OEE Project Starter Kit - JMP Solutions · PDF file OEE Project Plant-Wide Information &...

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Transcript of OEE Project Starter Kit - JMP Solutions · PDF file OEE Project Plant-Wide Information &...

  • 1 www.jmpsolutions.com

    A strategic advantage for any manufacturing enterprise can be found within its data.

    Data can enable you to become an information-driven plant or facility. Furthermore,

    obtaining data and applying that data for the optimization of the company will further your

    competitive edge.

    The focus is identifying and delivering the right data, at the right time, to the right person.

    To do this, you must understand what data is required and then select the appropriate technology

    to provide that information in a functional matter.

    Common reasons why manufacturers do not have a plant-wide information and reporting system developed:

    • More project focused; not a corporate directive

    • Underestimate potential benefits

    • Not clear on the financial implications and ROI that can be realized

    • Only focused on production itself, not the infrastructure to support the production

    • No time to plan

    • Plan to implement an ERP or MES system in the near future and want to wait

    • Have already implemented an ERP system and feel that it is enough

    • Not sure who is responsible, IT or Engineering?

    General benefits resulting from implementing a plant-wide information and reporting system:

    • Increase plant quality and throughput or yield

    • A reporting system that can track information across multiple years to reduce warranty and recall issues

    • A clearer focus on improving the performance of machinery and equipment already in the plant

    • Avoid making inappropriate purchases

    • Use definitive data to verify how an asset, machine, cell, line or area is truly performing

    • Increase regulatory compliance and preparedness for disaster recovery

    OEE Project Starter Kit

    A Self Assessment Tool For Implementing Overall Equipment Effectiveness Systems

  • 2 www.jmpsolutions.com

    Plant-Wide Information & OEE

    Where is data required during the manufacturing process? This is a

    significant consideration for manufacturers.

    Consider the following company needs:

    • Operation needs production data to facilitate scheduling requirements and

    capacity/workflow analysis. It will help them identify over/under-utilized equipment

    and what orders have been fulfilled on-time.

    • Maintenance requires downtime data to address preventative maintenance adjustments.

    This can include identifying the top five breakdown events eating away at production time.

    • Quality team requires reject/scrap information for testing, recalls, and customer data requirements.

    • Operators like feedback on how they are performing against targets, particularly if there are areas they can

    affect and/or control: OEE (Overall Equipment Effectiveness), production rate, and quality rate.

    • Finance may want to assign costs to downtime and material usage.

    The heightened focus on data systems can be attributed to many factors. Government regulatory pressures and

    industry trends have been forcing manufacturers to produce more data, more history, and more traceability

    surrounding their products and processes.

    As a solution to these varying issues and needs, manufacturers are looking at different opportunities that reside in

    becoming an information-driven plant or facility. One data opportunity that can provide a strong return on

    investment is OEE. As an industry accepted tool for measuring efficiencies, OEE can:

     Provide reliable, constant performance indicators. An effective OEE system is a constant window into the performance of your

    equipment and your people, as well as how effectively your raw materials are utilized.

     Visually and numerically identify areas for improvement. OEE will identify the areas in which you should concentrate your efforts

    for improvement. You may find an equipment issue first, then a labor issue, then be able to focus on more effective use of your raw

    materials and other purchased resources.

     Automatically log quality events for future analysis and improvement. OEE tools can use quality and reject data from packaging

    verification and other systems as part of the quality component of the OEE equation. Metal detector, checkweigher, vision system,

    and other verification system events can be logged to the OEE system.

     Positively impact supply chain reliability. Real-time visibility into your operations means that issues can be captured and addressed

    quickly before they affect shipping/delivery commitments.

     Provide baseline data for traceability and genealogy. Electronically recorded product attributes typically found in an OEE system

    are part of a batch, lot, and sub-lot traceability information. As well, highly functional OEE tools can easily associate process events

    with a lot that provides traceability beyond just ingredients.

    OEE Project Starter Kit

  • 3 www.jmpsolutions.com

    Plant-Wide Information & OEE

    OEE is a metric that can be used to analyze and improve the efficiency of your plant by focusing on equipment and process reliability.

    OEE analysis can also provide instrumental data for improvements in capacity/machine utilization. There are six “big loss” categories that

    can be directly impacted by OEE information (Figure 1): breakdowns, setup and adjustments, small stops, reduced speed, start-up rejects,

    and production rejects.

    OEE focuses on three key performance indicators: availability, performance, and quality. Although OEE components can vary slightly

    between plants and industries, Figure 2 illustrates these three KPIs in the context of time. For this reason, we created the Implementation

    Steps for an OEE System (Figure 3) — a systemized approach to planning, evaluating, and implementing information-driven plant or

    facility programs for manufacturers facility.

    OEE Component 6 Big Loss Categories Description


    Breakdowns Downtime due to unplanned maintenance,

    tooling and equipment failures.

    Set-up and adjustments Downtime due to set-up/changeover,

    material/labour shortages.


    Small stops

    Speed loss due to short (

  • 4 www.jmpsolutions.com

    Figure 3: Implementation Steps for an OEE System

    How the Starter Kit Works

    As with any data design, you need to consider all processes, explore the big picture, and think creatively on how you can

    improve on each operation. This kit is divided into five question sets. The first three have been designed to assist you in

    developing a framework around your general data enabling needs.

    The last two question sets investigate deeper into your facility to help you in the identification and selection of the most

    appropriate OEE technology for your application. Use the space provided or expand your ideas onto a notepad. Once completed,

    you will be ready for your complimentary on-site OEE review, which is discussed in more detail on the last page of this kit.


    Figure 2: OEE Key Performance Indicators

    Key Performance Indicator

    OEE Project Starter Kit

  • The Data Enabled Scorecard™

    We do not have accessible, useful, historical information for process improvement and quality control.

    1 2 3 4 5 6 7 8 9 10

    We have easily accessible, valuable, historical information for process improvement and quality control.

    We do not have automatically collected information that we can use to reduce operating costs. 1 2 3 4 5 6 7 8 9 10

    We maximize the value of the data we collect to reduce operating costs.

    Our capital budget does not include regular implementation of data collection initiatives. 1 2 3 4 5 6 7 8 9 10

    We have capital support in place to regularly implement data collection initiatives.

    We do not have a defined long-term information and data architecture plan to meet regulatory and corporate goals.

    1 2 3 4 5 6 7 8 9 10

    We have defined our long-term information and data architecture needs to meet regulatory and corporate goals.

    The information we could use to make decisions is not always available when we need it most.

    1 2 3 4 5 6 7 8 9 10 The information we need to make decisions is always available in a timely fashion.

    We do not have the information available to establish that our assets are being fully utilized. 1 2 3 4 5 6 7 8 9 10

    We can verify that our assets are being fully utilized with accurate information.

    We do not execute recall scenarios to test the viability of our data.

    1 2 3 4 5 6 7 8 9 10

    We regularly execute recall scenarios to prove that our data is readily available and accurate.

    Production related information does not flow effortlessly between our automation system and business system.

    1 2 3 4 5 6 7 8 9 10

    The flow of production related information is seamless between our automation system and business system.

    We do not have tracked lot/batch information available for proactive actions before crisis scenarios occur. 1 2 3 4 5 6 7 8 9 10

    Lot/batch tracking information is available for proactive actions before crisis scenarios occur.

    We do not have the