess the current situation and to start to make the
improvements from particular point. The maintenance is the sporting activity which helps to make
the improvements in the current condition and to improve the value of O.E.E. The start of the
improvement in the value of O.E.E. and the development of the preventive maintenance plan for
the machines will be the first step for the company towards the implementation of the TPM.
Because these factors are the main objectives of the TPM.

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Reference

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[2] Muchiri, P., et al., Development of maintenance function performance measurement

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[10] Suzuki T. (1992), New direction for TPM, Massachusetts

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