Get the most out of OEE

18 May 2015




Get the most out of OEE

As lean manufacturing continues to dominate the converting industry due to the alignment of its principles with those of the converters who use it, overall equipment effectiveness (OEE) has won over many converts. Automation World's recently released playbook covers strategies and tactics for getting the most out of lean and OEE initiatives.

Accessing data
One of the great challenges when executing a project to gather and report OEE metrics is easy access to manufacturing equipment status. The obstacles may include islands of automation or even equipment that's not automated. Don't expect all equipment information to be available via existing automation systems; be prepared to install simple data acquisition systems to gather the necessary data to track OEE.

Stakeholder input
Lean manufacturing is critical in today's global economy because it helps to increase output (product efficiency) while limiting defects and the need for any reworking, thereby improving throughput quality. This will require more than a cursory discussion with a plant operator, as multiple departments will be affected; quality control, engineering, manufacturing, process, distribution, supply chain and others will all need to voice their opinions to enable the system to be integrated with minimum impact. In addition, there is the chance to work across departments to pool experience and identify any teething problems before they take root. Whether this is undertaken by an independent cell within the factory or across the site will depend on the level of general enthusiasm towards the project.

Lean management
When employed correctly, lean manufacturing is a powerful concept. The problem is that with lean, along with other methodologies, one size does not fit all. Managers can get caught up in how it improved one company or industry, and then try to implement it internally. What they fail to do is analyse why it worked, what support structure is required and how that translates to their internal business. Lean is as much about management engagement in daily operations as it is about the methodology.

Measure the right things
Nothing is worse than the wrong input. OEE is not always a KPI metric in batch operations. If you speed up the drying process, for example, the OEE goes down, but you will be producing more in less time. Likewise, if you are printing at high speeds, laminating wider formats or producing pouches, if the equipment is more effective you will get a corresponding reading. If the wrong data or information is used to measure OEE, you will get an incorrect figure and one that will be of no value in making critical decisions.

Visual management
This type of management, including having large display screens on the factory floor, can be an effective tool for OEE programmes, letting both managers and workers monitor the metrics of production lines and track KPIs. Displays harness natural human competitiveness. In one experience, once data was displayed it started a race between shifts to drive up OEE. Without any management intervention, there was a 20% increase in productivity. Among the most useful KPIs to display are count (good or bad), reject ratio, operating speeds, takt (cycle) time, downtime and OEE (availability multiplied by performance and quality) for determining resource use.

Increase uptime
Lean manufacturing is a very important factor in a production plant. By merely placing materials at the point of use within the production floor area, you can increase production uptime. This is one small adjustment that will fine-tune the flow of your product.

Too lean?
If you operate with vendors that are stationed in areas with a high potential for natural disasters, think carefully about being too lean with your supplies. You'll need to plan for alternative routes and suppliers. Another area that has to be monitored is the amount of production time required to meet customers' need. Sometimes manufacturing is too lean, and when there's a sudden demand, the slow ramp to manufacture can cost more money than producing stock.

Business support
Make sure the business has adopted and fully understands OEE. This can be a huge change management nightmare if not well-entrenched prior to the project or as part of the project execution. Lean manufacturing can also be applied to service disciplines, not just product manufacturing, mostly with only minor adaptations. Look to these techniques and principles to streamline your own processes and eliminate waste.

Meaningful reports
Data capture is quite easy. Reporting the data in a manner that helps to implement change can be challenging. Don't assume a single report is sufficient. Different users need different data, and that data must be presented to each user in a meaningful way.

Improvement tool
OEE can be a very valuable tool to identify problems within a process. Ensure that everyone understands what the three elements are that make up OEE - availability, speed and quality - and how to calculate each one. Once processes are stabilised, use OEE to drive improvement.

Software less important
Software selection plays a small part in the OEE process, but that is where customers spend the most time upfront. Operator involvement, the quality of the integration partner and the ability of the controls hardware to collect data are what truly make an OEE project successful.

Efficiency tool
OEE has to be automated to be successful. The data needs to be driven from machine status, not humans inputting the status. Any manually derived OEE system can be fiddled with to produce the expected 85% efficiency rate. Improving systems and automating OEE measurements may bring into question the accuracy of historical OEE data. To avoid internal politics, put an amnesty in place and promote automated data as a new way of measuring OEE. On the other hand, the only reason to use OEE is to help drive an improvement process to increase operational efficiency. If that isn't a widely embraced priority, then save yourself lots of time, money and effort.

Improving uptime
OEE can help you to identify opportunities to improve your total uptime. First, make sure you understand the categories that OEE represents. Next, determine what things you want to track and how specific you want to be. There isn't a set rule as to what that may be. An example may be that under your performance efficiency category you list specific pieces of equipment in an assembly line to track. By breaking down your categories, you will have more opportunities to make improvements. The last hurdle is how to capture the data used to calculate OEE. Keep it simple and train your people in how to capture the data you need, what it is and why it's important.



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