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LEAN MANUFACTURING

Department of Mechanical EngineeringFaculty: VIJAYANAND.VApr 7, 2023 08M017

CLASS.

BE: 6M-G2 1

PILLARS OF TPM

OVERALL EQUIPMENT EFFECTIVENESS

BATCH: E

Roll Nos: 09M204, 09M210, 09M221

Coordinator’s E-mail: [email protected]

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CLASS.

BE: 6M-G2 2

The two top-level metrics

• Overall equipment effectiveness (OEE) and total effective equipment performance (TEEP) are two closely related measurements that report the overall utilization of facilities, time and material for manufacturing operations. These top view metrics directly indicate the gap between actual and ideal performance.

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CLASS.

BE: 6M-G2 3

• Overall equipment effectiveness quantifies how well a manufacturing unit performs relative to its designed capacity, during the periods when it is scheduled to run.

• Total effective equipment performance (TEEP) measures OEE against calendar hours, i.e.: 24 hours per day, 365 days per year.

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LEAN MANUFACTURING


CLASS.

BE: 6M-G2 4

Goals• Learn about OEE and how to use it to improve

– overall efficiency– throughput, and quality in a plant, office, or service environment

– Learn how to use OEE to• Improve real-time efficiencies• Evaluate capital expenditures• Compare one operation to another

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CLASS.

BE: 6M-G2 5

Imagine a new car

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CLASS.

BE: 6M-G2 6

Ideally……

• We want our systems to operate 100% of the time at 100% of our best demonstrated speed producing 100% good quality product/services

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CLASS.

BE: 6M-G2 7

Reality is …

• Our systems are not ideal … it’s unreasonable to expect to operate all the time at best ever speeds producing nothing but good product/services

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LEAN MANUFACTURING


CLASS.

BE: 6M-G2 8

Why is OEE so important?

• Companies make money by adding value to materials and services to make products customers want

• As most companies use machines, people, and production lines to add value to their products, it’s important they perform efficiently

• OEE is a metric used in Lean and Six Sigma to indicate how efficiently business systems are performing

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LEAN MANUFACTURING


CLASS.

BE: 6M-G2 9

• OEE helps us to maximize

1. Performance … speed and/or utilization

2. Availability … uptime

3. Yield … quality

• Allows us to compare processes across plants, divisions, offices, and companies

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LEAN MANUFACTURING


CLASS.

BE: 6M-G2 10

Availability (Uptime)Availability: A comparison of the potential operating time and the time in which the system is actually making products or providing services.

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CLASS.

BE: 6M-G2 11

Yield

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CLASS.

BE: 6M-G2 12

Performance (Utilization or Speed)

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LEAN MANUFACTURING


CLASS.

BE: 6M-G2 13

Overall Equipment/Service Effectiveness (OEE)

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LEAN MANUFACTURING


CLASS.

BE: 6M-G2 14

OEE: How it’s Calculated

• OEE = Performance x Availability x Yield

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LEAN MANUFACTURING


CLASS.

BE: 6M-G2

• The following is an 8 hour shift with two scheduled 15 minute breaks and a 30 minute lunch break during the hypothetical production process

15

TOTAL PEICES 19,271

SHIFT LENGHT 8 * 60 = 480 MINUTES

BREAKS 2 * 15 = 30 MINUTES

LUNCH 30 MINUTES

DOWN TIME 47 MINUTES

IDEAL RUN RATE 60 PIECES PER MINUTE

REJECT PEICES 423 PEICES

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CLASS.

BE: 6M-G2

CALCULATION

VARIABLE FORMULA CALCULATION RESULT

PLANNED PROD. TIME

Total time – shift breaks

480 - 60 420 minutes

OPERATING TIME Planned prod. Time – down time

420 - 47 373 minutes

GOOD PEICES Total pieces – rejected pieces

19271 - 423 18,848 pieces

16

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CLASS.

BE: 6M-G2 17

RESULTS

0EE FACTOR FORMULA CALCULATION RESULT

AVAILABILTY Operating time / planned prod. Time

373 / 420 0.8881

PERFORMANCE (total pieces / operating time) / ideal run rate

(19271/373) / 60 0.8611

QUALITY Good pieces / total pieces

18848 / 19271 0.9780

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CLASS.

BE: 6M-G2 18

Overall Equipment Effectiveness = 0.8881 * 0.8611 * 0.9780 = 0.748

= 74.8 %

For a world class plant,

OVERALL OEE 85%

AVAILABILITY 90%

PERFORMANCE 95%

QUALITY 99.9%

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CLASS.

BE: 6M-G2 19

• This is a good plant, yet the OEE calculation gives us insight that even better results might be achieved by attacking performance and availability issues

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LEAN MANUFACTURING


CLASS.

BE: 6M-G2 20

Improving OEE• Our approach should incorporate quantitative

expectations, milestones, and a firm schedule for improvement.

• A proven, effective way of quickly improving OEE is through a kaizen improvement event … the kaizen is also a great way to also increase worker/supervisor buy-in

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CLASS.

BE: 6M-G2 21

Summary• OEE helps maximize throughput efficiency.

• It focuses on Performance, Availability, and Yield

• Before capital expansions, check your OEE!

COURSE CODE. PAGE

LEAN MANUFACTURING


CLASS.

BE: 6M-G2 22

Thank you

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