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S H O P L O O R S R I S
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1999 by Productivity, l nc
\
rights resenetl. No part of this book m y be reproduced or utilized in airy fonn or
by
any means, electronic or mccl~ an ica l, ncluding photocopying, recording, or
y
any infor-
omtion sto ng e and retrieval system, without
permission
in writing from the poblislicr.
Additional copies of is book and a learning package for lead ing a book study gro up arc
;w;~ilable rom the publislrer. Disco unts are a d a b l e for multiple copies through the
Sales Department (800-394-6868). Address all other inquiries to:
i'roductivit)., lnc.
P.O. Box 13390
Portland OR 9721 3.0390
United States of Arnerica
Teleplionc: 503-235-0600
I k : 503-235-0909
Email :
Cover by h'lnrk t;Veiirstei~t
Cover illnstratioo
by
Gar) Ibgaglia
Page design and composition by William Ii . B n~ ns on , ypography Services
Gmp hics by Guy Buster, Lee Sm ith. and H ann ah Borrrier
Printed and botrnd by h,lalloy Lithographing, Inc. ll tire United Stales of Arnerica
Libra? of Congress
Cataloging-in-Publicatiort
Data
O E E for operators ovcrall equ ipm ent cffectiverressI created by the f'roductivity
Developnient
Team.
1. c1n.
Includes bil~liograplrical erereoces.
ISBN 1-56327-221-0 (d k. psper)
1. Ibtal productive mainteni~ace.
2.
lrrdustrial equiprnerrt.
1. Productivity DeveIopment'Tcam (Productivity f'ress)
TS192.032 1999
658.?7-dc21
99-3532
C I P
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Publisher s Message
Getting Started
The Purpose o f This Book
What Th is Book i s Based On
Two Ways t o Use This Book
How t o Get the M os t Out of Your Reading
Overview o f the Contents
Chapter1 About TPM and
OEE
Chapter Overview
What s TPM?
What
is
OEE a nd Why
s t
Important?
Quantity Over Time is Only Part of
OEE
Effectiveness Focuses on the Equipment Not the Person
The Purpose of Measurement Is Improvement
The Role of th e Shopf loor Team
in
Us ing OEE
In Conclusion
Summary
Reflections
xv
xv
xvi
xvii
xix
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C O N T E N T S
Chapter
2
Understanding Equipment
Related Losses
9
Chapter Overview
9
Losses Reduce Overall Equipment Effectiveness 1
Visualizing OEE and the Losses
12
vailability
Performance
Quality
Availability: Downtime Losses
Failures and Repairs
Setup Time
Other Los ses to vaiiabiiity
Performance: Speed Losses
Reduced Operating Speed
Minor Stoppages
Quality: Defect Losses
Scrap and Rework
Star tup and Reduced Yield
In Conclusion
Summary
Reflections
Chapter
3
Measuring OEE
Chapter Overview
Closing the Feedback Loop
Collecting OEE Data
Defining What to Measure
Making Data Collection Simple
Processing OEE Data
The OEE Calculation
Storing OEE Data
Reporting OEE Results
In Conclusion
Summary
Reflections
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Chapter
4
mproving
O
Chapter Overview
Why Analysis
Autonomous Maintenance
Focused Equipment and Process Improvement
Quick Changeover
Stage :Separate Internal and External Setup
Stage 2: Convert Internal Setup to External Setup
Stage : Streamline All Aspects of Setup
ZQC (Mistake-Proofing)
Poka-Yoke Systems
P-M Analysis
In Conclusion
Summary
Reflections
Chapter
5
Reflections and Conclusions
Chapter Overview
Reflecting
on
What You ve Learned
Opportunities for Further Learning
Conclusions
Additional Resources on TPM, OEE, and
Equipment-Related Losses
Training
and
Consulting
Packaged Education and Support
Conferences and Public Events
Newsletter
Website
bout the Productivity Development Team
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Smoothly operating equipm en t is critical for inanufacturing today.
Most processes use m ach ines to add the value c~ istorners ay for.
In an environment that is more competitive than ever, factory
ma chin es have to work dependably to supply products \vhen the
custo~iier eeds them. Yet factories eveqwliere are plagued with
ma chine problems of one type or another. Tl ie conipanies that are
pulling ahead in the production race are those that understand
their equipnient problems and take steps to eliminate them. T h e
key to this understandiiig is overall equipment effectiveness.
Overall e quipm ent effectiveness (O EE) is a me asure that shows
how well the equipment is running. It indicates not just how
many procluets tlie m ach ine is turning out, bu t how mu ch of the
time it is actually working-and what percen tage of the outpu t is
good quality. Because it reflects these th ree imp ortant things,
O E E is an important indicator of tlie healtli of tlie equipm ent.
Tl ie condition of the equ ipm ent isn't just a ma inte nan ce issue
anymore. In Total Productive Mainte nanc e ( TP M ) approaches,
equipme nt operators help prevent equ ipme nt problems through
their knowledge and familiarity with the machines. Operators also
monitor the ma chine conclitions used for calculating O EE . This
book is intended to sha re basic lea rning tha t will help you partici-
pate effectively as your compa ny applies O E E and begins to
reduce equipment-related losses.
Ch ap ter lays a founda tion with basic definitions related to Total
Productive Ma intena nce and O EE . You
sill
learn why it is
important to track effectiveness rather than effieienc y..~ha pker
introduces the three eleme nts of O E E and their connection to
key types of equipment- rela ted losses-problems and wastes that
reduce a macliine's effeeliveness. Th is is
a
basic framework that
can be adapted to measure and begin to improve equipment
problems in many different industries.
"'Tlie OEE calciila tion and loss framework used in this Look relntes most directly to
discrete parts menufacturers, ratlrer than process industries, wliicii face sliglrtlg diffcr-
en issues, For inore or1 ineaso remco t in process in d~ ~s tr ies,ec Sozuki, cd.,
TFM
n
Process liidrrstries (Productivity, 1994).
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P U B L I S H E R ' S M E S S A G E
Chapter 3 offers a step-by-step ovenliew of the process of doing the
O E E calculatiori. O n e basic aspect is sliopfloor involvernent. It's
important for date to be collected on tlie shop floor and turned
into information for use on the shop floor-not confined to an
of ice or i~ifo rniation epartrnen t. Th is cliapter also dcscrilies how
to define what to measure and how to collect and process OEE
data. It gives examples of different i~ iforn iationdisplays that O E E
data can generate (computer software is helpful for this).
Cliqitcr 4 ktalks ab ou t how to respond to O E E information to fix
the problems. It introduces thc
5
Why nietlioil, autoriomous niain-
tenance, focused equ ipm ent iniprovement, quick changeover, niis-
take-proofing, and 1'-h4 analysis. Cha pte r
5
lielps you review your
learn ing and suggests :additional resources for exploring key topics.
It is imiioriant to remember as you read that this material is a
general oricniation to
a
coniplex topic. Application and master).
of overall equ ipm ent effecliseness often requires a deeper under-
stancling of the production nie ch an istn lie process of tising
OEE is best supporfcd by experienced consultants and trainers
who can help you tailor
it
to your company's specific situation
and address issues that may come up.
Th is book incorporates a num ber of features that will lielp you
get the niost from
it
Each cliapter begins with an o v en k w of tlie
contents. T li e book uses many illustrations to share inform. t' on
and examples in
a
visual way. Icon sy~iibolsn the margin flag key
points to reniember in each section. And Take Five questions
built into the text provide a framework for applying wliat you've
learned to your own situation.
O n e of th e niost effective ways to use this book is to read and clis-
cuss it n it h other eniployccs in group learning sessions. We have
deliberately planned the book so that
i t
can be used this way, with
chunks of information that can be covered in a series of short ses-
sions. Each chapter includes reflection questions to stimulate
group discussion.
Somc tmditior~alippro clies to OLL use I two-par t forn~~~l;ior caleii lati~ ig erfor-
mance thnt uses cycle time
;IS
an elenient. Altlxn1g11 he two-part for111111a ields
infor i~~ationlmt III~IJ.be ii l lor a d r a ~ ~ c c~mlysis,most teaiirs just starting out wit11
OEE d o not n eed that level o f detai l. For llmt reason, this bonk follows n sirr~p lcr
;~ppm;tc h, ~ s e r ly Arno Koch of illom Co~~s~tlt:irrcyn his O 7bolkit sof tu re ,
w l~ ic h oillpares aetlrd outp ut to the potcl~ti;dotllpilt if tile
I I I ?
m e were
performing at its top speed.
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P U B L I S H E R S M E S S A G E
Th is book is especially lielpful when used with the O E E Toolkit
sofhvare packagc (Productivity, 19993, \vliicli was developed by
Arno Kocli of Bloni Consultancy to meet liis clients
need
for a
simple and flexible approach to O E E tracking. Tl ie O E E Toolkit
is an easy-to-use application for capturing O E E data a nd creating
a
wide range of reports from it. Tlie nianrial that comes with tlie
software teaches a people-centered approach to O E E measure-
m ent and reporting
lie overall eq tiipinen t effectiveness measure is simple an d uni-
versal. It is used to measure and i~iiprove quipm ent conditions
in companies all over tlie world. We hope this book will tell you
wliat you need to know to rnake your participation and use of
OEE active and personally rewarding.
cknowledgments
T h e development of O E E for Operators has been a team effort,
and we greatly app rec iate tlie eoritribution of everyone involved.
The book was motivated by tlie approach to OEE developed by
Arno Kocli of Blo~riCo nsu lta~ icv nd further s~ipportecl y
Itis
O E E 7bolkit so ft w re package. co n te n t aclvisors included Jolin
Jac into of Am tes an d Bob Strout of Lemforder C o. , as well as
Productivity consu ltant Jolin Mon aco a nd
?PA4
Report editor in
chief Barry Sliulak.
Lorraine h4illard of Productivity managed tlie prepress produc-
tion and nianu facturing , with editorial ;~ssistance rom Pa uline
Sullivan. Graphic illustrations were created by Guy Roster
and Lee Sm ith , with cartoon illuslrations by G uy 130ster ;ind
I-lannali Uonner. Cover composition was by Mark Weinstein
of
Produciivity, wit11 cover ill~~slrationy Gary Ragaglia of
Tlie Vision Group. Page composition was done by
William
1 1.
Brunson Typography Services.
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P U B L I S H E R S
M E S S A G E
Finally the Product iv ih staff wishes to acknowledge the good
work of the many people who are in the process of implement-
ing Total Productive Mainte nanc e a nd using
OEE
in their own
organizations.
We
welco me your feedback abo ut this book as
well as input about
1 1 ~
e can continue to serve your iruprove-
ment efforts.
Steven
tt
resident
Karen Jone s
roductivity
evelopnzent
Team
x v
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The Purpose of This ook
O E E for Operators was written to give you the infonrlution you need
K e y Po n
fo participate in using the overall equipment ef ec ti~ wms OEE)
measure in your workplace. You are a valued m em be r of your com-
p a y s team; your kno\vleclge, support, ancl participation are essen-
tial to the success of any major effort
in
your organization.
T h e paragraph you have just read explains the author s purpose
in writing this book. It also explains why your company may wish
you to read tliis book. But why are you reading this book? This
question
is
evcn more important. What you get out of this book
largely depends o n your purpose in reading it.
You may be reading this book because your team leader or man-
ager asked you to do so. O r you may be reading
l
because you
think it will provide information that will help you in your work.
By the time you finish Ch ap te r 1, you will have a better idea O
how the information in this book can help you ancl your compa-
ny measure equipment-related losses and plan how to improve
equip ment effectiveness.
I L X G R O Y U
W hat This ook Is ased
On
This book is about an approach for measuring equipment-related
losses that limit th e effecti\~eness f manufacturing equipm ent.
Many of the ~netliods iscussed here were originally developed
at conipanies working with the Japan Institute of Plant
Maintenance, a pioneer
in
the ap p r o d i known as Total
Productive M sintenan ce, or
I PM.
Since 1988, Productivity, Inc.
has nladc information about
T P M
approaclies available in the
United States through publications, events, training, and consult-
ing. Today, top conlpanies around the world are implementing
TPA4 to stistain their competitive edge.
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G E T T I N G ST R T E D
igure
1 1.wo
Ways to
Use
This Book
O E E for Operators clraws on a wide variety of Productivity's book
and training resources. Its aim is to present the main co nc c p~ s
and techniques of I IJPI and overall e qu ipm en t effectiveness in
a
sim ple, illustrated form at that is easy to read an d understancl.
Thi s book also co~ iiplc rnen tshe O E E ofkit sofhvare package as
a way to build a shared ~tnclerstanding mong workteam mcmbcrs
before they begin using O E E .
Two
Ways to
se This Book
T h e re are at least hvo ways to use this book:
I.
s
the reading inaterial for a learning group or stttdy group process
wit in
your company.
2. For learning on your own.
Your cornpany may want to hold a series of learning group discus-
sions based on this book. Managers may assign the book for back-
grou nd reacling wh en the co m pany uses the O E E Toolkit sofhvare
package. O r, you m ay read this book for inclividual lea rnin g with-
ou t forn3al gro up discussion.
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G E T T I N G S T R T E D
How to Get the M ost Out of Your Reading
Becoming Familiar with This Book as a Whole
T h e r e a r e
a
few steps you ca n follow to m ake it easier to absorb
h e nformat ion in th is book. Take as mu ch t ime as you need to
be co m e familiar with the material . First, ge t a big picture view
of the book by do ing th e following:
I. Scan the Contents (pages
v
tlirottgli 141) to see liow
OEE
[or
Operators is arranged.
nil 0 S I P P
2.
Read the rcst of this section for an oven,iew of the book's con tents.
3 Flip through the book to get a feel for it style, flow, an d design.
Notice liow the cliaptcrs are structured and glance at the pictures.
Becoming Familiar with Each Chapter
After you l ~ w e sense of th e s t ructure of OEE for O perc ~tors , re-
pare yourself to s tudy o n e chapte r a t a t ime. For ea ch c hapter , we
suggest you foiiow these s teps to ge t h e mosl o ut oFyour reading:
Read the Cllapter Otervieic on tlie first page to see where the
chapter is going.
n w
t o s t p s
2.
Ylip through the cha pte r, looking at the way it is laid ou t. Notice tlie
bold headings and the key points flagged in the margins.
3.
Now read tlie chapter. How long this takes depends on nhat you
already know about the content, and what you are trying to get out of
your reading. Enhance your reading by doing tlie follotvitrg:
Use the niargin assis15 lo help you follow tile flow of inforrnation
If the book s your own , use
a
liighligltter to mark key inforrnation
and answers to your questions about the material. If the book is not
yoiir own, take notes on
a
separate piece of paper.
Ansner the ' M e Five questions in the text. These will lielp
you absorb tlie in fo r~ n at io ~ ~y reflecting on how you migltt apply
it at work.
4.
Read tlie Chapter Surnmar). to confirm what you have learned.
I f
you don't remember some thing
in
ih e suliimary, find that section in
the chapter and review it.
5 l'inally, read tlie Rcflcctior~s qwstio ns at the end of tile cl~apt er .
Think about tliese questions and write down your ansum. I+id
an
expcricnced person to ask if you find
a
topic conft~sirtg.
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G E T T I N G S T A R T E D
igure 1.2.Giving
Your Brain a
Framework
for
Learning
ow a Reading Strategy Works
\Vhen rcadine a book.
aeonle tliink tliev siiould start with
.
tlie first word and read straight tlirougli until tlie end. niis is not
usually tlie best way to learn from a book. l lie steps de~ cr ib cr l n
page
s v
are a strategy for making your reading easier, more fun,
and more effective.
Reading strategy is based on two simple points about the way
people learn. The first point is thk: It is difficult for your bruin to
absorb rlew infonilcrtio~l f it does not h a ~ v str~ictureo place it
in. A an analog);, imagine trying to build a house \vitlioul first
putting up a framework.
Like Bnilding
a
frame for
a
liouse, you can give your brain a
framework for the new inforru;~tion n tlie book by getting an
overview of the contents and then flipping tlirough the materials.
Withi11 e:~clich;ipter, you repeat this process on a sniallcr scale
by reading the overview, key points, and headings before reading
the test.
The se co ~i tl oint abo ut learning is this. It is
I
lot easier to lean1 if
you take in the infonncition one layer a t a time, instead of frying t
ubsorh it a l l at once . It s like finishing the nails of liouse: First
you lay do\vii a coat of primer. \\ lien it s dry, you apply a coat of
paint, and later final finish coat.
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G T T I N G S T A R T E D
Using
th
Margin Assists
s
you ve notice d
by
now, this book uses sma ll images callecl mar
girt assists to help you follow the iriforniation in each chapter.
?
her e a re six types of margin assists:
Background
Information
Sets the stage for what comes nest
Key Term
Defines important words
Key Point
I-liglllights irnporiant ideas to remember
Example
W p s you understand the key points
New Tool
Helps you record data or apply
learning
How to St ep s
Indicates the sequence for
improvement action
Overview of the Contents
Getting Started pages xv-xx)
Th is is the section you re reading now. It es pl ai ~i she purpose of
OEE
for
Operators an d how it was w ritten. T h e n it shares tips for
getting th e mo st ou t of your rea ding. Finally, it presents this
overview of eac h cha pter.
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G E T T I N G ST RTED
Chapter 1 About TPM and OEE pages 1-8)
Cha pt er 1 introduces and defines Total I roductite i\ilaintenance
and overall equipme n1 effecti\seness. It explains reasons ivhv O E E
is an important measure to track and describes the role of the
shopfloor teani in collecting and using OEE clata.
Chapter 2 . Understanding Equipment-Related Losses
pages 9-23)
Ch apt er describcs the three eleme nts of O E E and links them to
the main types of losses that lower equipment effectiveness.
Chapter 3. Measuring OEE pages 25 -38 )
Chapter
3
offers guidance in measuring overall equipnient effec-
tiveness, incl~rding
ollecting
and processing data arid using the
resulting information on t he shop floor. It tells abou t defining
what data to lucasure for the O E E calculation, doing the calcula-
tion, and storing the data so you can report the information in
cliffcrent ways.
Chapter
4
Improving OEE pages 39-56)
Chapter 4 covers essential approaches for improving overall
eq uipm en t effectiveness. Topics inc lud e Why analysis, the
a u t o ~ ~ o ~ n o u saintenance and focused im provement pillars of
TPR4
specific approac lies for setup and defect losses, and the
advanced P-M analysis approach for chronic problems.
Chapter 5 Reflections and Conclusions pages 57-63)
Chapter
5
presents reflections on and c oncl~ ision so this book.
It also describes opportunities and specific resources for further
learning about O E E , TPh.1, atid related tecliniq~ies.
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I
C H P T E R
What
s
TPM
Overall ecjuipment effectiveness (O EE) is a key measurement in
the i n~ prov em en t pproach called Total Productive biaintenance
(TP M). Before you begin learning abou t OE E , it is useful to
understand a little bit about TP M .
TPM is a companywide approach for improving the effectiveness
e y o i n t
arzd longevity of machines. It is key to lean manufactitring because
it attacks niaior wastes in operations. Developed origi-
nally to hc lp a supplier m eet the stringent recjuirements of the
Toyota Production System, T P M is used today in companies
around the world to improve the capability of their equipment.
TPhiJ
has number of waste-reduction goals, including equipment
restoration and muintencrnce of standurd operating conditions. TPM
methods also improse equipment systerns, operating procedures, und
nzainterzance and design processes to asoid f it ur e problems.
T h e main strategies used in T P M are often referred to as pillars
that support the smooth opera tion of the plant. F igure 1-1 sum-
marizes the activities in eight basic pillars of TPM.
T h e overall eq uip ment cffectiveness measure is important to
many of the TP M pillars, but is probably most important to tlie
first four pillars in the figure. This is because these pillars can
directly influence O E E througli daily operations, ma intenance,
or improvenient activities.
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A B O U T T P M A N D
O E E
h t o n o r n o ~ ~ s
maintenance
Qu;tlity ma intena nce
Figure 1 1.
asic illars of TPM
ctivities
Operator in vol\w ~re nt n regular
cleaning, inspeclion, lulxication,
an d learning about equip me nt to
mainlain basic conditions and spot
early signs of trouble.
Aclitities to m anage pro duct
qud itl; by nraintaining optirnal
operating cortditions.
h l e th o t l~o h r t e n the lead Lime
for getting n e n cquipmenl o ~ ll in c
and making tlcfect-frec l rotlucts.
Safe 9 training; integration of
sa fey checks, visual controls,
and mistake-proofing devices
in daily work.
planned program for cleveloping
crnployce skills and kno\\*ledge o
srtpport TPh4 in rpl en ~e nlt on.
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C H A P T E R
..
. ...
:
K e y
T e r m
T e r m s
K e y
Po i n r
What Is
OEE
and Why Is
t
Important
Mm ufacturing companies are in business to make money, an d
they make m oney by add ing value to materials to mak e products
the customers want.
Most companies use rnacliines to acid valtic to tile prodrtcts.
To add value effectively, it is important to rtm the machines
effectively, with as little waste as possible. O ~ ~ e r a l lquipment
effectiveltess is a nreasurerr~ent sed in TP to indicate Itow effec-
tively ~na clt ine s re running.
W ha t do we m ean by overall equ ipm enl effecti~~encss?lilany
people are familiar witli the idea of efficiency, tvliich ~ ~ s u a l l y
reflects the cjuantity of parts
a
inachine or a person can p rod ~i ce
in a cerlain time. OEIS is rlifferent from efficiency in several ways.
Quantity Over ime Is Only Part of OEE
mac hine's overall effectiveness inclucles mo re than h e quantity
of parts i t can prod uce in a shift. W he n Jve m easure overall equip-
m ent effectiveness, we a cc on nt for efficiency as oilc factor:
krfomicriw?:a co~nparison f the actuai outpttl with what llle
inachine should be producing
in
the same time.
In addition to performance, however,
OEE
incl t~des\vo
other factors:
i\,.ailahility: a comparison of the potential operating time and the
time in which the machine is actually making products.
Qualit).: a coinparimn of the number of products made and the
nurnber of protllicts that meet the customer's spccificatioiis.
When you nrultiply perfortnance, a~,cdability, nd qualify, you get
the overall equipment effectiveness, which is expressed us ct percent-
cige. OEE gives a co m ple te pictu re of the machine's health -
riot jusl how fast i t can niake parts, but how ~ u u c hhe potential
ou tpu t was limited d u e to lost availability or poor quality (see
Figure 1-2). In Chapter 2 we will look more closely at these
Lhree elemen ts and lio\v they work together.
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A B O U T
TP
A N D
O E E
Effectiveness F ocu ses on t he Equipment
Not th e Person
Unlike s o ~ n e ses of tlie efficiency measure, O E E monitors the
machin e or process that adds the value, not
tlie
operator s produc-
tivity. tV11er1 we nmisure O E E , we look cit floiv well the equip ment
K ~ o i n t
or process is working.
The Purpose
o
Measurement s Improvement
Measuring O E E is not an approach for criticizing people. It is
strictly about improving the equ ipm ent or process. Used is a17
impartial daily sttapshot of equipment conditions, O E E prornotes
openness
n
inform tion sharing crnd c~ no-hlarne cipproach in licin-
dlirzg eqni/1rner7t-reluted issues.
Th ese key differences Iiighlight tlie importance of O E E as a bal-
anced measure that I~elpsupport improvement and profitability.
T A K E F I V E
Take five m inutes to think about these questions and t o write
down your answers:
Does your company currently measure each machine s efficiency?
Its available running time? Its quality rate?
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C H A P T E R
Rgure
1 3 Collecting Data and Turning
it into
Information
The Role of the Shopfloor Team in Using
O
This hook is written for so u, the sfiofifloor einiiloyee, because vou
h a w a big stake in the lzecrfth o/tlt; production kpip in ent.
operators, you manage the ecluipment that adds value to the procl-
uci. Wh en the ni;tchines break down, run too slowly, or produce
defects, you have to \vork longer ancl harder to rnake t ~ por tlie
problems. 'Tlie pressure these problems creates is a good i~icentive
to measure diem ancl start improving them.
What more, your daily work ivit11 the machines puts you in the best
position to inonitor their probleins. You know how long a ~iiacliine
is shut down for setup, or w l ~ e ~ iinor stoppages get in tlie way of
Iiigh-speed operation, or when you have to run slower to avoid
defects. In many cases, yokt already track the data that will be used
to calculate the overall equ ipm ent effectiveness.
Sharing in/orination on the plant floor through gruphs and discus-
sion is the heort of TPiV (see Figure I-?). '['lie O E E information
isn't rtseful when it is locked away in an office. 'The best approach
for applying O E E gives operators a leading role in ga ther ing daily
data, coriverts the data into useful inforniation, and applies the
information in
the workplace to support improvement.
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A B O U T T P M A N O E E
O ve rd l e qui pm en t cffcctivcncss ( O E E ) is a key mcasurc-
m e n t in h e irnprovcmcnt approach called Total Productive
Main tenance
(TPM).
TPM
is
a
com panyw ide approa ch for improving tlie effectivc-
liess and longevity of niacliincs .
TPM
has
a
nu m be r of waste-reduction goals, inclu din g cquip-
m en t restoration arid main tenan ce of standard ope rating con-
ditions.
TPM
rncl l iods also irnprove equipment systcms,
operating proc cd t~r cs, nd ma intena nce ancl design processes
to avoid f ~ ~ t u r er o b l c ~ m .
Overall cquiprncnt effectiveness is a rne:~surernent used in
TPM
to ilidicate how effectively nia chinc s a re runnin g.
Overall equipment effectiveness is not the same as cfficiency,
wliich usually me an s liow many parts a m ac liin c or a person
can produce in a certain time. O E E is different in se ~ ~ e m la p .
Quuntity o iw tirile is only one port of O EE .
macliine s overall effectiveness inclutlcs more than the
quantity of parts it can protluce in
a
shift. O E E inelucles
efficiency as one factor-perforttiatice-but also hvo o ther
fa ct or s- av ni la bi i and quality. Wlierr you intiltiply perfor-
mance , availability, and qttality, you get the overall cquip-
tnen t effectiveness, wliicli is cxpresscd as a
percentage.
Effcctitmess foctrses on the ecpiprrrent or process, riot
tlie person.
W hen we mcasure OEl:, we pay attention to how well
tlie cq ~~ ipn ien tr process is perfonnirig, not tlic operator s
productivity.
Tile purpose of rneosurement is irrtprovemcnt.
Used as an impartial dally snapshot of tlie cquipmetit, OEE
promotes openness
in
infornialio~i l~ariiig nd a no-blame
approach in handling ccpipment-related isstlcs.
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O E E F O R
O P E R A T O R S
* T h i s book 1s written for you, [lie shop floor em plo ye e,
because you have a big stake
i n
tlie liealtlt of tlie production
equipment.
What s more, your daily work with the macliincs
puts you
in
thc besl position to monitor lheir problems.
Sharing information on the plant floor tlirougli graplis and
discussion is tlie heart of
TPM
R E F L E T I O N S
Now that you have completed this chapter, take five minutes
to think about these questions and to write down your
answers:
What did you learn from reading this chapter that stands
out as particularly useful or interesting?
Do you have any questions about the topics presented in
this chapter? If so, what are they?
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C H A P T E R
igure
2 1.
deal and Actual ffectiveness
Losses Reduce Overall quipment
ffectiveness
W ha t makes mac hine s less effective than they could be? Tli e
ideal, totally effective machine could run all the time (or when-
ever needed). It could ma inta in its maximum or standard speed
all the time. t \ V O L ~ ever rliake defective products.
But most tiiachincs aren t ideal. Th ey ca nno t run continuously.
The y cann ot maintain maxitnum speed wit ho i~ t roblems. And
they make defects.
Th ese p ro b le m are faniiliar forms of wask-they don t add value
to the products. T he y reducc a machine s effectiveness, as mea-
sured by the O E E . The conditions th at cause these machine prob-
p m
ferns are called equipnlent-related losses. Uilderstandirig the differ-
ent types of equipment-related losses will give you a framework
for applying O E E and participating in improvem ent activities lo
reduce the losses.
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U h D E R S T A l . O I Y G
E Q L I P h l E N T
R E L A T E D
L O S S E S
.
T h e equipment-related losses that are important for O E E are
linked to the three basic elem ents inertsured in O E E : availability,
performance, and quality. Traditional TPM approaches track
XI
T e l n
Six Major Losscs :
hailability Perforrnrince:
Quality:
Dow ntime losses Speed losses Defect losses
1%1
u m
Minor
stoppages Scrap and rework
Selup tinic
Reduced
operaling speed Starlnp loss
Alth o~tgli om e companies link i~icliviclualosses to different O E E
categories, or add otlier losses that are especially significant for
their operations, this basic framework is a t~ se ful tarting point
for many comp anies. Figcue
2 2
on tlie nest page gives a visual
image of tlie
9
in which these losses reduce the overall equip-
me nt effecti\~eness f a ma chine.
T AKE F I V E
Take f ive minutes t o think about this quest ion and to w rite
down your answ er:
What are some of the situa tions that keep your machines from
running at an ideal level of effectiveness?
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C H A P T E R
OEE
=
B A
x
D/C
x
F/E
x
1
~v ailh bil i ty ~erfdrmance Quality
Figure 2 2.
The
OEE Elements and the Equipment-Related Losses
Visualizing OEE and the Losses
Figure 2-2 makes it easy to see itow
OEE is
derivcd from the three
elerrients, expressed
as
fractions. Each pair of bars stands for on e of
the fractioris-availabiliQ (BIA), performa nce
(DIC),
an d cpality
(FIE). The fractions arc often multiplied
y 100
to trrrn them into
percentages or rates.
Availability
Bars
A
a d represent availability. Unsclieduled time shortens
the total
operating
time,* leaving ne t operating time (A). But the
Compan ies eou i i t
l l i i s
t i ~ r i e
ll
different
ways
b u t
for
l l i s
discusniori , we sd,tract t l ~ e re
periods from t l lc t u t d u p c r at i ng l i m e .
2
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U N U E H S T A N D i h G E Q U I P h l E h T - R E L A T E D
LOSS S
~nacl t ines frequently down dur ing som e of that time, usually du e
to breakdo\vns and se tup. Subtracting that downtinie leaves the
running time (B) in which the machine is making product.
l a n p i e
erformance
Bars
C
and D represent perform;tnce. During the running time,
tlie machin e c o~ tl d roduce a target o ui pi t quantity
(C)
if it ran at
its clesig~led peed the whole time . But losses such as minor stop-
pages arid reduced operating speed lower tlic actual outp ut (D).
acluul orrfprrt 15,000 pmtsLTxur~tple:
=
.60 prfinrrurrce
x
100
=
60 )
target otr fpu f 20,000 purls
t n a n o l e
Quality
Bars E and 1 represent quality. Of t x actual output (E), most
of the p roduct is good outpu t (F). But usually some ou tpu t falls
short of the specified quality and must be scrapped or reworked.
Scrap is often produced during machine startup as well, lowering
the yield from the inaterials.
good ou tp ~t t 11,760 parts
Exria~ple: =
. 18
qualify
x
I00 = 98 )
ucl~rrrl utput
12,000
parts
Figure
2-2
shows how losses to availab ilih, perfont~unce, n d
quality corrzpourzd to reduce the amount ofgood output CI n~uchine
H ~
o nt
cun produce during a sh i f t You can improve quality to raise tlie
quantity of good output a little bit-but the total quantity won t
rise draniatically unless you also improve both
performance
and
availability.
The fortnula at tlie bottoni of Figrtre 2 2 shows how lo ~nultiply
the three elements to gct the OE E .
T h e rest of this chapter will look more closely a1 the losses associ-
ated with these elcmcnts.
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e y P o i a t
Key o l n l
C H A P T E R 2
Figure 2 3 Downtime Losses Failures and
Setup
Availability Downtime Losses
ailures
Avuifubility is reduced by equipzrrent fuilures, tvliicli are a com mon
occurrence in many plants. RiIacliines used for prorluction gener-
ally have lots of moving parks and vari o~ts ubsyste~iisn wliicli
hiings ca n go wrong. Il lien they do, the n iacl iine breaks down-
and stays down ~ ~ n t i lepairs are completed.
Many oftl ie causes of ri~uclrine i~ ilu reive wurrting signs before
the rriuclri~~ectuully Irreuks. In Cliapter
4
1ve will look at liow
autonomous maintenance activities can help spot early trouble
signs in time to prevent major breakdowns.
Setup
Time
rh~uilubi lity s also reduced by the time it tulies to set up the
tnuchine for u different product. hi addition to cliarigirig tlic value-
adding parts, a cliangcover requires some preparation or make-
ready.
t
may ~ nvolve leaning and making adjuskmcnts to tile
machine to get stable quality in the nest product. Too oftcn, it
also in~ol ve s unn ing arou nd to find tools, parts, or people. \lJe
will considcr an approach Tor retlucing sct~tpime in Cliapter
4
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Figure 2 4. Downtime Losses Cutting
Tool
Loss nd Startup Loss
Other Losses to Availability
Failures and se tup losses were the original losses counted
as
clow~itime hat recluces availability. Som e cornpanies also track
other losses as dow ntime depe nding
11
d i a t losses they are
trying to improve. Cutting tool loss startup loss and time not
schednled for production are three other losses tracked as down-
time a t some plants.
utting Tool
Loss
K e y P o i n t
Rreukuge of cutting tools during production cuuses unpluz~ned
downtinze while the tool is replaced. Altliougli this is teclinically a
subset of failure ancl repair losscs som e companies track it sepa-
rately because of the potential for injury ancl product defects as
well as the cost of tool replacement. Planned maintenance and
autonoriioi~smainienance activities help reduce these losses.
tartup
Loss
Startup loss is traditionally in c l ~ ~ d e ds a defect loss since its
essenie is the prod~tct ion f defective products during
startup.
I-lowever sturk~poss involves lost time until good pod~rction~cune
K Y p o i n t
stubilized so
t
is logical to st~b tractt From available time as well.
5
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C H A P T E R
Figure 2 5 Downtime Losses Unscheduied Time
Time ot Scheduled for Production
In some con~p anie s,when rnacl1ines are stopped for meetings,
preventive maintenance, or breaks, the time is considered
not schecluled an d is no t coun ted in the availability rate (see
Figure 2-5). Ot he r c o~ np an ie s ecognize that even necessary
activities like tliesc redu ce the available prodnction time. They
may clccide to cons ider time not scheduled as a dow ntime
loss that lowers the availabiliky rate.
Counting tmscheduled time as
I
loss cut1 erzcotrrage creative ideas
e y o i n t
for reducing the loss-without eliminnting the uctivify. For esam -
ple, after measuring the produckion time lost from scheduled
breaks, employees at one company developed a plan to alternate
their breaks and briefly cover each other's stations.
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U N D E R S T A N D I N G
E Q U I P M E N T . R E L A T E 0
L O S S E S
Likewise some companies co un t of f l ine t ime for preveniive
m ain ten an ce as do\vntirrie. Again the p o in t s to rcduce the t i rue
loss n o t to el im ina te the activity.
T K E
F I V E
Take five minutes to th ink about these qu est ions and to w rite
down your answers:
How much time is lost each month due to failures and repairs in
your area?
How much time is spent each month on setup and make.ready in
your area?
Would you count other time losses for OEE purposes? Why or
why not?
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C H A P T E R
Performance Speed Losses
Reduced perating Speed
Mac hines often
nrn
a t speeds slo~ver han they were designed to
nm One reason for slower operation is unstable product quality
at the designed speed. In other cases, people don t realize h a t the
equip men t is designed to run laster. We tvill look in Cliaptcr at
how to determine speed for the OE E ealculalion.
inor Stoppages
Minor stoppages are events tha t interrupt the production flow without
actually making the rnaclrine fail. I ltey often occur oil autoruated
lines, for example witen product components snag on the conveyor
(see Figure 2-6).
Minor stoppages can make it impossible to run autom ated equip-
men t without someo ne to monitor it. Tllese stoppages may seem
like p e t p annoyances, but they add u p to big losses a t many {da nk .
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U N D E R S T A N D I N G E Q U I P M E N T R E L A T E D LOSS S
h h o r stoppages last only a few seconds, so we don t try to log the
time lost. Instead. we in c lt ~ d elieni in r~erformanceosses that
redu ce t he produ ct ou tpu t. We will look at approaches for recluc-
ing speed losses in Chapter 4.
T K E F I V E
Take five minu tes to think about these questions and to write
down your answers:
Do you know the designed speed of the machines in your area?
Do minor stoppages happen in your area? What causes them?
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C H A P T E R
2
igure 2 7. Defect Losses:
Scrap
Rework,
and Startup
Loss
Quality: efect Losses
crap
and
Rework
I'roducts that do not m ee t customer specifications are a familiar
loss. Clearly, scrap that canno t be reused is a waste of m;~terials .
Even w hen pro dt~c ts an be reworked, the effort spent to process
them hvice is a waste.
tartup
Loss
Many machines take time to reach the right operatiltg conditions at
e y
startup. n the n~eatztime, hey
nay
turn out defictive products
while operators test for stab le output. Som e com panies simply
incl ude this sta rtup loss in scrap and rework; others single it out
as a specific loss to track*
r\s nreiiticrncd in th e section or1 do w ~l ir ti eosscs, same co rti pn ier also sir&
out
the
slnrlup period bcforc tlic i r s t good prc~rliict s I special
vp
of do\vntime to h c k .
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U N D E R S T A N D I N G E Q U I P M E N T R E L A T E D L O S S E S
Quality ~x ob le m s appen when the op tin ~u m onditions do
not
exist at the m om ent \d ie n a person or m ac hine works on the
product In Chapter 4 we will look at a meihocl for preventing
defects
by
chec king and controlling the necessary conditions
T K E
F I V E
Take five minute s t o think about these questions and to write
down your answers:
What is the defect rate for machines
n
your area? Do you think
this can be reduced?
Are startup losses a significant problem in your area?
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O E E F O R
O P E R A T O R S
T h e ideal, totally effective mach ine would run all the time (or
n.henever needed), at maximum or standard speed, with no
quality problems. But most machines can't meet tlicse ideal
conditions. They can't run continuo~~slyr at maximum
speed; they experience minor stoppages, an d tlicy m ake clefec-
tive parts.
T l ~e se roblen~seduce a inachine's effectiveness, as nieasured
by the O E E . Tl'lic conditions that cause these probleins are
called eqrtipmerit-related losses. Linked to the three basic ele-
mcnls of OE E , they include the traditional Six Major Losses :
AvailabiIity: 1'crfonn:rnce: Q.;ility:
Downtime losses Spceci losses Defect loss s
Failures
Minor stoppages
Scrap
and
i work
Setup time Reduced operatir~gpeed t;~rtuposs
itlt lio t~ gh ome c ompanies link individual losses to different
O E E categories, or add otlier losses illat are especially signif-
icant for their operations, this basic framework is
a
i~scful
starting point.
O E E is derived from the tliree elements , esprcssccl as fractioris.
'i'l~efractions arc often multiplied by 100 to turn tlicni into per-
centage s or rates. Losses to tl m c tliree elements rcdtice tltc
arriount of good outp ut
a
ma chine can produce during a shift.
Do wntime losses arfcct availability. Eailtires and setup time are
com nion losses tracked.
So~ii e ompanies ;dso track otlier losscs as downtime, depend-
ing on what tlicy arc trying to intprove. Cutting tool l o ~ s ,
startup loss, and time not scheduled for production
are
three
other losses son~ etiniesracked as downtime.
Speed losses affect performance. h h o r stoppages and opera-
tion at reduced spced are often measured as speed losses.
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U N D E R S T A N D I N G
E Q U I P M E N T - R E L A T E D L O S S E S
Defect losses affcct quality. The y inclu de scrap a nd rework whcn
Ions.
roducts do no t me et custome r specific.
I
Also many macllines turn out dclcctive products during
startup while operators test for stable oulpttt. Some conipa.
nics i n c l ~ ~ d ehis loss in scrap and rc\vork; others single i t
ou t as a specific loss to track.
R E F L E T I O N S
Now that you have completed this chapter, take five m inutes
to think about these questions and to write down your
answers:
What did you learn from reading this chapter tha t stands
out as particularly useful or interesting?
Do you have any ques tions about the topics presented in
this chapter? If so, what are they?
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C H A P T E R
A~Icasuring verall equ ipme nt effccti\~enesss an important way
to monitor which losses are reducing the effecti\~eness f your
macliines. By tracking O E E 077 a regular basis, y u car7 spot pat-
o i n t
terns a nd influences tha t cause problenrs for production equipment.
Furthennore, niecrsuring O E E allows you to see the results of your
efforts to help tltc rnaclrines nm better. Th is chapter offers guidance
in measuring overall equ ipm ent effectiveness, including collecting
and processing O E E d a b arid reporting O E E results.
losing the Feedback
Loop
T h e process of measuring and applying O E E data should involve
the people who use the machines.
s
operators, you are more
familiar than otlier people with the equipment you operate, and
you have a slake in help ing it run well. Therefore it's logical for
you to take part in collectirig tlie data for calculating OEIS.
just as irrzportant as being involved in clata collectiotl is receiving
e y
p o i n t
feedback on O E E results. An O f X chart cannot promote improve-
ment if it doesn't get back to the shop floor.
OEE
is living infor-
mation for improving equipm ent effective~iess. t shoulcl not be
buried away in an office.
ollecting OEE Data
efiningWhat to Measure
Before you can begin appl)>ingOEE, you need to decide what
m y p o i o
nrachine and pr od ~ ~c tatu you will rneasure for the calcu fatio t~.
V i e Basic itenis you will measure a re the losses that reduce avail-
ability, perforninncc, an d quality. Tliese will vary from plant to
piant, b ~ ~ the Six h4aior Losses described in Cliapter
2
give a
good framework to start from.
Downtime Losses
Do~vntimeosses (lost ai,c~ilclbility) rre rrwcrsured in units of tirnc
K e y P o o l
(Figure -1). The y include
failure and repair tirnc
setup and adiustmenk timu
other time losses tli;it reduce availabililp
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M E S U R I N G
O E E
:ure
3 1. ailure
and
Setup
Losses re Measured as Time Losses
Failure and repair t ime i n c l ~ ~ d c sll of h e downtime until the
rn:tclhe makes the n st good product. Some plants 1i1mpall
breakdotvns into on e category; oth er plants may create several
categories to disti~tgu ish et\veen different hp cs or causes of
rnachinc failures. T h e main t l h g is to standardize y o w approach
so everyone can measure a failure event the same way.
Setup and ad iustm cnt tifne includes the time between the last
good piece of procluct
A
and the first good piece of procluct
B
Ot he r time losses inc lud e startup losses-similar to setup time
losses-and any no ns cl ted ~~ le dime the team chooses to subtract
from the available time.
T K E
F I V E
Take five minutes t o think a bout th es e que stions and to write
down your answers:
What types of information about your machine s operation do you
currently track?
What types of downtime losses do you think your work area
would track for
OEE?
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C H A P T E R
THE DES IGN GUY
SAID THIS WOULD RUN
1 000
PIECES PE R MINUTE.
BUT WE CAN ONLY RUN 827
M A T T E R W H A T
Output Reductions
peed
osses
Speed losses (lost perfonncince) are rneclsured in units of product
e y p o i n
outpu t (see Figure
3-2).
You probably already track your ou tp t~ t
quantity. For
OEE,
you look at the difference behveen the actua l
ou tput and the potential output if the riiacliine consistently ran
at the designed speed, or at the standard o pt i~ nu nt peed for
each procl~tct.
Speed losses inc lud e m ino r stoppages as well as reclucecl operat-
ing speccl. A lt li o~ ~g hinor stopp ges are events like mini-
breakdowns, they often occur so frecluently that
t
is not practical
to record the tin& lost during many frequent stoppages. For that
reason, many companies monitor minor stoppages by tracking
the outpu t reduction they cause.
lb
comficlre the ac tua l outbut rate (rnuchine s ~ ~ e e d )ill1 the ou tbut
rate a t ;he designed spee d,'pu have to know & z t he designed&zx
is.
If tl~is peed docs not appear in tiic macltine's docurnentakion,
you will nked to sel
:I
s tar i~ard,uch as the fastest known speed at
wltich the machine can run (tliis may vary for different products).
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M E S U R I N G O E E
ercent
Defect
Rate
Line
Figure
33 Scrap
and Star tup Losses re Measured a s Defective Output Compared
to Total Output
Defect Losses
Defect losses (lost quality) are ulso measured in units of product
K e y
v o n t
output. This time, you are looking at the difference behveen the
total a ct~ tal utput and the output that meets ccustomer specifica-
tions ( sce Figure 3-3).
Defect losses include products that can be reworked as well as
outr ight scrap. i7irst-pass qualih is the goal.
Making Data Collection Simple
T h e purpose of tracking
OEE
is not to rliakc estra paperwork for
operators. Most likely yo11 arc alreztdy collecti~igI lot
of
the data
req~~ireclor the O E E c alcu lation. O ne ivell-clesigiled fonn un
nlake it easy to log th O E E da ta a s i ~ ~ e l ls other dutct you need
to register clurir~g aily production.
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C H P T E R
Figure
3-4
pages 31-32) shotvs a sam ple data collection form. Its
creators used a simple approach for logging time losses by sliading
l a m p i s
the boxes on Side A to indicate where downtinie occurred .
Performance a nd quality data go on Side B.
T K E F I V E
Take five m inutes to think about these qu estions and to write
down your answers
Which type of loss most affects your production equipment?
How would you change your current data co llection forms t o
include
OEE
data?
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M E A S U R I N G O
Lure 3 4 Sampie Data Collection Sheet Side A
Source
A m
ach Blom
Consultancy. User s Guide for OEE
Toolh~t oftware IPmductivity,
999
3
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C H A P T E R
:we 3-4continued). Sample Data Collection Sheet Side 6
SOUICB: Arna Koch.
lom
Consultuncy.
User s
uide
lot
OEE
rootkit
software Productivity,
1999
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M E A S U R I N G O E E
Running time ctual output
Good output
Net operating time Target output ctual outp ut
igure 55
The
OEE Calculation
and
Its
Elements
Processing
OEE
ata
Afier you collect data for OE E , you need to process tlic data to
turn it into useful information. Th is involves doing the c alcula -
tion, and also storing your data in a way that allows you to clraw
different types of idomtation from it.
The OEE alculation
O E E is calct~ latecl y multiplying availability, perforniance, and
qud ity (~nultipliecl y
100
to give a percentage rate).
OEE
rote i\wifubil ity Perfarntanoe x Quulity x
1
Po nt
Let s review the equations for tlte individual elcrnents of O E E .
Kunnirrg tirile
A~~ui luhi l ih
Net ctperutirrg tirne
The running time is the net operating tirne minus the downtime
losses you rlccide to measure.
Actual output
Perforn~c~rtce
Torget ozrtput
For the O E E calculation, the target output is the quantity the
machine woulcl produce if it operated at its designed speed
during the running time (see Figure 3-5 .
Qt~ ati ty Good output
Actuul output
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C H P T E R
Storing O ata
O E E is mos1 valuable when p o ~ ~ollect data and do the calcula-
Lion o n a regular basis. Tracking O E E at set intervals over time
allows you to see patterns that give ciues for in~ pro ve me nt.
t
is irnport t~to
h ve
system in pluce to store your O E E data.
ri l P a ~ n t
Ma nua l cha rting of the basic rates is a good place to start, bu t it
limits the information you can pull out of the data. Sofhvare can
be a helpftd tool for automating the calculation and storing the
data for use in scvcral t ~ ~ p e sfgrap l~ssee Figure
3-6).
T K E F I V E
Take five minutes to think ab out this question and t o write
down your answer:
What kind of data storage system would you want to use for your
O measurements?
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M E A S U R I N G O E E
Source
Sample data entered
in
OEE
i olkit
software application
Am0
Koch
Blom
Consullancy:
PIoducthify
19991
Reporting
OEE
Results
Sha ring O E E information is critical for reducing equipm ent-
related losses. Operators-the peo ple wh o are closest to the
ccp ipm ent-n eed to be aware of
OEE
results. liep orting OEE
information on cl ia r t ~n the \vorkplace is a key to improving
futu re results.
T h e graph in Figure
3 6
s h o w
a
typical machine s O E E char t for
one sliift. By tracking this data over time, vou can see tlie OEE
trends for th e m ac hine , as show n in F igur;
3 7.
The few pieces of da ta you collect to track OEE con give a lot of
other
inform tion
ab ou t the inuchine, unswering sttch questions a s
Arc we improving over
How arc we utilizing tlie
time? equipment?
What are the biggest down-
What
is
our mean time
time problem s? behveen failures, failure
When did an incident
rate arid frequency, and
occur? mean time
to
repair?
1-low was quality over the
last month?
Figures
3-8
and
3-9
show samp le reports from O E E data.
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C H A P T E R
Source: Sample data entered in
OEE Toolhi
software appilcation
( A m
Koch. Blom Consultancy;
Pioducfivity 1999 .
Figure
3 9. tilization Chart
SOUICBample data entered in
OEE Toomil
software application
A m
Kocll. Blom Coosultancy;
Pmd~ctivity.1999 .
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M E A S U R I N G O
Tracking O E E helps you spot patterns and influences of equip-
ment problenis 2nd allows you to see thc results of your
iniprovcment efforts.
Tlic process of measuring and applying OEE data should
involve tlie people who use tlie
machines. Operators
should
also receive feedback on OEE results.
Before you bcgin applying O E E , you n eed to decide what lo
measure
for tlie calculation. T h e basic i t e m you will measure
are the losses that reduce availability, perform ance, and qual-
ity. Tbcse will vary from plant to plant, but tlie Six Major
Losses provide
a
good starting Franietvork.
Do wn tim e losses lost availability) are measured in units of
time. They includc
hilurc and repair time
setup and adjustment time
other time losses that reduce availability
Speed losses lost performance) are measured in units of prod-
uct output.
You
will look at the difference behvcen the achial
output and the potential output if tlie machine consistently
mn at the designed spced or the st;~nclardoptimu m speed for
each product.
Defect losses lost quality) arc also nieatu red in units of prod-
uct o utput. H ere you itre looking at Llic difference betwecn h e
total actual outp ut and thc ou tput that meets cusiomcr spcci-
ficat~ons.
The purpose of tracking OEE is not to 1ii;lke extra
A
\vcll-designed form can make it easy to log the OEE data as
wcll as other da ta you rieed to register durin g daily production.
A f t e r you collect data for O E E , you need to process the data
to turn it into useful information. This involves cloing the cal-
culatio n, and also storing your data in a way that allows you to
draw diffcrcnt types of information from it.
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O E E F O R O P E R A T O R S
O E E is calcu lated by n~u ltiply ing vailability, performance,
and quality tnuitiplied by
100
to gct a percentage rate).
OEE
rate rivuilability
x
Perfonnunce
x
Ql~ul i l y
x 1
Running tirile
ri~~uilubil i ty
Net operrrtitig tirne
Actual output
Perforn~ance
Target oufptrl
Good unlptrt
Q ~ r a l i h
Actual oritplrt
Tracking
OEE
at set intervals over time allows you to scc pat-
terns that give clues
for
improvement.
t is important to have
a
system in place to store your OEE
data. Software can be helpful for autorriating the calculation
and storing the data for use in reports.
Reporting the results on charts in the workplace is a key to
improving fu t~ ir c esults. T h e few pieces of data you collect
to track O E E can give a lot of other information a bou t the
machine.
R E F L E T I O N S
Now that you have completed this chapter, take five minutes
to think about these questions and to write down your
answers:
What did you learn from reading th is chapter tha t s tands
out as particularly useful or interesting?
Do you have any questions about the topics presented in
this chapter? If so, what are they?
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I
C H A P T E R
igure
41
OEE
Tells
the
Current
State of the Equipment
W
measure O E E to ~i lonitorhe condition of the cquipment-
similar to what a nurse learns about your condition w hen he or
sh e takes a tempera ture or listens io a heartbeat (see Figt~re -1 .
.
By comparing yesterday s or last \vee rs result, we can see whether
tlie condition has improved or becom e worse. s an operator, you
play an important role in
TPM
because you are in the best posi-
tion to monitor mac hine conditions during operation.
e y P o i n t
? fie i~ oi nt f usirlg the O E E meusure is to drive irnprovenient.
W hen you first begin tracking O E E , the rate mag be very low.
This is no1 totally bad, because t means there is a big opp ortu nih
to improve. It is much easier to improve a low OEE rate than a
high one, since people tend to
eliminate
the obvious wastes and
problems at tlie beginning.
Standardization is the first step in improvement. 0 E E is a tool for
standardizing the
way
you measure
effectiveness.
Th is standard-
ized approach provides a baseline that helps you see where to
focus improverneiit efforts.
So me im provem ent mag hap pen just from the awareness that
develops when you start mcasuring
OEE.
Sustuined improve-
tnent, however, requires a dediccited approach, with rrlunugerrtent
support. Thi s cliapter explores several approaches that can hel p
improve OE E.
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i M P R O V l N G O E E
nswer
2. Why did oil leak?- p T h e O-ring was cut.
igure
4 2 5
Why
Analysis
Why
nalysis
I-Iave you ever liad the esperience in \vl1ich someone fixed a machine
problem, but the same problem happened again after a sliort time? In
such cases. it often h ~rns ut that people have been heating the syin p
s
toms of the problem, but not dealing \\it11 its real, root cause.
ti
we address the root cause, the same problem will keep returning.
5 Why analysis is
a
useful tool that brings us closer to tlie root
cause. s its nam e suggests, 5
hy
analysis involves repeatedly ask-
ing ~vhy? bout the problein (it could he m ore or less than five
times, depending on the situ;ition). Th is leads us to look beyond
the inirnediate effect-sucti as a broken drive belt- to see the
factors that might be causing tlie effect-st~cli as flaws on tlie
pulley that make the belt wear out too soon.
Figure
4-2
shows an esarnple of using Why analysis.
T K E F I V E
Take five minutes to think about th es e questions and t o write
down your answers:
Is
there a typical situation in your workplace where people
fix
the symptoms ? What do you think
is
the root cause, and what
would you do about it?
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C H P T E R
4
utonomous Maintenance
Autor~ornous nairtiertunce refers to activities curried ou t by
,~ . ~. ....
e y T e r m
s/iopfkor terns in cooperation with muintenatlce staff to help stu-
b i k e basic equipment conditions an d s l~ ot roblents early.
Autonomous ma intenance is on e of the pillars of
TI M
It
changes the old view that operators just run mach ines and main-
tenance people just ix them . O perators liave valuable knowledge
and skill that can help keep equipment from breaking down.
In autonomous maintenance, operators learn how to clean the
equipment they use every clay, and how to inspect for trouble
signs as they clean (see Figure 4-3). The y may also learn basic
lubrication routines, or at least how to check for adequate lubrica-
tion. ? hey learn simple niethods to reduce contamination and
keep the ecjuipmcnt cleaner. Ultimately, they learn more ab out
the various operating systems of the equ ipnlent and may assist
technicians with repairs.
Auiotlo~nousmaintenance activities arc like exercise and regular
K Y
P ~ I ~
I~eu lth heckups for machines. Along with preventivc mainte-
nance, they help raise O E E by lilaititaining proper operating con-
ditions, and stabilize it by detecting abnormalities before they
turn into losses.
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I M P R O V I N G O E E
Step1 Conduct initial cleaning and inspection.
Step 2 Eliminate sources o f contamination and inaccessible
areas.
Step 3
Develop and test provisional cleaning, inspection,
and lubrication standards.
Step 4
Conduct general inspection training and develop
inspection procedures.
Step
5 Conduct general inspec tions autonomously.
Step 6
Apply standardization and visual management
throughout the workplace.
Step
7
Conduct ongoing autonomous maintenance and
advanced improvement activities.
Figure
4 4. utonomous
Maintenance
ctivities
Autonomous m aintenance
is
at its heart. a team-based ac ti vi k.
Th rough the steps ofautonornous main tenance, shopfloor emp loy-
?
ees work w it h m aintena nce technicians a nd engineers ton clrd a
cotnnzort goal-more effective equipm ent (see F ig ure
4-4 .
3y shar-
in
what they know, they can catch man y o f the problems that
cause failures, defects, or accidents.
T K E
F I V E
Take five minutes t o think about these questions and to write
down your answers:
Who performs basic cleaning and maintenance on the equipment
in your work area?
Do you think autonomous maintenance activities would reduce
equipment problems in your company? Why or why not?
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e y ern
K e y P o i n t
C H A P T E R
Figure4 5
a).
Stabilizing with Autonomous Maintenance
Focused quipment and Process
Improvement
Focused equipment clnd process ilnproventent is the ? l h/I pillur
tliat deals most directly with irr~proving quipment-related losses. f
autonomous maintenance and preventive maintenance activities
are like esereise and health checkups, focused improvcnient is
like an intcnse workout tailored to develop strength in specific
m ~ ~ s c l eroups. Au tono mo ~~saintenance a ~ i d lanned maintc-
nanc e inlprove O E E Lo a certain level, then help niaintain basic
operating conditions to stabilize O E E . To raise O E E beyond this
stabilized level, companies apply focirsed improvemen t (see tlie
left and right sides of Figure
4-5 .
In corttrcrst to the onrroine activities of autonomous maintenance
a n d planned maintenance, foc~lsed mproventent involses targeted
~rojec tso reduce specific losses. The se projects a re usuallv carried
out by cross-functional teams that include people with various
skills or resources an
improvement
plan might require.
Depend ing on the target, a focused i~ np rov em en team may
include ma intena nce technicians, engineers, equ ipment clesign-
ers, operators, s up cn ko rs, a nd managers.
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I M P R O V I N G
O E E
It's u good icleu for companies to at tuin a basic fit~~essevel with
K e y
P o n
U U ~ O ~ I ~ I U O U Sn u i n t e ~ ~ u n c eind pkunned tnain tenance before
launching focused intprovenlertt projects to address specific weak-
nesses. One reason is to eliminate routine problems (sporadic
losses) so yo11 liave a clear view of clifficult or more significant
pro ble ~i is chro nic losses). Another reason
is
to avoid w in g a
more expensive and time-consuming f o c ~ ~ s e dmprovement
approach for problems that could be addressed tlirough less
expensive autononious ma intenance or planned maintenance.
Focused improvement teams use a range of approaches to cut
eq uip men t-r ela te losses. The y may use Why analysis as a start-
ing point, bu t there are also approaclies that addrcss specific
types of losses, such as setup losses and scrap. We will review
approaches that deal directly with shortening cliartgeover time
arid reducing losses froni product defects. Finally,
we
will look
at P-bl analysis, an advanced version of root cause analysis that
is used in focused improvement and quality maintenance.
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I
C H A P T E R
Before SM O
Internaland
Convert internal
Streamline
external
setup internal
and
all
aspects of
setup
Figure 45
he
hree Stages of SMED
uick
hangeover
Setu p and adju stm ent time is an iniproveiiient target for OEE,
since it reduce s tlic time in which the m ac hi ne is available to
make products. Sliigeo Sliingo, who helped develop key aspects
O the Toyota Production System, invented a changeover irnprove-
m en t system called single-minute cscliange of die, or
SMED.
Th is system gives a t hre est ag e approacli for shorten ing setup
(see Figure 4-6).
Stage :Separate Internal and External Setup
In developing S h E D , Sliingo analyzed changeover operations to
detertiline why they took so long . He recognized that change over
activities co~tlcl e divided inlo two types:
ftltcmrtl setup: setup operations that can be done only with the
cqt~ipn ient topped
Externul setup: setup operations that can be done while the
iiiacliine is working.
The problem a t most contpanies is that internal
~nd
xternal setup
operations ure rnisecl together. T h is m ean s that things tha t could
be d on e while the m achin e is running are not don e until the
machine is stopped.
Nirned lor ih goal of cnri~pletir~gl~ai~getrver itli i~ ~I single-digit ilwilber
o
niio-
utcs-9 iiii~~tilcrr lciver.
6
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I M P R O V I N G
O
Sta ge of Shingo s SMED s y s t e m i r l ~ ~ o i ~ e sorting ou t the external
setup oparations so they ca n be done before the ii tacl ~ines stopped.
This a lone can reduce se tu f~ime bv
30
to
50
/~erceitt . ypical
stage 1 activities in clu de
liansporting tools and parts to the macliine in advance
Confirming that escl~a~lgeablearts are functional before the
cl~angeover egins
Stage : Convert Internal Setup to External Setup
T h e nex t s t ep in the SkIED system is to look ag ain a t activities
clone with th e mn ch ine stopped ancl find ways to do t he m while
t h e n i a c h i ~ t cs still active. Typical stage
2
improve ments incl i lde
Preparing operating contliiions in adranee, sttch as heating
a
die
mold with a preheater instead of using trial shots of hot material
Standardizing functions sue11 as die height to elinhate tile need
for adjustments
Using devices tlmt autonmticallp position the parts witliout
I I ~ G I -
suremcn t
Stage 3: Streamline ll Aspects of Setup
Th is s tage at tacks rem ainin g setup t ime, an d includcs these
approac hes to shorteii internal setup:
Using parallcl operations (two or more people working together)
Using quick-release cl;t~nps nstcad of nuts and bolls
Using
numerical
settings to
eliminate
trial-and-error adjustm ents
T K E F IVE
Take fiv minutes to th ink about th es e qu es t ions and t o write
down your answers :
How long does a typical changeover take in your work area?
Can you list the changeover st ep s that couid be performed while
the machine s still running?
Who would you want t o have on a se tu p improvement team,
and why?
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B I
e r m
~ yo i n t
I
C H A P T E R
4
Source inspection
1 percent inspection
Prompt feedback and action
Poka-yoke systems
igure 4-7. The ZQC System
ZQ Mistake-Proofing)
T h e quality rate is a n eleme nt of OEE. W hen the equipm ent that
sliould add value to a product makes
a
defect instead, it wastes
valuable materials an d energy-and it can Iittrt tlie company's
reputation i tile defective it em reaches a customer. Therefore,
quality is an important cle me nt of a machine's effectiveness.
Many companies think that they are addressing qualiky issues
through inspection that catches defects before they leave the fac-
tory. However, inspection after {~rocessingloes not elimincrte
defects, a r ~ doesn't necessc~rify atch tflern al l, either. Quali ty can-
not be inspected in. It t i i ~ s t e Built into the process.
Shigeo Shing o carefully analyzed the causes of defects in manu-
fa ch ~r in g lants an d found that random errors were often the
most difficult causes to control. To prevent h e s e errors, he devel-
oped a mistake-proofing system known as Zero Quality Control
(Z Q C , or quality control for zero defects ).
Z Q C prevents defects by ccltching errors cmd other nonstanclctrd
conditions before they actuc~lly
t m
info defects. It ensures zero
defects by inspecting for proper processing conditions, for
100
percent of the work, ideally jt~ st efore an operation is performed.
If an error is discovered, the process shuts down and gives itmne-
diate feedback with lights, warning sounds, and so on. TIie basic
elements of a Z Q C system are summarizecl in Figure 4 5.
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I M P R O V I N
O E E
correct incorrect
press
limit switch poka-yoke)
detects correct
I
Figure 4 8. Poka-Yoke Example
Poka Yoke Systems
Because people can rnake mistakes even in inspection, nristake-
proofing relies on sensing nzechanisms culled poka-yoke system ,
which check conditions autonzatically and signul when problems
occur. I oka-yoke devices include electronic sensors such as limi t
switches and ~~hotoclectricyes, as well as passive devices sucli as
positioning pins that preven t l~ackward nsertion of a workpiece.
Figure 4-8 sho\tss an esantple of a limit switch used as a poka-yoke
system to prevent processing wlien the work is placed incorrectly.
Poka-Yoke ystems may use counters to make sure an operation is
repeated the correct number of times
The key to effective mistake-proofing is
determining
when cntd
~ I t c r e efect-causing conditions arise an d then figuring out how to
detect or prevent these conditions, every time. Sliopfloor people
have im portant knolt4edgc and ideas to share for developing and
imp lementing poka-yoke systerns that cheek every item and give
iniiiiecliate feedback on problerns.
T A K E F I V E
Take five minu tes t o think abou t
th s
questions and t o write
down your answers:
What types of actions or conditions can cause defects in your
process? At what point could you detect such an action or
condition?
Who would you want on a mistake-proofing team for your
process, and
why?
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C H A P T E R 4
igure 4 9 Chronic Problems Require an Advanced Approach
P M nalysis
You may have experienced situations when you have to makc
4 ure
epeated repnirs ind adjustments on a recurring problem
4-9).
When a problem conies back,
i t
is usually because the sitrta-
tiori is not as simple as we originally thought it was. O u r Why
analysis may have followecl one factor to a clecpcr cause, but real
life is coniplex and interrelated-several factors often work
iogether to create a particular problem.
P Ad
analysis is u tool for
systen~crtically ncoiwing un d testing al l the possible factors that
could contribute to a cl~ronic roblem such as defects or failure.
T h e P n P-it1 analysis staiicls for phenomenon -the abnornial
event we want io conlrol. It also stands for pliysical -the perspec-
tive we take in viewing the pli enom enon .
bI
refers to mecha-
nism and to tlie 4Ms -a franiework of ca i~ sa lactors to examine
(Macli ine, MenAb'ornen [operator actions], Material, and IvIethod).
P-kl analysis is often spelled with a hyphen to clistinguisli it front
abbre\iatioils for preventive or plannecl maintenance.
The esscncc of P-&I Analysis is to look systetnutically a t n f e ydetail
s y
P a i n t
SO
110
physical phen~tnetzu , nderlying condition, or causal @or is
missed. Although product clefecis and equipment failures are tlie
losses most often addressed, P-b1 analysis can b e applied to any
loss that i~ivolves n equ ipment abnormality.
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I M P R O V I N G O E E
P-kS analysis involves physically analyzing chronic losses accord-
ing to the p rinciples an d natural laws that govern Lliem. T h e basic
stepsof P-h/I analysis are
1.
Physiccilly analyzing chronic probierr~s ccording to the ir~acltinc~sper-
..
citing principles. This means understanding-in precise physical
n o w t o s t e o r
term-w hat happens \&en a n~ ac hinenalfunctions. 'To do this, the
team riwst first understand the physical standard for normal operation.
2
Defining the essential or constituent corlclitions underiyiilg the a bnoni~ al
pltmomenc~. his means understanding at the physical level d i a l con-
ditions exist when the macliine doesn't work right. Examples inc lude
the position of the work or the temperature ofa cult~ngool.
3
Iderttifiirlg ali factors thtrt contribute to the phenort~cntr n terms of the
fM
fictrnovork. 'This means examining the problem from several
viewpoints to uncover factors the tcam might otlicnvise overlook.
After going th rou gh these steps, the team surveys for the p resence
of the factors, then tests inqxo venterit actions. I~i gu re s -10 and
4-1 on the follo~v ing ages are
P-bI
analysis tables. Figure
3-10
shotvs how inf or~ nat ion s developed a t each step. Figure 4-1
d ~ o wio1v the tea m checks for factors an d tests its imp rovements .
P-144
unulysis is considered a n advanced tool becouse this level of
n y v o l n t
detective work requires rnore time, resources, a n d expertise th an
5
Why
analysis. For these reasons, focused improvement teams
may save P-M analysis for co mp lex or costly proble ms.
T K E F I V E
Take five minutes to think about these questions and to write
down your answers:
Think
o
a familiar situation where a machine problem recurs.
What do people usually do about it? Can it be resolved with
5
Why analysis
or
does
it
need more analysis?
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C H A P T E R
ure 4 10. P M Analysis Tablo
5
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I M P R O V I N G O EE
:ure 4 11. P M Analysis Survey Results
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O F O R O P E R A T O R S
\jVc
measure O E E to monitor tlie condition of tlic equipm ent.
T h e point of using the O E E m easure is to drive improvement.
St ~s tai ne d mprovement requires a dedicated approach , with
management support.
\Vlien a problem returns, it often turns oirt that we have been
treating the symptoms of the problem , but not dealing with its
root cause. \Vhy analysis is a useful tool tliat brings its closer
to the root cause.
*Autonomous maintenance refers to activities carried out by
shopfloor teams to help stabilize basic equipment conditions
and spot problems early.
I t
cliangcs th e old view tliat operators
just run macliincs and maintenance people just
ix
them.
Along with preventive mairi tcnarice, a~~tonomousainte-
nance activities lielp raise O E E by m ainta ining proper opcr-
ating conditions, and stabilize it by detecting ,tbnormalities
before they turn into losses.
Tlirougli tlie steps of autonomous
maintenance
shopfloor
employees work with inaintcnancc technicians arid engineers
-
toward a com mo n goal-more effective eq i~i pm en t.
f~ocusecl quipment and process improvement
is
the TPR4 pil-
lar that deals mo d directly with improving equiprncnt-related
losses.
Autonomous n ia in tenance and p reven tive ma in tenance
improve OE E to a certain level, then help maintain basic opcr-
ating conditions to stabilize the O E E . To raise O E E beyond
this stabilized Ievcl, companies apply focused irn pro\w nen t.
Focriscd improvement involves targeted projects to reduce
specific losses, carried out by cross-f~tnction;tl eams tliat
include people with skills or resources an improvement plan
might require.
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I M P R O V I N G
O E E
It's good for companies to attain a basic fitness level with
a u tono~ i iousmaintenance and prevent ive maintenance
before launching focused improvement projects to address
specific weaknesses.
Fo ci ~s ed mprov eme nt teams use a range of approaches,
inc lud ing approaches tha t address spec i f ic eq~~ipment -
related losses.
Setup and adjustment time is an improvement target for
OEE,
since it reduces the time in which the machine is
available to make products.
Shigeo Sh ingo invented
a
changeover improvemen t system
called single-minute escliange of die, or SMEU. 'This sys-
Len1 gives a three-stage approach for sllortening setup:
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