OEE overview

Feb., 2013Jae-Ho Bae, Ph.D./Professor ([email protected])

Osan University

Overall Equipment Effectiveness

OEE

mailto:[email protected]

Who am I ?

l저서 - 공급망관리: 실무적용을 위한 계획에서 운영까지, 도서출판 두남, 2010. 6. 25.

lAn Empirical Approach to Evaluate Management Performance Using a Trading Area Analysis: Focused on Small and Medium-sized Retail Business, JDS, 10(12), pp.5-11, 2012.

lDerivation of Key Process Input Variables on Film Production Line Using Analytic Hierarchy Process, JKIPE, 17(4), pp.35-44, 2012.

lMeasurement of Overall Equipment Effectiveness Considering Processing Materials and Methods, JKIPE, 16(3), pp.25-33, 2011.

lMature Market Sub-segmentation and Its Evaluation by the Degree of Homogeneity, JDS, 8(3), pp.27-35, 2010.

lA Study on the Customer Experience Analysis for the Silver Generation in the Communication Service Market using CEM, JSKISE, 32(2), pp.66—75, 2009.

lPractical setup time implementation in the roll-based manufacturing practice having print operations, IE Interface, 22(1), pp. 85-94, 2009.

lQuality control system development corresponding to the floor status for improving process control level, JKIPE, 13(2), pp. 59-67, 2008.

Books/Papers

Major ConsultingPractices

배재호 (Jae-Ho Bae, Ph. D.)

공학박사 (인공신경망, SCM, 성과관리)

2012 설비관리 학술상 (대한설비관리학회) 2012 우수논문상 (한국지식정보기술학회) 2008 우수논문상 (대한설비관리학회)

l현) 혜천대학교 물류유통경영과 교수/학과장 l현) 대한설비관리학회 이사, 편집위원

l전) EIB Korea, 상무이사 l전) PWC Consulting, Principal Consultant

l전) 아주대학교 e-Business 학부, 겸임교수 l전) 삼육대학교, 외래교수

This manuscript is written by Jae-Ho Bae. © 2013.

Who am I ?

Books/Papers

Major ConsultingPractices

배재호 (Jae-Ho Bae, Ph. D.)

공학박사 (인공신경망, SCM, 성과관리)

2012 설비관리 학술상 (대한설비관리학회) 2012 우수논문상 (한국지식정보기술학회) 2008 우수논문상 (대한설비관리학회)

l현) 혜천대학교 물류유통경영과 교수/학과장 l현) 대한설비관리학회 이사, 편집위원

l전) EIB Korea, 상무이사 l전) PWC Consulting, Principal Consultant

l전) 아주대학교 e-Business 학부, 겸임교수 l전) 삼육대학교, 외래교수

Researches or Consultations l 2012.03~2012.12: 혜천대학교 학과/계열의 성과평가 및 목표수준 제시 l 2012.12~2012.12: 대중소협력재단, Dr. R&R (과제 수행 자문) l 2010.06~2011.05: 중기청,고효율 에너지 기자재 규격에 적합한 LED 가로등 개발 l 2009.07~2009.10: 지경부, Innovation Mentor (자동차 산업 ISP 수립) PI 및 업무 혁신 부문 l 2010.07~2010.12: 율촌화학 필름공장의 CTQ 도출 및 개선 방안 수립 l 2008.01~2008.12: 율촌화학 PI Master Plan 및 PI 1차 과제 수행 l 2007.09~2007.11: KT 고객경험관리를 통한 신제품/서비스 개발 l 2006.04~2006.06: 도레이새한 PI Master Plan 수립 l 2004.04~2004.06: 율촌화학 생산 부문 PI Master Plan 수립 l 2002.03~2002.06: SKT 내부 IT 고객 지원 프로세스 개선 l 2001.07~2001.09: CCKBC (코카콜라) 생산 전략 수립 알고리즘 설계 및 구현 부문 l 2007.03~2007.08: KCC의 생산계획 알고리즘 설계 l 2006.11~2007.03: 동진쎄미켐의 스케줄링 알고리즘 설계 l 2004.08~2005.01: KAC의 스케줄링 알고리즘 설계 l 1998.09~1999.10: 산업자원부, 한국형 ERP 개발을 위한 제조부문 설계 l 1997.06~1998.06: 농심의 재고 자동 보충 시스템/수요예측 시스템의 설계 및 개발

l 1996.11~1997.06: 정보통신부, 직렬통신 설비의 원격제어를 위한 converter 개발 l 1995.11~1996.03: 과학기술처, MMI 구현 기타 시스템 구축 l동진쎄미켐의 품질관리 시스템 구축 l율촌화학의 BI 시스템 구축 l동진쎄미켐의 MES 시스템 구축 l MCM의 ERP Roll-out l율촌화학의 생산계획 시스템 구축 l율촌화학의 MES 구축 l KAC의 MES 구축 l KT의 ERP 구축 l동부전자의 ERP 구축 l팬택의 ERP 구축 l풀무원의 ERP 구축


tructure of OEE.SOEE is a time-related index NOT an unit-produced one.

Total available time

Loading TimePlanned Losses

Operting TimeDown Time

Losses

Net Operating Time Speed Losses

Valuable Operating Time

Defect Losses

1. Equipment Failure2. Setup & Adjustment

3. Idling & Minor Stoppage4. Reduced Speed

5. Defects in Process6. Reduced Yield

The Six Big Losses


Yield vs. Time Effectiveness

Good product output

=Valuable Operating Time

Theoretical attainable product output

Loading Time

?


Yield vs. Time Effectiveness

Good product output

=Valuable Operating Time

Theoretical attainable product output

Loading Time

?Even in making a product with various materials or methods


hat is the ULTIMATE Goal ofW

O.E.E.(Overall Equipment Effectiveness)

?


a highly efficient integrated system,

The ultimate objective is

NOT brilliant individual tools.

?vs.


a highly efficient integrated system,

The ultimate objective is

NOT brilliant individual tools.

!Huang, S., Dismukes, J. P., Shi, J., Su, Q., Razzak, M. A., Bodhale, R. and Robinson, D. E. (2003). Manufacturing productivity improvement using effectiveness metrics and simulation analysis, International Journal of Production Research 41(3): 513–527.


tools, not a system.

Unfortunately....

!

OEE was invented to measure the performance of


It is necessary to focus one’s attention beyond the performance of individual tools towards the performance of the whole factory.

The gain made in OEE,

!

while important and ongoing, are insufficient.


TEEP, PEE, and so on.

To overcome the limit of OEE,

!

many approaches are developed like followings;

To complement the depth

OFE, OTE, OPE, OAE, OLE, OOE, and so on.

To complement the width

TEEP: Total Equipment Effectiveness Performance, PEE: Production Equipment EffectivenessOFE: Overall Factory Effectiveness, OTE: Overall Throughput Effectiveness, OPE: Overall Plant Effectiveness, OAE: Overall Asset Effectiveness, OLE: Overall Line Effectiveness, OOE: Overall Operation Effectiveness Effectiveness


hat is your CHOIE to implement W

O.E.E.(Overall Equipment Effectiveness) ?


id you look over implementation ofD

O.E.E.(Overall Equipment Effectiveness)

?and its issues and challenges


ere are case studies of 6 companiesHCharacteristics Case A Case B Case C Case D Case E Case F

Size Large Small Large Medium-sized Large Medium-sized

Industry sector Food mfg.Mfg-building products Chemical mfg Steel mfg. Food mfg.

Engineered product mfg.

Main Process type Batch/flow shop Batch/flow shop Batch/flow shopContinuous process

Contitnuous process Line

Production system (decompuling point)

Make-to-order Make-to-stock Make-to-stock Make-to-stock Make-to-stock Make-to-order

Improvement programs Lean Lean Lean, TPM Lean, Six sigma Lean, JIT, TPM

Lean, TPM, Six sigma

Years of OEE experience 4 8 1 1 5 3


Cross-Case Analysis Result1.

Cases Drivers and motives to start using OEE

Case A ✓ Intra/inter frim benchmark

Case B ✓ Identifying waste✓ Measuring improvement

Case C ✓ Change from a reactive to proactive data driven culture

Case D ✓ Intra/inter frim benchmark✓ Identifying waste

Case E ✓ New Operations General Manager✓ Part of TPM program

Case F✓ Intra/inter frim benchmark✓ Basis for productivity✓ Communication with crews over all shifts (24/7)



Cases Critical success factors (CSF) for the implementation phase of OEE

Case A ✓ Visibility of data/target✓ Management facilitates removal of barriers

Case B ✓ Operator understanding / knowledge

Case C ✓ Operator involvement✓ Establish link from data to improvements

Case D✓ Communication of need✓ Operator education of OEE drivers✓ Removal of competing systems

Case E ✓ Simple measurement by shop floor✓ Use of data as part of TPM

Case F✓ Visibility of data✓ Up to date data✓ Operator understanding & control



Cases Difficulties, barriers or pitfalls during implementation phase of OEE

Case A ✓ Developing a culture to challenge & present ideas

Case B Shift culture from units produced to waste removal

Case C ✓ Long data entry times - Reduced motivation

Case D ✓ Culture of fear of unknown✓ Mis-understanding of calculations

Case E ✓ Training in Continuous Improvement method✓ Failure to set target rates

Case F✓ Criteria not under control✓ Long data entry times - Reduced motivation✓ Holidays & shutdown included



Cases Critical success factors (CSF) for continued use of OEE

Case A ✓ Automation of process once acceptance in place

Case B ✓ Management commitment

Case C ✓ Visibility of data/target✓ Focus on cycle of Continuous Improvements

Case D ✓ Management engagement in data discussion

Case E✓ Ownership by shop floor✓ Simple data collection✓ Management link to business objectives

Case F✓ Data benchmarked✓ Improvement in margin✓ Full order book



Cases Main benefits or specific outcomes from using OEE

Case A ✓ Enhanced: moral, asset utilization; recovery of overheads

Case B ✓ Way of monitoring improvements in efficiency

Case C ✓ Part of new culture: lean, empowerment, engagement

Case D ✓ Focuses improvements on operations CTQ family

Case E✓ Throughput increase without large Capital Expenditure✓ Reduced inventories✓ Better JIT

Case F

✓ Engaged workers✓ Best practice comparable data✓ CTQ increase✓ Environment



Cases Main future challenges in using OEE

Case A ✓ Maintaining links from measures to response

Case B ✓ Resetting the rate targets to achieve Continuous Improvements

Case C ✓ Application accross: processes, labor constraints

Case D ✓ Linkage to the business objectives

Case E ✓ Extending application to whole plant

Case F✓ Maintain through downturn✓ Data up to date✓ Continuous Improvement


id you find or establish checkpoints inD

O.E.E.(Overall Equipment Effectiveness) ?

implementing,using,and maintaining


Questions,

Q & A

Answers


Your Desire,

Our Instinct!!

Thank you for your patient listeningFeb. 2013, Jaeho BAE @ HU.
