Charles Brassard, P. Eng., M.B.A. President of Laubrass Inc. Measuring Effective Work Performance MUWG Workshop MAXIMO Utility Working Group What Would You Do First? What Would You Do First? MEASURE What is the first thing you do to maximize a process? MEASURE Value Adding Activities What is a Value Adding Activity? Value Adding Activities: Time that is spent transforming or modifying an actual product or service that is sold What is a NON- Value Adding Activity? Non-Value Adding Activities: WASTE!!! Activities that take up time, resources or space without adding any value to the actual product or service that is sold. Non-Value Adding Activities: In an average company, how much of this time is dedicated to value added activities? 0%10%20%30%40%50%60%70%80%90%100% Total time spent on manufacturing a product or delivering a service 0%10%20%30%40%50%60%70%80%90%100% Total time spent on manufacturing a product or delivering a service Only 5% to 15% of the total time spent is on Value Adding Activities NON VALUE ADDING ACTIVITIES What about a world class company? 0%10%20%30%40%50%60%70%80%90%100% Total time spent on manufacturing a product or delivering a service 50% VA Time that you can optimize What does this mean? Opportunity to Improve! VANVA Average VANVA Elite How? MEASURE! OEE O verall E quipment E ffectiveness Overall Equipment Effectiveness: Framework for measuring the efficiency and effectiveness of a process, by breaking it down into three factors: Availability Performance Quality Possible Availability of Equipment = 100 hours 0 20hrs 40 hrs60hrs 80hrs 100 hrs 20 hrs/day 5 days/week CYCLE : 1 week Overall Equipment Efficiency Possible Availability of Equipment = 100 hours 0 20hrs 40 hrs60hrs 80hrs 100 hrs Availability OEE: Availability Availability = 80% 80 functioning hours / 100 available hours = 80% Down Time Non Value Added Down Time Loss: Break Downs Setup and Adjustments Small Stops Performance = 75% 80 hours x 75% = 60 hours Possible Availability of Equipment = 100 hours 0 20hrs 40 hrs60hrs 80hrs 100 hrs Performance OEE: Performance Availability = 80% Down Time Non Value Added Speed Loss: Machine Wear Misfeeds Operator inefficiency Speed Loss Actual Run Rate: 375 pieces/hour Ideal Run Rate: 500 pieces/hour Quality = 95% 60 hours x 95% = 57 hours Performance = 75% Possible Availability of Equipment = 100 hours 0 20hrs 40 hrs60hrs 80hrs 100 hrs Quality OEE: Quality Availability = 80% Down Time Non Value Added Quality Loss: Rejected Products Speed Loss R Reject Quality = 95% Performance = 75% Possible Availability of Equipment = 100 hours 0 20hrs 40 hrs60hrs 80hrs 100 hrs OEE: Percentage Availability = 80% Down Time Non Value Added Speed Loss R Reject 57% OEE = 80% X 75% X 95% = 57% In an average company, What OEE percentage do you think they have? In an average company the OEE percentage is just: 20% - 50% What about a world class company? World Class Companies OEE= 85% Availability = 95% Performance = 95% Quality = 95% Case Study Machine works 24 / 7 Does not produce enough to meet customer demands PROBLEM: Case Study Buy a new machine for $2.5 million? SOLUTION: Case Study SOLUTION: MEASURE! Determine where they are losing time. How? OEE Inspector Can now meet customer demands RESULT: Case Study Machine only needs to work 2 shifts/ day, 5 days a week Improved Production Time Two ways to Measure: Time Studies Work Sampling Tools to facilitate performance measurement More Info