Posts Tagged ‘Six Sigma’
shopTALK – Episode #2: OEE for Continuous Improvement
Posted by admin in Machine Truth Blog Thursday, 24 February 2011 19:54 No Comments
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QUESTION: How do you use OEE as a measurement for Continuous Improvement? ANSWER: A lot of people are using OEE, overall equipment effectiveness is what it stands for. However, you can calculate it without having a tool like Plantnode, you can take just the total number of units that have been produced, divide it by the amount of time you’re planning to run and the expected rate the machine should be running at so you can get an OEE number. Though, it’s really a target, it’s something that you’re trying to hit, and it’s a percentage, a percentage of the expected time you were supposed to be running, and a percentage of the run speed rate that you’ve entered. After all that’s been calculated the real benefit of OEE is to understand who can I make my OEE better? How can I improve? Ultimately OEE is an efficiency measure it’s a way to measure how am I doing against where I expect to be, our best customers actually move the bar frequently throughout their lifecycle of adoption of OEE so today they might be at 95% OEE and they might change the expected rate to be higher than what it is today so their OEE drops the next day their 75%. So the OEE of “World Class 85%” or whatever the world class happens to be for your industry is merely a measurement point it’s not an end goal. You can improve and improve on where you are, you can always get better, and the way you get better is by making your standards harder and harder to achieve. What a lot of our customers that use OEE really like about the Plantnode tool is that it provides more information and a breakdown of where your losses are coming from. OEE as a number is really not that meaningful unless you understand the elements that make it up. There are those three elements of: Availability – which is your uptime percentage, your Performance – which is your run speed as a percentage of the target you are trying to hit. And your Quality ratio – Which is your good product divided by the total product, or a measure of scrap or first pass at yield. What’s interesting is, when you look at the individual components: they are mutually exclusive and collectively exhaustive, you can’t hide one really good result with another really poor one, or cover up a poor result with a really good one because the OEE will still be reflected when you multiply the two. Based on our customers experience using OEE, the value that they get out of our tool is that they’re able to use it to diagnose why their OEE gets low or why their OEE is where it is currently, they can also universally apply that same standard across all their plants in their entire enterprise. So we can help them diagnose the issue: if the OEE is low, is it because of a run speed problem?, is it because you have a lot of downtime?, and if it is downtime, what’s the reason for the downtime?, is it shortstops?, is it changeovers? Is it other unexpected maintenance problems you weren’t planning on happening? Those types of things are what really makes OEE useful is once you understand what the components are that are causing your OEE to not be what you want it to be. |
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Michael Dedrick
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