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Are you interested where to improve your production process? Overall Equipment Effectiveness is a measure of what is happening and indicates the direction in which attention should be focussed. It does not indicate the cause of the losses that occur. Based on our experience, we share a structured approach to OEE Target Setting
Do what is right, not what you think headquarters wants
or what you think will make you look good
In short Overall Equipment Effectiveness is the amount of good product made devided by the maximum amount that could have been made. The latter effectiveness is determined by comparing what a process or installation can produce with what it actually produces.
Overall Equipment Effectiveness helps to maximize the chances that you are able to hit your production targets by promoting the visibility of your manufacturing processes and providing up to date information on performance.
The calculation of OEE is as follows :
How much time was the plant operational? Availability = Time running / Total time
At what speed was the plant producing when operational? Rate = Actual production rate when running / Max rate
How much product was in spec? Quality = Goods parts made / Total parts made
Step (1). Analysis of "as is" situation
Analyze the current as is situation of Overall Equipment Effectiveness.
Step (2). Target per Pacemaker
Set initial OEE target per pacemaker
Pacemaker - the one piece of equipment in the plant that by design sets the speed of the production. All losses in the plant leading to a loss on the pacemaker need to be captured and monitized. Usually this is the most costly to replace.
Bottleneck - the piece of equipment that currently sets the pace of production. Ideally this is the pacemaker.
Step (3). Sum of the Parts
Breakdown target by category and assign to department. Each department to define plan of initiative(s) to build pipeline towards target. The site leadership team is to confirm and review pipeline towards target.
Step (4). Monitoring and Reporting
Communicate target to whole organization using visual management. Monitoring and reporting is done on the pacemakers in the production lines, not on the entire production line.
Step (5). Execution
Execute the plan of initiative(s) towards target
…with our head in the sky and feet in the mud