Overall Equipment

Effectiveness (OEE)
Alcoa Operations Management
Consulting
14/05/2012

Presentation name

Objetivos de Aprendizaje
Entender la Capacidad de Equipo como un prerequisito para
calcular Overall Equipment Effectiveness (OEE)
Entender la definicin y el uso de OEE como un facilitador del
ABS.
Ser capaces de realizar un estudio de OEE en una o ms
piezas de equipo.

14/05/2012

Presentation name

Agenda

El OEE en las Necesidades del Negocio y la Estabilidad.

Capacidad y Tiempo de Ciclo Estndar
Responsabilidad Administrativa
Definicin de OEE y la Solucin de Problemas
Clculos Tcnicos
o Equipo Dedicado
o Equipo de Propsito General
Ejemplo Alcoa
Pasos para el estudio OEE
Ejercicio

14/05/2012

Presentation name

Sistema de Produccin Toyota

Metas:

La mas alta Calidad Al mas bajo costo

El mas corto tiempo de entrega

Clave: Mediante la Eliminacin del Desperdicio

Automatizacin
Justo-a-tiempo
( Jidoka )

Continuous
Flow
Flujo
continuo

Pull
System
Sistema
de estirar

Para
y
Automation
notifica
with a
Human Touch
anormalidades

Separar el trabajo del

hombre con el trabajo de
la maquina
A prueba de errores
pokayoke

Tiempo
Time
Takt
Takt

Nivelacin

(Heijunka )

Trabajo
Estandarizado

Mejoramiento Continuo
(Kaizen)

Estabilidad

(Por ejemplo: Equipo. confiabilidad, procesos estables, calidad, proveedores)

Gente
14/05/2012

Presentation name

Estabilidad
Persona

-Fiable para realizar el trabajo

-Buenos hbitos laborales
-Apropiado nivel de habilidad
-Buena Asistencia

Mquina

-Sin averas
-Sin generacin de defectos

PREVIENE

Problemas con Impacto

en la Estabilidad de las
Mquinas:
Fallas en los Equipos
Defectos
Retrabajo
Escasez
Ausentismo

Materiales

-Sin defectos
-Sin escasez de material

14/05/2012

Mtodos

-Procesos estandarizados
-Roles y prcticas de administracin estndar
-Prcticas de mantenimiento estndar

Presentation name

Enfoque a la Inestabilidad
Tradicional vs. ABS
ABS:

Tradicional:
Mantener grandes
inventarios
Agregar mas turnos de
trabajo o trabajar horas
extra
Comprar ms equipo

vs.

Exponer problemas

Buscar la causa raz

de los problemas

Solucionar problemas
1x1

El OEE permite un enfoque ABS para lograr la estabilidad

14/05/2012

Presentation name

Qu es OEE?
La efectividad general del equipo es la
disponibilidad de una mquina en condiciones de
operar [produciendo productos de calidad en el tiempo de
ciclo estndar] cuando se necesita.*

Shop Floor Target is

100% OEE through problem
solving
* Ohno, Toyota Production System: Beyond Large Scale Manufacturing, 1978, page 60.
7

El valor del OEE

Es una simple pero poderosa herramienta para
mejorar la estabilidad y encontrar el desperdicio a
travs de observaciones en el piso del taller, a
cambio, se reducen costos y se incrementan la
eficiencia y la satisfaccin de entrega.
Utilizada para descomponer grandes problemas de
perdida de capacidad, en pequeos problemas
controlables que pueden ser resueltos en el piso del
taller.
Pueden ser medidos por el operador en el piso del
taller para exponer los problemas.
8

Conexin entre OEE y Caso de

Negocio y Estabilidad
Necesidad de
Negocio/Problema
Capacidad Actual
Capacidad Instalada
Capacidad de Produccin
Capacidad Demostrada

Demanda Actual y
Capacidad Sin Usar
Rate de Operacin

Prdidas Operacionales
Actuales
OEE

Ejemplo: se necesita
incrementar las ventas un 25%
Cual es la capacidad
actual/percibida de la
operacin?
Cunta capacidad est sin usar
y puede ser vendida por
marketing y ventas?

Cunta capacidad se pierde por

la inestabilidad del proceso de
produccin?
9

Capacidad Instalada

Unidades/Dia

1500

900
800
700
600
500
400
300
200
100
0

Capacidad instalada = 1440 unidades

(Salida al estandar)

Capacidad Instalada:
Tiempo total Posible* = 1440
=
La mxima salida que se puede Tiempo de ciclo estndar unidades
conseguir bajo las mejores
por unidad
condiciones de operacin
estndar.

14/05/2012

1440 minutos (sobre 3 turnos)

1 minute por unidad

* Tiempo total posible = tiempo de calendario

Presentation name

10

Qu es un ciclo?
CARGA

10 seg

MQUINA

40 seg

DESCARGA

10 seg

CARGA

10 seg

MAQUINA

40 seg

DESCARGA

10 seg

1 Ciclo = 60 segundos

Un ciclo es el tiempo que toma completar una pieza

contando los tiempos de carga y descarga.

11

Tiempo de Ciclo Estndar

Tiempo para completar un Ciclo
ES el tiempo de ciclo mnimo observado que
logra los estndares de calidad mientras el
proceso esta corriendo bajo las mejores
condiciones de operacin estndar.
NO ES un nmero derivado de frmulas
matemticas de un reporte ed produccin o un
estndar historico que puede ser inexacto o
provocar desperdicio.
12

Capacidad de Produccin

Units/Day

1500

900
800
700
600
500
400
300
200
100
0

CAPACIDAD INSTALADA = 1440 units

(salida al estndar)

Poltica de la
Gerencia

CAPACIDAD DE PRODUCCIN = 840 units

(salida al estndar)

Capacidad de Produccin:
840 minutos*
840
La mxima salida que se puede =
=
1 min/pc (estndar)
unidades
conseguir en el tiempo de
Horario Actual:
operacin establecido y bajo las
Dos turnos de 8 horas por da
mejores condiciones de
30 minutos para comida
operacin estndar.
Dos descansos de 15 minutos
para desayuno por turno
PMs hechos fuera de turno
* Tiempo de Produccin Disponible = Tiempo Establecido Tiempo Muerto
13

Capacidad Demostrada

Units/Day

1500

CAPACIDAD INSTALADA= 1440 unidades

(salida al estndar)

Poltica de la
Gerencia

900 CAPACIDAD DE PRODUCCIN= 840 unidades

800 (salida al estndar)
OEE
Prdidas
700 CAPACIDAD DEMOSTRADA= 630 unidades
600 (output at actual)
500 Capacidad Demostrada
Tiempo de Produccin Disponible*
630
400 La salida histricamente =
Tiempo de Ciclo Actual
= unidades
Promedio**
300 comprobada del equipo
200
840 minutos
1.33 minutos por unidad
100
* Tiempo de Produccin Disponible = Tiempo Establecido Tiempo Muerto
0 ** Tiempo de Ciclo Actual Promedio= Tiempo de Produccin histrico promedio/ Produccin buena promedio
14

Demanda Actual y Capacidad

sin Usar
Rate de Operacin:

% de capacidad de produccin en tiempo de

ciclo estndar requerido para cumplir con la
demanda del cliente
= (Demanda / Capacidad de Produccin)

15

Rate de Operacin
1500

CAPACIDAD INSTALADA= 1440 unidades

(salida al estndar)

Units/Day

Poltica de la
Gerencia

900
800
700
600
500
400
300
200
100
0

CAPACIDAD DE PRODUCCIN= 840 unidades

(salida al estndar)

Prdidas
Histricas

OEE
Prdidas

CAPACIDAD DEMOSTRADA= 630 unidades

(salida al estndar)

Ventas/
Mktg

Capacidad sin usar

RATE DE OPERACIN=
Demanda
=
420

Demanda / Capacidad de Produccin=

420 unidades/ 840 unidades=
50%
16

Prdidas Operacionalesy de
Estabilidad
Efectividad General del
Equipo(OEE):

% del desempeo de produccin actual vs.

produccin requerida durante el tiempo
operativo programado al tiempo de ciclo
estndar
=

Unidades buenas actuales

Unidades Requeridas(en el tiempo de ciclo estndar)

O
=
Unidades buenas actuales
Unidades Demandadas(en el tiempo de ciclo estndar)
17

Unidades/Dia

OEE
1500

Capacidad instalada = 1440 unidades

900
800
700
600
500
400
300
200
100
0

Capacidad de produccion = 840 unidades

Politica
de la
Gerencia

(Salida al estandar)

(Salida al estndar)

OEE
Perdidas HistricasPerdidas

Capacidad demostrada = 630 unidades

(Salida a lo actual)

OEE Perdidas
Demanda
=
420

Nivel de operacin =
Demanda / capacidad de produccin =
50%
14/05/2012

1 Turno

OEE
Perdidas

Unidades
buenas actuales
= 240

OEE =
Unidades buenas actuales / Demanda =

57%
Presentation name

18

Responsabilidad
Liderazgo

Unidades/Da

1500

900
800
700
600
500
400
300
200
100
0

Capacidad instalada = 1440 unidades

(Salida al estndar)

Poltica de la
Gerencia

Capacidad de produccin = 840 unidades

(Salida al estndar)

Perdidas

OEE
Perdidas

Produccin.
Gerencia.

Alta
Gere

Capacidad demostrada = 630 unidades

(Salida a lo actual)

Capacidad
no utilizada

Mercadotecnia

OEE
Produccin.
Perdidas Gerencia.

Demanda

=
420

Ventas
Y

Unidades
buenas actuales

= 240

Nivel de operacin =
Demanda / capacidad de produccin =
50%

OEE =
Unidades buenas actuales / Demanda =

57%
19

Gerencia
Tiene la responsabilidad de tomar decisiones que
impactan la capacidad.
Debe demostrar una actitud de observacion.

Debe proveer soporte a los departamentos de

compras, marketing y produccion.
Debe asegurarse que los problemas estan
siendo resueltos de la manera correcta y a
tiempo.
20

Ventas y Marketing
Responsables de vender la capacidad
sin usar
Responsable de no sobreprogramar
operaciones

21

Control de Produccion
Responsables de eliminar las perdidas de OEE
Meta = 100% OEE mediante la solucion de problemas

Debe tener una actitud de observacion.

Se asegura de que los problemas de produccion
estan siendo identificados y resueltos desde su
causa raiz y a tiempo.
Provee entrenamiento y soporte al equipo de
resolucion de problemas en piso.
22

OEE
Es una manera de evaluar el desempeno de la produccion vs.
la produccion requerida en el tiempo de operacion
programado.
Una medida que puede utilizarse para dividir los grandes
problemas de capacidad en problemas mas pequenos y
controlables que se pueden resolver en piso.

OEE =

Actual good units

Required units at standard cycle time

23

Shop Floor Units Based OEE

Progressive Work Chart for 1 Shift

Hour

Plan

Actual

( Reqd parts at
std. cycle time)

(Good parts)

7-8

60 / 60

60 / 60

100%

8-9

45* / 105

15 / 75

33%

Wait for material

9-10

60 / 165

45 / 120

75%

Changeover

10-11

60 / 225

30**/ 150

50%

Made scrap

11-12

30* / 255

30 / 180

100%

12-1

60 / 315

15**/ 195

25%

Made scrap

1-2

45* / 360

15 / 210

33%

Machine Down

2-3

60 / 420

30 / 240

50%

Ran slow

Total

420 / 420

240

OEE

Comments

PROBLEMS!

PROBLEMS!

57%

* Scheduled breaks and lunch ** Made 30 off-quality units these hours

24

Units/Day

OEE Losses
1000
900 Production Capacity per 2 shifts = 840 (output at standard)
800
700
600
500 Production Capacity per 1 shift = 420 (output at standard)
30
400
Demand
100
=
300
25
420
25
200
ACTUAL
100
OUTPUT
= 240
0
RATE OF OPERATION =
Demand / Prod Capacity =
50%

Problems to
be solved:

Method

OEE =
Actual / Demand =
57%

Material

Machine

Person
25

Practical Problem Solving

26

History of OEE at Alcoa

Initial focus of operational availability (OA) at Alcoa was to
improve equipment availability due to excessive downtime
Alcoa defined OA as equipment availability,
Actual Run Time
Scheduled Time Scheduled Down Time

excluding performance rate (run speed) and quality factors

AOMC has adopted Overall Equipment Effectiveness (OEE)
as the standard definition of OA. This definition includes all
three factors (availability, performance rate, and quality).
27

OEE (Overall Equipment

Effectiveness)
Availability
Is the process operating when planned?

Performance Rate
Are we making product at the desired rate?

Quality Rate
Are we producing good product?

28

Components Based OEE Equation

OEE =Availability

x Performance Rate x Quality

Rate
Actual Run Time*

Actual Total Units

(e.g., in a shift) X

Standard
Cycle Time

Actual Good Units

Scheduled Time Scheduled Downtime

Actual Total Units

Actual Run Time

(reflects run-speed efficiency and

losses due to minor stoppages)

*Actual Run Time = Scheduled Time All Downtime

29

1.
2.
3.
4.
5.
6.

Six Major Losses (TPM)

Equipment Failure
Setup/Adjustment
Idling and Minor Stoppages
Reduced Speed
Quality Defects in Process/Rework
Startup Losses

30

Units/Day

OEE Losses
900
800
700
600
500
400
300
200
100
0

Production Capacity per 2 shifts = 840 (output @ standard)

Production Capacity per 1 shift = 420 (output @ standard)

30

30

50

60

Demand
=
420

ACTUAL
GOOD UNITS
= 240

RATE OF OPERATION =
Demand / Production Capacity =
50%

Problems to
be solved:

Equipment Setup/
Failure Adjustment

OEE =
Actual Good Units / Demand =
57%
Idling/
Minor
Stoppages

Reduced
Speed

Quality
Defects

Start-up
Losses
31

Frequent Changeovers and OEE

A
Changeover

B
Changeover
A
Changeover
B
Changeover

8 Hours

A
Changeover
B
Changeover
A
Changeover
B
Changeover
A
Changeover
B
Changeover
A
Changeover
B
Changeover

ABS:
-Small Lot sizes
-Frequent C/Os

Impact on OEE?
-Increased c/os without reducing
c/o time results in lower OEE
-Increased c/os when c/o time is
reduced proportionately does not
impact OEE

Goal:
-Reduce c/o times and
increase frequency of c/os.
32

Load/Unload

Load/unload (L/UL) is included in the cycle,

therefore it is not an OEE loss
Goal is to eliminate the time the machine
waits on L/UL
Can be difficult to determine whether L/UL
activities are included in the cycle, especially
for long, manual L/UL times
If changeover impacts L/UL time, classify it as
changeover time

33

Rules of Thumb

Does the calculation expose problems, in

particular, the problems related to the
business problem you are trying to solve?
Is the calculation easy to understand? (KISS)
Are the problems within the operators
control? Things not in the operators control:
planned scrap (e.g., side scrap)
machine design leading to long, manual
load/unload times (however, standard load/unload
times are still required, and times exceeding them
are OEE losses)

34

Equivalent Calculations
Components based OEE:
Availability

Actual Run Time

Sched. Sched.
Time
Downtime
330 minutes
x

420 minutes

STANDARD:

Performance Rate

Total Units x Std Cycle Time

Quality Rate

Good Units
Total Units

Actual Run Time

300 units x 1 min. /unit
330 minutes

1 unit/minute
x
420 minutes
=
420 units

240 units

4 hrs
good
output

57%

300 units

8 hrs

.5 hr speed
losses

Shop floor units based OEE:

OEE =

Good Units
Reqd Units at Standard

1 hr scrap
loss
1 hr unsched
downtime

240pcs
=

=
420 pcs

57%

.5 hr c/o
1 hr lunch

35

Example OEE
Calculations
for
the
Alcoa Operations Management
Consulting
Dedicated and
General Purpose
Equipment

36

Equipment Definitions
Dedicated Equipment
Run to takt time
Runs parts that require the same standard cycle times
OEE is calculated using units

General Purpose Equipment

Run to cycle time
Runs parts that have different standard cycle times
OEE is calculated using time
37

Shop Floor Units Based OEE Equation

for Dedicated Equipment
Progressive Work Chart for 1 Shift
Hour

Plan

Actual

(Reqd parts at
std. cycle time)

(Good parts)

7-8

60 / 60

60 / 60

100%

8-9

45* / 105

15 / 75

33%

Wait for material

9-10

60 / 165

45 / 120

75%

Changeover

10-11

60 / 225

30**/ 150

50%

Made scrap

11-12

30* / 255

30 / 180

100%

12-1

60 / 315

15**/ 195

25%

Made scrap

1-2

45* / 360

15 / 210

33%

Machine Down

2-3

60 / 420

30 / 240

50%

Ran slow

Total

420 / 420

240

OEE

Comments

57%

* Scheduled breaks and lunch ** Made 30 off- quality units these hours

Actual good units

240 =
=
OEE =
420
Demand units at standard cycle time

57%
38

Components Based OEE Equation

OEE = Availability

x Performance Rate x Quality

Rate
Actual Run Time*

Actual Total Units

(e.g., in a shift) X

Standard
Cycle Time

Scheduled Time Scheduled Downtime

Actual Good Units

Actual Total Units

Actual Run Time

(reflects run-speed efficiency and

losses due to minor stoppages)

*Actual Run Time = Scheduled Time All Downtime

39

Availability Calculation
% Availability =

Actual Run Time

X 100

Scheduled Time Scheduled Downtime

Notes:
Actual Run Time = Time actually running
= Available Production Time Unscheduled Downtime
(Changeovers are considered an availability loss and are
included in unscheduled downtime)
Available Production Time = Scheduled Time Scheduled Downtime
Scheduled Time = Time machine will be planned for work or crewing (e.g.,
length of shift)
Scheduled Downtime = Time set aside (e.g., meals, breaks, daily PM, management
policy, but not changeovers)

40

Availability - Machine Process Total= 480 min

Time, hrs

RUN

60

15

105

30

45

15

60

Run =
330 min

Wait on Metal

30
Changeover

15

15

Equipment
Problems
Other
Unscheduled

30

330 min.
Avail. =

= 78%
420 min.

Scheduled
Maintenance

Lunch and
Breaks

Down
Time
=
90 min

15

30

15

Sched.
Down
=
60 min

41

Availability Example
8

Hours in Shift

Scheduled Time = 8 hrs.

Meals &
Breaks

7.0

6
5

Scheduled Downtime = 1 hr.

Equip. / Mat.
Problems

6.0

Availability Losses = 1.5 hrs.

Setups

5.5

5.5

Actual
Run Time = 5.5 hrs.

3
2
1
0

Availability =

Actual Run Time

Scheduled Scheduled
Time
Downtime

5.5 hrs
7 hrs

78%
42

Performance Rate Calculation

Performance
Rate
=

Total Units
(e.g., in a shift)

Standard
Cycle Time

Scheduled Time All Downtime

(Reflects run-speed efficiency and

losses due to minor stoppages)

300 units x 1 minute /unit

480 minutes 150 minutes

91%
43

Quality Rate
Calculation

Quality Rate =

Good Units
Total Units

240 units
300 units

80%

44

Components Based OEE

Calculation
for Dedicated Equipment
x

Availability

Total Units
(e.g., in a shift) X

Actual Run Time

Scheduled Time Sched. Downtime

8 hrs per day

- 1 hr lunch/breaks =
7 hr AVAILABLE PROD. TIME
- .5 hr mech. failure - .5 hr waiting on metal
- .5 hr setup =
5.5 ACTUAL RUN TIME
5.5 hrs/7 hrs =

.78

Quality
Rate

Performance Rate
Standard
Cycle Time

Actual Good Units

Actual Run Time

Total Units

(reflects run-speed efficiency and

losses due to minor stoppages)

300 units x 1 minute / unit

(8 hrs 2.5 hrs) (60min/hr)

.91

240 units
300 units =

.80

OEE = .78 x .91 x .80 = 57%

45

Shop Floor Units Based Calculation of OEE

for General Purpose Equipment
Part Type
X

Hour
1
2
3
4
5
6
7
8
Total
OEE (Units)

Plan
20/20
20/40
20/60
20/80
5/85
5/90
5/95
5/100
100

Actual Good Units

Shift A
Shift B
20/20
20/20
20/40
20/40
15/55
20/60
20/75
20/80
5/80
5/85
5/85
5/90
5/90
0/90
5/95
5/95
95
95
95%
95%

Standard Cycle Time

- Part X = 3 minutes
- Part Y = 12 minutes
46

Shop Floor Units (Time) Based Calculation of

OEE
for General Purpose Equipment

Part Type
X

Hour
1
2
3
4
5
6
7
8
OEE (Units)
OEE (Time)

ACTUAL GOOD UNITS

Plan
Shift A
Shift B
20/20
20/20
20/20
20/40
20/40
20/40
20/60
15/55
20/60
20/80
20/75
20/80
5/85
5/80
5/85
5/90
5/85
5/90
5/95
5/90
0/90
5/100
5/95
5/95
95
95
100/100
95%
95%
480

Standard Cycle Time

- Part X = 3 minutes
- Part Y = 12 minutes

ACTUAL GOOD TIME

Shift A
Shift B
60/60
60/60
60/120
60/120
45/165
60/180
60/225
60/240
60/285
60/320
60/345
60/360
60/405
0/360
60/465
60/420
465
420

97%

88%

CORRECT!

47

Components Based OEE Calculation

for General Purpose Equipment
(Using Shift A Data Run Speed Losses)

Availability

8 hrs per day 0 scheduled down time =

8 hrs. AVAILABLE PROD. TIME
0 downtime =
8 hrs RUN TIME

1.0

Actual Good Units

Total Units

Actual Run Time

Scheduled Time Scheduled Downtime

Quality
Rate

Specific Standard
(e.g.,Units
Cycle Time
in a shift) X

Actual Run Time

8 hrs. / 8 hrs. =

Performance Rate

(reflects run-speed efficiency and

losses due to minor stoppages)

(75 u. x 3 min/u.) + (20 u. x 12 min/u.)

=
8 hrs (60 min/hr)

.97 x

95 units
95 units

1.0

OEE = 1.0 x .97 x 1.0 = 97%

48

Components Based OEE Calculation

for General Purpose Equipment
(Using Shift A Data Quality Losses)

Availability

Specific Standard
(e.g.,Units
Cycle Time
in a shift) X

Actual Run Time

Sched Time Sched Downtime
8 hrs per day 0 scheduled down time =
8 hrs. AVAILABLE PROD. TIME
0 downtime =
8 hrs RUN TIME

8 hrs. / 8 hrs.

Actual Run Time

Specific Standard
Good Units
Cycle Time
(e.g., in a shift) X

Specific Standard
(e.g.,Units
Cycle Time
in a shift) X

(reflects run-speed efficiency and

losses due to minor stoppages)

(80 u. x 3 min/u.) + (20 u. x 12 min/u.)

8 hrs (60 min/hr)

Quality
Rate

Performance Rate

(75 u. x 3 min/u.) + (20 u. x 12 min/u.)

(80 u. x 3 min/u.) + (20 u. x 12 min/u.)

OEE = 1.0 x 1.0 x .97 = 97%

49

for General Purpose

Equipment

OEE = (Good Units * Std Cycle Times)

Available Time

50

Alcoa OEE Calculation

Example
Alcoa Operations Management
Consulting

51

Alcoa Richmond Foil - J-Mill

Example
8111 Alloy
Runs in batches of 4 or 5 coils
Process:
-

Breakdown
1st Pass
2nd Pass
3rd Pass

Crowning and flushing required

between batches

52

Observed Data:

J-Mill OEE Data

OEE Study Sheet:

J-Mill
ACTIVITY
8 / 14/ 03
Run
Turn Around
Roll Change
Maintenance
Crown/Flush
Paperwork
Lunch/Breaks
Planned Maintenance
Web Break
End From Line
Other

7:00
7:10
7:20
2 2 2 2 2 2 2 2 2 2 2

Summary:

7:30
7:40
7:50
8:00
2 2 2 2 2 2 2 2 2 2 2 2 2
2 2 2 2
2 2

8:10
8:20
2 2 2 2 2 2 2 2 2
2 2

8:30

8:40
8:50
2 2 2 2 2 2 2 2 2 2 2

2 2 2

2 2

Scheduled Time
Run
Turn Around
Roll Change
Maintenance
Crown/Flush
Paperwork
Lunch/Breaks
Planned Maintenance
Web Break
End From Line
Other
Scheduled Down Time
DOWNTIME

8/14/03
480
318
56
0
20
0
0
0
0
16
0
70
0
162

9:00
2

9:10
2 2

2 2 2 2 2 2

Scheduled Time = 480 min.

Scheduled Downtime = 0 min.
Actual Run Time = 318 min.
Downtime = 162 min.
Quality Rework = 0 coils
Good Units = 8.75
Total Units = 8.75
53

OEE Calculation - General Purpose Equipment

Components Based OEE Formula:
x

Availability

Total Units
(e.g., in a shift) X

Actual Run Time

Scheduled Time Sched. Downtime

318 min.
(480-0) min.

0.6625

Performance Rate
Standard
Cycle Time

Actual Good Units

Actual Run Time

Total Units

(4 units x 25 min./unit) +
(4 units x 45 min./unit) +
(0.75 units x 40 min./unit)
318 min.

0.975

Quality
Rate

8.75 coils
8.75 coils

1.0

X 100

65%
54

How can OEE

be easily tracked
visually on the
shop floor?
55

J Mill Daily Visual Management

Board
Hourly Production
A Shift

7am

8am

9am

10am

11am

12pm

1pm

2pm

3pm

B Shift

3pm

4pm

5pm

6pm

7pm

8pm

9pm

10pm

11pm

C Shift

11pm

12am

1am

2am

3am

4am

5am

6am

7am

12.5%

24%

36.5%

87.5%

100%

OEE

Plan

0%

#1
Crown

#2

BD

#3

BD

BD

#4
BD

Flush

50%

#1

#2

#3

1st

1st

1st

Pass

Actual
Shift
OEE

Crown

#1

#2

#3

#4

BD

BD

BD

BD

62.5%

Flush

75%

#4
1st

Flush

Pass

Pass

Pass

#1

#2

#3

#4

1st
Pass

1st
Pass

1st
Pass

1st
Pass

#1

#2

#3

#4

#1

#2

#3

#4

#1

BD

BD

BD

BD

1st
Pass

1st
Pass

1st
Pass

1st
Pass

2nd
Pass

#1

#2

2nd

2nd
Pass

Pass

#1
Flush

2nd
Pass

56

Your turn to observe, calculate OEE, and develop

kaizens and an action plan to solve problems

57

OEE Study
Alcoa Operations Management
Consulting

58

First Questions

What is the business case or need?

What problems you are trying to solve?
If you are trying to solve equipment stability or
capacity problems, begin with an OEE
improvement project.

59

Example Trim Sheet Problem

Business Case: Previous demand was 700 coils/day.
Demand has doubled to 1400 coils / day.
The process can make 240 coils/hour (1680 coils/8-hr shift), when everything is
OK (running to standard). The standard cycle time is 15 seconds/coil.
The actual production data for a month shows range of 600 to 750 coils/shift,
with an average of 680 coils/shift.
What is the problem?
-Availability? If yes, where are the losses? What happens during setups?
-Speed? Is it consistent? Too slow? Too fast?
-Quality? Scrap rate? Losses during setups?

WE KNOW VERY LITTLE ABOUT THE PROBLEM!

60

Units/Day

6000

1800
1600
1400
1200
1000
800
600
400
200
0

Trim Sheet OEE

INSTALLED CAPACITY = 5760 units

(output at standard)

Mgt.
Policy
PRODUCTION CAPACITY = 1680 units (1 shift)
(output at standard)

NEW DEMAND = 1400 units/day

New
Demand
=
1400/day

Historical
Losses
OEE
= 40%
DEMONSTRATED CAPACITY = 680 units (1 shift)

Previous
Demand
=
700/day
RATE OF OPERATION =
Demand / Prod Capacity =
42% to 84% increase

(output at actual: 680 avg, range=600 to 750)

Mgmt Policy:
1 shift/day, 1 hr breaks/lunch
Std Cycle Time = 15 seconds
61

OEE Study
What is an OEE study?
First-hand detailed machine observation that
exposes production stability problems, root causes,
and potential countermeasures
Why do an OEE study vs. just using existing downtime reports?
An OEE study requires one to go the the shop floor
and SEE production first-hand
When should you do an OEE study?
Early in an improvement project

62

OEE Study
Where do you perform an OEE study?
It depends on the business case;
Typically one begins with the system
constraint
Who should perform an OEE study?
Line managers, operators, mechanics, and
ABS resources
How do you perform an OEE study?
63

What Should We Do?

Go to the process and observe
Measure the availability, cycle times, output, quality
Note contributing eventslook beyond the data

Summarize what was learned

State (or restate) the problem
Develop an action plan
Solve problems
64

OEE Study Steps

1.

Define machine(s) to be studied, the cycle(s), and the standard cycle time(s)

2.

Determine installed, production, and demonstrated capacities

3.

Define OEE study sheet downtime categories (e.g., run, equipment

downtime, changeover) and observe 5 cycles or 1 hour, whichever is less,
to verify OEE study sheet categories and triggers

4.

Design observation schedule, number of observers required, and prepare

tracking sheets

5.

Perform observations (10 cycles minimum)

6.

Summarize data by category for each machine and the overall system

7.

Calculate the OEE for each machine and the overall system

8.

Document problems, root causes, and countermeasures

9.

Develop improvement strategy based on leverage points observed,

65

OEE Study Steps

1. Define the machine(s) to be studied, the
cycle(s), and the standard cycle time(s)

Review electronic or manual process/downtime

tracking data available

Use any existing Standardized Work or SOPs

Note: You may have to observe the equipment

first to define its cycles and standard cycle times
66

Trim Sheet Example

Product: 24 utility coil for remodeling and new home construction
Machine to be studied: Unwinder unwinds master coils into 50
lengths for packaging
Cycle: Wrap coil Cut sheet Eject coil
Standard cycle time: 15 seconds
People: 2 person operation Operator and Stacker

Machine experiences master roll changes and specification

changeovers
Lets watch a few minutes of video to confirm the above information
67

OEE Study Steps

2.

Determine installed, production, & demonstrated capacities

Total time possible*
Installed Capacity:
The maximum achievable = Std. cycle time per unit
output under the best
achievable standard
* Total time possible = calendar time
operating conditions

Production Capacity:
The maximum achievable
output during the scheduled
operating time under the
best achievable standard
operating conditions

Available Production Time*

Std. cycle time per unit

*Available Production Time =

Scheduled Time Scheduled Downtime

Demonstrated Capacity:
Available Production Time*
Actual (vs. Standard)
The historically proven
=
Cycle Time
output of the equipment
*Available Production Time =
* Available Production Time = Scheduled Time Scheduled Downtime
Scheduled Time Scheduled Downtime
68

Trim Sheet Example

Installed Capacity: 1440 min. x 60 sec/min.
15 sec/coil*

= 5760 coils

Production Capacity:

= 1680 coils

1 8 hour shift
30 min. for lunch
2-15 min. breaks
No other sched. DT

480 min-60 min.

15 sec/coil

= 680 coils

Demonstrated Capacity:
*Assuming no tool changovers are required

69

OEE Study Steps

3.

Define OEE study sheet downtime categories (e.g., run, equipment

downtime, changeover) and observe 5 cycles or 1 hour, whichever is
less, to verify OEE study sheet categories and triggers

70

3. Time
Enter time scale for
study along this axis

1. Prepared By, Area, Date and Time

Enter observers name, area that will be
studied, date, time.

2. Standard Cycle Time

Enter standard cycle time
for equipment/product
being studied.

6. Actual
Enter actual units
produced during
the time interval
4. Plan
Enter scheduled
units to be
produced during
each time
interval at
standard cycle
time
5. Categories
Enter other
categories
observed during
study as they
occur. Examples
could include
changeover,
equipment
problems, etc.
7. Comments
Note any problems or
ideas during observation.

8.
Enter the total time for
each category.

10. OEE Calculation

Use data from the chart, standard
cycle time, and units produced to
calculate OEE

9. Totals
Enter total units produced during
study as well as the number of
those classified as good
71

Trim Sheet Example

Trim Sheet OEE Study Sheet Categories
Date:
Shift:

8:17
8:16

8:19
8:18

8:21
8:20

8:23
8:22

8:25
8:24

8:27
8:26

8:29
8:28

8:30

Run

Wait

Rework

Load/Unload
(not needed)
Changeover
(new spec)
Equipment Problems

Turnaround
(same spec)
Scheduled
Maintenance
Lunch & Breaks

Output: _________

Scrap: _________

72

OEE Study Steps

4. Design observation schedule, number of
observers required, and prepare study sheets to
get a representative sample based on:

Number and layout of machines

Length of cycles (prefer 10 cycles minimum)

Impact of different products on OEE

Tip: draw a layout of the area showing

machines and proposed observer locations

73

Trim Sheet Example

18 minute video of trim sheet operation
2 minutes to review operation
16 minutes of observation (approx. 30 cycles)

Capture

Run Time
Changeover Time (last good to first good coil)
Turnaround Time (same spec)
Downtime

74

OEE Study Steps

5.

Perform observations
(at least 10 cycles minimum)

Trim Sheet Example

Lets watch the video

75

Trim Sheet Example

Trim Sheet OEE Study Sheet Categories
Date:
Shift:

1st shift

8:17
8:16

8:19
8:18

8:21
8:20

8:23
8:22

8:25
8:24

8:27
8:26

8:29
8:28

8:30

Run

Wait

10 sec.

20 sec.

60 sec.

110 sec.

220 sec.

Rework

Load/Unload
(not needed)

Changeover
(new spec)

150 sec.

Equipment Problems

Turnaround
(same spec)
Scheduled
Maintenance

180 sec.

10 sec.

60 sec.

140 sec.

Lunch & Breaks

Output:26
_________

Scrap: _________
0.
76

OEE Study Steps

6. Summarize data by category for each machine
and the overall system
Total = 960 seconds

Trim Sheet OEE Study Sheet Categories

Date:
Shift:

1st shift

8:17
8:16

8:19
8:18

8:21
8:20

8:23
8:22

8:25
8:24

8:27
8:26

8:29
8:28

8:30

Run

Wait

RUN = 420 seconds

10 sec.

20 sec.

60 sec.

110 sec.

220 sec.

Rework

Load/Unload

Changeover
(new spec)

C/O = 330 seconds

150 sec.

Equipment Problems

Turnaround
(same spec)
Scheduled
Maintenance

180 sec.

Equip. DT = 70 seconds

10 sec.

60 sec.

Turnaround = 140 sec.

140 sec.

Lunch & Breaks

Output:26
_________

Scrap: _________
0.

77

OEE Study Steps

7. Calculate the OEE for each machine and
the overall system
Shop floor units based OEE =

Good Units
Reqd Units at Standard

Components based OEE = Availability x Performance Rate x Quality Rate

78

Trim Sheet Example

Shop floor units based OEE =

Good Units
Reqd Units at Standard

26 units x 100
64units

40.6%

Components based OEE = Availability x Performance Rate x Quality Rate

420 sec. X15 sec.x 26 coils X 26 coils-0

960 sec.
420 sec.
26 coils

x 100

= 40.6%

79

OEE Study Steps

8. Document problems, root causes, and

countermeasures
Problem Countermeasure Sheet
No.

Problem / Opportunity

Countermeasure

Effect

Who Will
By When
Implement

Remarks

80

OEE Study Steps

9. Develop improvement strategy based on
leverage points observed, supported by the
business case and OEE data (A3 format)
ABS Plan - Format
The A-3
1. Background /
Business Case

3. Target
Condition

2. Current
Condition

4. Kaizen Activities
Action Timeline
Measures

81

2. Area and Equipment

Enter the area and equipment identifier.

3. Month and Year

Enter the Month and Year for which this chart
will apply.

4. Prepared By
Enter the name(s) of who prepared the
chart.

8. OEE Plot
Chart OEE on the
graph by day

% OEE

1. Crew and Shift

Enter crew and/or
shift for which this
chart will apply.

6. Actual
Enter actual good
units produced that
day for this
crew/shift
5. Plan
Enter number of
planned units to
produce that day for
this crew/shift

OEE

7. OEE
Calculate OEE as: OEE = (Actual good units)/(Planned Units)

82

Traditional vs. ABS Approach to

Instability
ABS:

Traditional:
Maintain large
inventories

Add more shifts or work

overtime

Expose problems

vs.

Seek out root cause

of problems
Fix problems 1x1

Purchase more
equipment
OEE enables an ABS approach to achieve stability
83

20 Questions
Alcoa Operations Management
Consulting

84

1.
2.
3.
4.
5.
6.
7.
8.

9.

20 Questions

Why do an OEE study?

When is an OEE study performed?
Why are OEE studies important?
Who should perform an OEE study?
Does OEE apply to all types of equipment?
(True/False) Availability is the % of available scheduled time
that a machine is running.
(True/False) Machine set ups would not be included as an
OEE loss.
(True/False) For an OEE study, you should observe at least
10 cycles.
(True/False) If a machine loads or unloads itself, the
load/unload time is not considered an OEE loss even though
the machine is not processing material.
85

10.

11.
12.
13.
14.
15.
16.
17.
18.
19.
20.

20
Questions
What effect does making twice as many changeovers have on
OEE?
What 3 factors make up OEE?
What is Rate of Operation?
Who is responsible for unused capacity?
How is Rate of Operation based on customer demand?
How do you decide where to perform an OEE study?
What is the value of performing an OEE study?
Can OEE be used by operators as a means of exposing
problems during normal scheduled run time?
Do OEE losses pertain to man, machine, material or
methods?
Where do you go to learn the OEE of a particular piece of
equipment?
Are you ready to perform an OEE study?
86

20 Questions - Answers
1. OEE studies expose problems with equipment capacity and
stability.
2. Early in an improvement project
3. Exposes root cause to problems, identifies potential
countermeasures
4. Line Managers, Operators, Mechanics and ABS Resources
5. Yes
6. True
7. False
8. True
9. True

87

20 Questions - Answers

10. OEE decreases if the changeover time is not reduced

proportionally
11. Availability, Performance Rate, Quality Rate
12. % of capacity being utilized, as determined by customer
demand.
13. Top management and sales
14. Rate of Operation = Demand / Production Capacity (at
standard cycle time)
15. Its business case driven, typically performed on the system
constraint.
16. Requires you to go to the floor and see.
17. Yes OEE = Total good units produced divided by planned units
18. All
19. On the shop floor
20. Lets do it!
88

Appendix
Alcoa Operations Management
Consulting

89

Production Capacity
Calculation Example
Alcoa Operations Management
Consulting

90

Production Capacity

Calculating Operational Availability begins

with understanding equipment capacity
Production Capacity must be calculated
based on standard cycle times
The Production Capacity Sheet is used to
perform this calculation

91

Production Capacity
The maximum achievable output during the scheduled operating
time under the best achievable standard operating conditions

Available Production Time

Production
Capacity

Standard Cycle
Time to Complete
A Piece *
* Including allocated tool changeover time

92

Production Capacity Sheet

Used in processes that incorporate machinery to

determine production capacities.
Identifies bottlenecks focusing tool for Machine
Kaizen
Sets the standard for completing the
Standardized Work Combination Table
Requires:
Standard Operating Procedure
Equipment specifications

Machine / Process
Processing times
93

Production Capacity Sheet

94

Example
420/shift

840 min

BOTTLENECK:

____units
units

MACHINE

CD 300

20

40

00

*standard cycle time

10000

10 00

839

95

Auxiliary Slides
Alcoa Operations Management
Consulting

96

Rule 1 - Activity

C
7

C
5

3
1

Low
OEE!

vs.

3
1

Low OEE prevents operators from following highly specified work

97

Rule 2 - Connection

A1
Low
OEE!

B
A2
vs.
A

Low OEE makes direct, binary, paced connections between customers

and suppliers very difficult
98

Rule 3 - Pathway

A1

B1

A2

B2

Low
OEE!

Flow
collision!

Low OEE prevents products from flowing along simple, pre-specified

and fixed pathways
99

Rule 4 - Improvement

Missed output
in 1 hour

vs.

Missed output
in 1 hour

Low OEE allows too many variables, making problem-solving difficult

100

OEE Performance Rate Factor

OEE =

Availability

Performance Rate

Quality
Rate

Run-speed efficiency x Net Operating Rate

Actual Run Time
Sched Time Scheduled Downtime

Good Units

Std. Cycle Time

Total Units

Actual Cycle Time

Total Units
(e.g., in a shift) X

Actual
Cycle Time

Scheduled Time All Downtime

(losses due to minor stoppages)

101

Standard Forms
Alcoa Operations Management
Consulting

102

103

3. Time
Enter time scale for
study along this axis

1. Prepared By, Area, Date and Time

Enter observers name, area that will be
studied, date, time.

2. Standard Cycle Time

Enter standard cycle time
for equipment/product
being studied.

6. Actual
Enter actual units
produced during
the time interval
4. Plan
Enter scheduled
units to be
produced during
each time
interval at
standard cycle
time
5. Categories
Enter other
categories
observed during
study as they
occur. Examples
could include
changeover,
equipment
problems, etc.
7. Comments
Note any problems or
ideas during observation.

8.
Enter the total time for
each category.

10. OEE Calculation

Use data from the chart, standard
cycle time, and units produced to
calculate OEE

9. Totals
Enter total units produced during
study as well as the number of
those classified as good
104

Production Capacity Sheet

*standard cycle time

105

Problem Countermeasure Sheet

Problem Countermeasure Sheet
No.

Problem / Opportunity

Countermeasure

Effect

Who Will
By When
Implement

Remarks

106

Standard A3 - Proposal
ABS Plan - Format
The A-3
1. Background /
Business Case

3. Target
Condition

2. Current
Condition

4. Kaizen Activities
Action Timeline
Measures

107

OEE TREND CHART

AREA:
EQUIPMENT:

MONTH:
YEAR:

PREPARED BY:

%OEE

CREW:
SHIFT:

Date

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

Actual
Plan
OEE
% OEE = (ACTUAL GOOD UNITS DIVIDED BY PLANNED UNITS AT STANDARD CYCLE TIME) X 100

108

30

31