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(+)+(+)
(+)+(+)
(+)+(+) The Lean Changeover e-letter
(+)+(+)
(+)+(+) Published monthly by Changeover.com
(+)+(+)
(+)+(+) Written by John R Henry, CPP
(+)+(+)
(+)+(+) FEBRUARY 2009
(+)+(+)
(+)+(+) Replies, inquires and feedback to
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What do you plan to do in 2009 to reduce changeover losses? Is this
the year you are finally going to get serious?

There is no better way to kickstart a changeover program than my
"Changeover made ESEE" workshop. This 2 day workshop is a goldmine of
practical information as well as a hands-on putting the info to work
in your plant.

Call 787-550-9650 or e-mail john@... NOW to schedule a
session in your plant.

Line downtime costs $0000s/hour. How many dollars can you afford to waste?


IOPP PACKAGING MACHINERY COURSE: Don't forget that next month I will
be teaching the IOPP packaging machinery course in Chicago. There are
still a few (very few!) seats open. If you want to learn the basics
about a wide range of packaging machinery, sign up now. Frain
Industries www.fraingroup.com is providing the venue as well as
actual machinery for some hands on experience.

For more information visit:

http://www.iopp.org/i4a/pages/index.cfm?pageid=1373

If you have any questions, feel free to drop me a note at john@...

SOME THOUGHTS ON...

OEE

OEE is a term that has been on many lips in the past year or two. It
stands for, depending on who you listen to, "Overall Equipment
Effectiveness" or "Overall Equipment Efficiency". I used the
scientific method to settle it. I went to Google. Based on number of
hits for each phrase, Effectiveness seems to be the more popular
term. I think this is appropriate as manufacturing is more about
being effective, defined as doing the right thing than efficient,
doing things right. That is, if you are making the product that your
customer wants, you are being effective. If you are making it well,
obtaining a high proportion of output to input, you are doing it efficiently.

OEE is a useful tool because it gives a single number by which to
monitor line performance. If this number of calculated uniformly, it
can be used to compare the performance of differing lines and
processes. It would be nice if there were a single agreed standard
for OEE and therein lies the danger of relying excessively on it.
Many companies use it but each seems to want to put its own twist on
how they define and measure the various components. With OEE as with
any other term, it is more important that everyone in an organization
use the same definitions than what those definitions are.

So what is OEE?

OEE is composed of 3 metrics: Availability, Performance and Quality.
Each measures a different aspect of an operation. The percentage
number associated with each can be useful in improving performance.
OEE is the product of Availability X Performance X Quality and is
expressed as a percentage.

OEE availability is the percentage of time spent producing relative
to the scheduled available time. A plant running a single shift (480
minutes) operation might schedule 60 minutes for meals and breaks.
Theoretical availability is thus 420 minutes. If the line normally
shuts down during these breaks, availability should not be penalized.
If it normally continues running, perhaps using relief workers, but
due to absences on a particular day needs to stop, this lost time
will count against availability. As an example, assume that on a
given day downtime from various causes such as cleanup and setup,
lack of materials or documentation or plant meetings, is 50 minutes.
Total availability is 420-50 or 370 minutes. OEE availability is
370/420 or 88%.

OEE performance is the actual running speed relative to the
theoretical running speed. This is generally the manufacturer's rated
speed. A standard line speed of 200PPM, over the 370 minutes
available, should produce a total of 74,000 units. If it produces
68,000 units over the shift, its OEE performance is 92%. Note that
this is total production of both good and rejected products, not just
good production.

Performance is affected by minor stoppages, typically less than a
minute or two. Typical stoppages will include clearing machine jams
or the need to make minor adjustments. In some cases it may be
necessary to run a line more slowly than normal due to marginal
components or product.

Quality must be factored in because, at the end of the day, what is
really important is not total production but total good production.
OEE Quality is the percentage of good production relative to total
production. If total production was 68,000 units but 1,000 were
rejected, the quality metric is 68,000 divided by 67,000 or 98%. A
reject under OEE is defined as any product that does not make it
through the process on the first pass. Products that are reworked or
products that are rejected in error and later accepted are still
treated as rejects under OEE.
Our hypothetical line thus has an overall OEE of:
0.88(availability) X 0.92(performance) X 0.98(quality) = 0.79 = 79%

OEE is an excellent tool since it provides a single number by which
to monitor line performance. By its nature, it allows comparison
across different lines or processes within a plant or even between
plants in the same company. It should allow comparison between plants
of different companies or even industries. A problem is that there is
not a single agreed upon standard. Different companies will each put
their own twist on how they calculate OEE. When this happens,
comparisons become meaningless. In other words, when comparing OEE
between companies, or even within the same company, be sure that it
is calculated using the same methodology. If not, it is apples and
oranges and comparisons are meaningless.

TIP OF THE MONTH

OEE RESOURCE

If you are into or getting into OEE, Vorne Industries has several
tools that are very helpful. Most important is their "Fast Guide to
OEE". This is a 27 page tutorial on OEE that makes an excellent
starting point for those wanting to learn more. They also publish an
Excel template that, upon plugging in your data, will automatically
calculate OEE. Vorne also manufactures OEE monitors that display OEE,
its 3 components as well as other metrics in real time. For more
information, visit their site at www.oee.com Tell them John Henry sent you.



Best,

John R Henry CPP
www.changeover.com
787-550-9650
"All progress is made by a lazy person looking for an easier way." -
Lazarus Long
Best,

John R Henry CPP

www.changeover.com
787-550-9650

"All progress is made by a lazy person looking for an easier way." -
Lazarus Long