OEE, TPM RCMOEE, TPM and RCM

KPP202Antti Salonen

Productive time Unproductive time

How a production shift may look!

Planned production time

Start-up problem

Set-up

Break-downs

Planned stopps

Cleaning

Period with small-stops

Period with reduced speed

Production

Purpose:

• Show the disturbances that reduces the productivity of the

OEEOverall Equipment Effectiveness

• Show the disturbances that reduces the productivity of the equipment

• Show how effective the equipment is used by measuring loss factors

• Show that improving actions are adequate.

• Aid in planning of resources and workload

The six big losses

• Failures and break-downs

• Set-up and adjustments

• Idling and minor stoppages

• Reduced speed

• Defects and rework

• Start-up losses

X X

What is OEE?

Quality ratePerformance rateAvailability

X X

The OEE-value indicatesthe total effectiveness in production

Availability =

Planned prod. time – Unplanned stop time

Planned prod. time

Scheduled working time

Planned production time

Available operative time

Planning related stopps

Un

pla

nn

ed

sto

pp

s

Set-up and adjustments

Failures and breakdowns

OEE calculationsPlanning factor =

Scheduled time – Planning related stop time

Scheduled time

Value adding

operative time

Overall Equipment Effectiveness (OEE)

= Availability x Performance rate x Quality rate

Performance rate =

Bought CT x items produced

Available operative time

Quality rate =

Items produced - Defects

Items produced

Netoperative

time

Def

ects

Un

pla

nn

ed

Sp

eed

lo

ss

Idling andminor stoppage

Reduced speed

Defects andrework

Start-up losses

adjustments

= (Planning factor) x

Availability = Planned production time – unplanned stop time 400 min - 90 min

Planned production time400 min

= 0,775=

OEE calculations

Scheduled working time – planning related stop time

Scheduled working timePlanning factor =

480 min - 80 min

480 min

= 0,83=

Quality rate = Items produced – defect items 500 pieces - 20 pieces

Items produced 500 st= 0,96=

Planned production time400 min

Performance rate = Bought cycle time x items produced 0,6 min/piece x 412 pieces

Available operative time 310 min

= 0,797=

PfOEE = 0,83 x 0,775 x 0,797 x 0,96 x 100 (%) = 49,2%

OEE = 0,775 x 0,797 x 0,96 x 100 (%) = 59,3%

Three levels of measurement

How to measure ?

Depending on purpose and aim with the measuring, the following three levels may be used:

Level 1 Total utilization = Pftot x A x P x QLevel 1 Total utilization = Pftot x A x P x Q

This level indicates how a plant is utilized compared to maximum available time (24hrs/day, 365 days/year)

Level 2 Asset effectiveness = Pf x A x P x Q

This level indicates how effective an asset is used regarding planned working hours

Level 3 Equipment effectiveness = A x P x Q

This level indicates how effective a specific equipment is used.

Calculation of Pftot

Theoretical available time (24h/day, 365 days/year) – planning related stop timeTheoretical available time (24h/day, 365 days/year)

OEE: Total planning factor

Theoretical available time (24h/day, 365 days/year)

Planning related stop time is time loss that doesn’t affect the equipment effectiveness.

For example hollidays, breaks, meeting time, education, cleaning, waiting time due to surrounding equipment, PM, planned modifications, lack of orders, personell or material.

Note. The use of 24h/day, 365 days/year for definition of Theoretical available time is common within process industries where heavy investments occur.

Calculation of Pf

Theoretical production time (scheduled) – planning related stop time

Theoretical production time (scheduled)

OEE: Planning factor

Theoretical production time (scheduled)

Theoretical production time is the scheduled production time when the facility is manned.

E.g. 3-shift (ca 110 hours/week), daytime (40 hours/week)

Planning related stop time is time loss that doesn’t affect the equipment effectiveness.

For example hollidays, breaks, meeting time, education, cleaning, waiting time due to surrounding equipment, PM, planned modifications, lack of orders, personell or material.

Availability = Planned production time – unplanned stop time

Planned production time

OEE calculations

Theoretical production time – planning related stop time

Theoretical production timePlanning factor =

Quality rate = Items produced – defect items

Items produced

Planned production time

Performance rate = Bought cycle time x items produced

Available operative time

PfOEE = Pf x A x P x Q x 100 = %

OEE = A x P x Q x 100 = %

OEE: CalculationScheduled working time 4x16h + 14h = 78h

Planning related stops 2x5x0,5h + 1h + 5x0,2h = 7h

Planning factor (Pf) (78-7h) / 78 = 0,910 Pf = 91,0%

Planned production time 78h-7h = 71h

Unplanned stop time 1,5h + 3,2h + 1,9h = 6,6h

Availability (A) (71 – 6,6) / 71 = 0,907 A = 90,7%Availability (A) (71 – 6,6) / 71 = 0,907 A = 90,7%

Available operative time 71h – 6,6h = 64,4h

Bought cycle time 6 min / 60 = 0,1h

Produced items 523 st

Performance rate (P) (0,1x523) / 64,4 = 0,812 P = 81,2%

Scrap 3 st.

Quality rate (Q) (523 – 3) / 523 0,994 Q = 99,4%

PfOEE 0,910x0,907x0,812x0,994 0,666 PfOEE = 66,6%

OEE 0,907x0,812x0,994 0,732 OEE = 73,2%

The following has to be explored:

� Manual loading time included?

Limiting factors affecting the cycle time?

Defining Cycle time

� Limiting factors affecting the cycle time?

� Can several products be produced during one cycle?

� Do different products have different cycle times?

Defining bought cycle time

� Cycle time according to equipment specification

� Cycle time according to product specification

� Lowest CT in similar equipment

� Lowest CT tested in the equipment

� Theoretically calculated CT

� Lowest measured CT

� Actual CT recalculated with ambition

Performance rate, P- when producing products with different CT’s

ProductTheoretical CT, CTT (min/piece) 0,6 0,7 0,8 0,9

P1 P2 P3 P4

Produced amount, P (piece)

CTT x P (min)

Sum CTT x P (min)

Available operative time*, T.O.T (min)

P = (Sum CTT x P) /T.O.T (%)

0,6 0,7 0,8 0,9

100 150 50 50

60 105 40 45

250

300

83%

* Planned production time – Unplanned stops

Increased OEE leads to….

� Less disturbances which in turn may lead to

� Improved planning ability

� Reduced risk of quality problems� Reduced risk of quality problems

� More time for developing work

� Released capacity which in turn may lead to

� Alternative to capacity investments

� Increased flexibility

� Decreased operative time

� Decreased number of equipments

Time for a break?

OEE in Swedish industry (2002)

40

50

% OEE Interval60%

Average

80%

88%

Improvement potential

10

20

30

40

35-45 45-55 55-65 65-75 75-85 85-95 %

OEE

Electronics Power

Chemical

P & P

SteelMining

Manufacturing industry

80%

Practically achievable

Average OEE = 60,4%

Utilization

Results from a study of 30 Swedish sub suppliers in

automotive industry (Nutek, 2008)

For comparison, a number of similar companies in other

countries were studied:

Average OEE in other countries = 77%

This means that forreign companies have 27,5%

higher productivity in their production equipment!

Average OEE = 60,4%

Utilization

More findings from the study of 30 Swedish sub-suppliers

in automotive industry (Nutek, 2008)

39% of the companies measure and analyze time-loss and cause of failures

86% of the companies perform systematic preventive maintenance

14% of the companies measure and analyze time-loss and cause of disturbances

25% of the companies perform CBM

My own observations

Poor utilization of the possibilities of analyzing data from CMMS

Most companies fail to regard dependability aspects when investing

Few companies use systematic RCA (Root Cause Analysis)Few companies use systematic RCA (Root Cause Analysis)

Few companies use systematic maintenance concepts

Few companies measure the cost of lost production

TPM – what’s that?

• Total Productive Maintenance

• Total Process Management

• Total Production Management

• And so on….

TPM - definition

• TPM can be defined as a systematic work • TPM can be defined as a systematic work method aiming to develop disturbance free processes at lowest possible costthrough the commitment of all co-workers(LCP-Consultants)

TPM as a philosophy

– Focuses on daily maintenance in manufacturing industries, it is built on total employee involvement, born in the Japanese automobile industry.

TPM – Total Productive Maintenance

• Total Effectiveness

• Total Preventive Maintenance

• Total Commitment

Why TPM?

• Replace routine with development

• Increased commitment from all co-workers

• Continuous improvements

• Foreseeable operations

• Improved safety and environment

TPM Structure

Ear

ly e

quip

men

t m

anag

emen

t

Saf

ety,

hy

gie

ne

and e

nvir

onm

ent

Evaluation and new goals

Preparation Implementation

Effectiveness

Continuous improvements

Autonomous maintenance

Planned maintenance

Ear

ly e

quip

men

t m

anag

emen

t

Qual

ity

mai

nte

nan

ce

Eff

ecti

ve

adm

inis

trat

ion

Saf

ety,

hy

gie

ne

and e

nvir

onm

ent

Education

Organisation and pilot

Policy and goals

Develop a master plan

Management’s decision

Education and training

Kick

-off

Group activities

Cross functional improvement group

Autonomous maintenance group

Target oriented cross functional group

Quality improvement tools

Identify, prioritize and analyze failures7QC/QM

FTA

Identify and evaluate potential weaknesses

Identify causes of failures and their logic connections

Reduce all chronic loss to zeroPM-analysis

FMEA

Autonomous maintenance

Autonomous maintenance• Teach the operators to react on cause instead of result

• By increased kompetence and understanding the operators may:– Eliminate minor stoppages

– Prevent break-downs– Prevent break-downs

– Secure implemented improvements

– Improve quality, safety, and environment

• In the long run operators start to perform maintenance tasks

• Daliy inspections replaces repair and low frequent controls

• Implemented through seven well-defined steps

• Takes long time to implement, often years

Description Competence

Repair skills

The seven-step ladder

1. Basic cleaning and order

2. Counter meassures at the problem source

3. Standards for cleaning and lubrication

4. General inspection training

5. Autonomous inspection

6. Organize the work environment

7. Autonomous maintenance

Equipment

focusing step.

Secures the basic

condition of the

equipment

Focuses the operators.

They learn advanced

inspection and

maintenance techniques

Factory focusing step.

From maintenance to

control.

Repair skills

Understands the

relation between

maintenance and

product quality

Understands the

functions and structure

of the machines

Can find defects and

understand the principles for

improvements of the

equipment

Planned maintenance

Maintenance planning

Maintenance control

Inform

ation feed

back

Activities for improved

maintenance effectiveness

Corrective Maintenance

Preventive Maintenance

Restoring M

aintenance

Improvem

ent Maintenance

Condition Based M

aintenance

Activities for improved OEE

Spare part control

Economy control

Implementation of planned maintenance leads to:-Increased MTBF and MTBM-Decreased MTTR, MWT and M-Closer to 0-faults, 0-stops and 0-accidents

Inform

ation feed

back

Activities for improved

maintenance effectiveness

Corrective Maintenance

Preventive Maintenance

Restoring M

aintenance

Improvem

ent Maintenance

Condition Based M

aintenance

Early equipment management

LCCBasic properties

Acquisition process

Project

Goal and requirements

The process has to goals:•To reach stable, full speed production at start-up.•To, as far as possible, meet the detailed

Early detection of problems

Experience developmentMP-design

Project Structure and process thinking

The included activities are aiming for new equipment to be:•Reliable and producing non defective products.•Easy to mend and set up, and fast to start after set-up changes.•Easy to maintain, and fast to localize faults and repair.•Easy to clean, lubricate and inspect.•Resource efficient and safe.

•To, as far as possible, meet the detailed requirements for the equipment.

Quality maintenance

Results of TPM at VolvoProductivity Breakdowns reduced with 90%

OEE increased from 50% to 90%

MTBF increased from 30 minutes to 8 hours

Quality Scrap reduced with 90%

Cost of quality control reduced with 67%Cost of quality control reduced with 67%

Customer complaints reduced with 75%

Costs Production cost reduced with 30%

Delivery precision Capital bound in WIP and finished goods decreased with 50%

Fulfillment actual/desired delivery time increased to 90%

Delivery precision actual/promised time increased to 100%

Safety Accidents resulting in personal injuries reduced to 0

Accidents resulting in pollution reduced to 0

Commitment Ten times as many suggested improvements

Time for education and training increased with 100%

RCM has been defined as…

Reliability Centered Maintenance: a process used

RCM – what’s that?

Reliability Centered Maintenance: a process used to determine what must be done to ensure that any physical asset continues to do what its users want it to do in its present operating context.

RCM

• Reliability Centered Maintenance, RCM

– Focuses on construction and development of products and manufacturing systems maintainability and to develop an effective and maintainability and to develop an effective and resource parsimoniuos PM before the product or system is up and running, born in the aircraft industry

Reliability Centred Maintenance, RCM

• RCM is sprung from MSG (Maintenance Steering Group) that has been developed since the 1960s’, for Group) that has been developed since the 1960s’, for the purpose of the aircraft industry.

• RCM have since also been developed to be used in e.g. the power industry, energy industry, and in some cases also the manufacturing industry.

Reliability Centred Maintenance, RCM

• With RCM methodology one handle the maintenance objectives as early as in the development phase on a objectives as early as in the development phase on a consciously, rationally, and planned base.

• One analyses potential failure that can occur on the developed systems, structures, or components.

• Faults can be classified as obvious or hidden, safety critical or of considerable financial character.

RCM is basically about answering…

• …what are the functions and associated performance standards of the asset in its present operating context?

RCM

standards of the asset in its present operating context?

• …in what ways does it fail to fulfill its functions?

• …what causes each functional failure?

• …what happens when each failure occurs?

• …in what way does each failure matter?

• …what can be done to predict or prevent each failure?

• …what should be done if a suitable proactive task cannot be found?

• This can be performed through e.g. FMEA and FTA

Further reading

Total Productive Maintenance (TPM) Concepts and Literature Review, (Pomorski, 2004)Literature Review, (Pomorski, 2004)

Reliability centered maintenance, (Rausand, 1998)

A review of overall models for maintenance management, (Sherwin, 2000)