oee

OEE Seminar Report

CHAPTER I

INTRODUCTION

In today's economy, you're expected to continuously improve your Return

on Total Capital. And as capital to build new, more efficient plants becomes

more difficult to obtain, you often have to meet growing production demands

with current equipment and facilities — while continuing to cut costs.

There are several ways you can optimize your processes to improve

profitability. But it can be difficult to understand the overall effectiveness of a

complex operation so you can decide where to make improvements. That's

especially true when the process involves multiple pieces of equipment that

affect each other's effectiveness.

One metric that can help you meet this challenge is Overall Equipment

Effectiveness, or OEE. OEE measures the health and reliability of a process

relative to the desired operating level. It can show you how well you're utilizing

resources, including equipment and labor, to satisfy customers by matching

product quality and supply requirements.

Overall Equipment Effectiveness (OEE) measures total performance by

relating the availability of a process to its productivity and output quality.

OEE addresses all losses caused by the equipment, including

Not being available when needed because of breakdowns or set-up and

adjustment losses

Not running at the optimum rate because of reduced speed or idling and

minor stoppage losses

Not producing first-pass A1 quality output because of defects and rework

or start-up losses.

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OEE Seminar Report

OEE was first used by Seiichi Nakajima, the founder of total productive

maintenance (TPM), in describing a fundamental measure for tracking

production performance. He challenged the complacent view of effectiveness by

focusing not simply on keeping equipment running smoothly, but on creating a

sense of joint responsibility between operators and maintenance workers to

extend and optimize overall equipment performance.

First applied in discrete manufacturing, OEE is now used throughout

process, batch, and discrete production plants.


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OEE Seminar Report

CHAPTER 2

DEFINITION

The overall performance of a single piece of equipment or even an entire

factory will always be governed by the cumulative impact of the three OEE

factors:

Availability, Performance Rate and Quality Rate.

OEE is a percentage derived by multiplication of the three ratios for the

factors mentioned above. The OEE percentage is used for analysis and

benchmarking.

What is OEE?

OEE = Availability X Performance Rate X Quality Rate

OEE is calculated by multiplying three factors: availability, productivity,

and quality.

% OEE = ( % Availability ) * ( % Productivity ) * ( % Quality )

The values used can reflect an entire processing plant, a process line, or an

individual piece of equipment.

For individual equipment, the performance of the equipment is compared

to earlier values for the same equipment or to similar pieces of equipment.

Changes in OEE or its elements are tracked and trended over time. OEE for a

process line treats the entire line as a single unit, regardless of how much

equipment it includes. For multiple-recipe or batch operations, OEE is calculated

for each product produced. Like a process line, a process plant performs as a

whole, and OEE is therefore calculated for the entire plant as a unit.


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OEE Seminar Report

CHAPTER 3

AVAILABILITY

Percent of scheduled production (to measure reliability) or calendar hour’s

24/7/365 (to measure equipment utilization), that equipment is available for

production

Equipment availability isn't just assumed to be the length of the shift in

which it is operated. Instead, it's based on actual operating time, as a percentage

of the possible production time.

Actual production time % Availability = __________________________ Possible production time

Example:

A process line is operated 24 hours a day, 5 days a week (120 hours).

Planned downtime for preventive maintenance is 1 hour each week. Unplanned

downtime due to equipment failure and equipment adjustment is 7 hours.

% Availability =

(120-1-7)

(120 - 1)

= 112

119= 94%

Even the best operations have some downtime. What makes them the best

is keeping availability as high as possible. Here are some typical availability

values to benchmark your own process against.


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OEE Seminar Report

Process TypeQuartile

Worst 3rd 2nd Top

Continuous <78% 78-84% 85-91% >91%

Batch <72% 72-80% 81-90% >90%

Chemical, Refining, Power <85% 85-90% 91-95% >95%

Paper <83% 83-86% 87-94% >94%

Source:

Flour Global Services — Benchmark study — NA, AP, EU — 1996

For large complex assets or fleets of capital equipment, availability

typically runs between 85%-95%.

The 5%-10% of non-availability is split between "planned downtime"

(scheduled maintenance) and "unplanned downtime" (breakdowns).

How can I measure and improve availability?

Availability is simply a way to quantify how much of the time your

equipment or process is up and running as it should. The higher the availability,

the more you can produce — and the greater your Return on Assets.

Your goal, therefore, is to minimize downtime — especially unplanned

downtime — by improving process and equipment reliability. This course

provides an overview of availability as a factor in OEE.


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OEE Seminar Report

CHAPTER 4

PERFORMANCE RATE

Percent of parts produced per time frame, of maximum rate OEM rated

production speed at. If OEM specification is not available, use best-known

production rate.

Productivity can be calculated by looking at the actual output produced by

the equipment as a percentage of the theoretical output, given its optimum speed

and actual running time.

Example:

The sustained capacity of a plant is 600,000 tons per year. Last year it

produced 560,000 tons.

% Productivity = Actual productionOptimum capacity

= 560,000 tons600,000 tons

= 93%

How can I improve OEE by increasing productivity?

While the availability portion of Overall Equipment Effectiveness

describes the percentage of available operating time that equipment is actually

running, productivity measures how much is produced during that run time.


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OEE Seminar Report

Many process plants are capable of higher productivity than they currently

achieve. The difference between current and potential productivity is an

opportunity to increase output — and profits.

This course covers some of the causes of low productivity in process

plants, an approach for improving productivity, and how to calculate the results

as part of Overall Equipment Effectiveness.


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OEE Seminar Report

CHAPTER 5

QUALITY

Percent of good sellable parts out of total parts produced per time frame.

Calculating quality rate

The quality rate used in OEE calculations is defined as:

% Quality = Product produced -- (scrap & rework)Product produced

For example, a plant produced 550,000 tons of product, but only 485,200

tons met specifications on the first pass.

% Quality = 550,000 - (550,000-485,200)550,000

550,000 - 64,800550,000

= 485,200550,000

= 88%

How can I improve the quality factor in Overall Equipment Effectiveness?

The third factor that affects profitability is product quality — the

percentage of "on-spec" output produced during the first pass through the

production sequence.


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OEE Seminar Report

Improved regulatory control

A regulatory control system can help you produce a uniform product that

consistently meets customer quality demands at the lowest cost. It does this by

minimizing variance throughout the processing cycle — whether that variance is

caused by changing feedstock quality, ambient conditions, equipment

performance, or a host of other factors.

Without an effective regulatory control system, each successive unit

operation can introduce variation that can accumulate throughout the process.

The cumulative variation is reflected in final product quality and the overall cost

of production.

Industry studies indicate that 20 - 40% of process controllers are operated

in manual mode, missing the opportunity to reduce variability through automated

control.

Studies have also shown, however, that more than 30% of the loops that

are automated loops actually increase variability over manual control because of

poor tuning. Many of these loops have equipment problems, including oversized

and undersized valves; excessive hysteresis, resolution, or stick-slip in the valves;

and measurement problems.

The enhanced functionality and performance of intelligent field devices

help minimize these problems, allowing operators to turn on "auto" control. Easy

access to device data enhances loop inspection capabilities to eliminate factors

affecting variability in a control loop and ensure the reliability of the field

measurements. Critical control loops can now be effectively tuned to achieve the

next level of additional revenue generating opportunities.


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OEE Seminar Report

Advanced control systems control the process as each variable relates to

overall productivity or effectiveness. These systems are not single-loop controls,

but a multi-variable envelope representing the constraints of pressure,

temperature, and other factors. Within the envelope, the process is continuously

maximizing effectiveness.

Advanced control systems run continuously; responding to changes,

reducing the impact of upsets, and exploiting opportunities to create more profit.

They are especially valuable where production targets or the quality and

availability of raw materials can all change relatively quickly, so that the

operating constraints and the scope for improvement vary from day to day.


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OEE Seminar Report

CHAPTER 6

HOW TO USE OEE?

Implementing the Overall Equipment Effectiveness formula in your

facility can take on many different forms. It can be used as an analysis and

benchmarking tool for either reliability, equipment utilization, or both. Don't let

indecision on how to best use OEE become a barrier that prevents you from

using it at all. Start out small if necessary, picking your bottleneck to collect the

OEE metrics on.

Once you see first hand what a valuable tool it is, you can gradually take

OEE measurements on other equipment in your facility. If you work in

manufacturing, there is no substitute for going out to the shop floor and taking

some rough measurements of OEE. You will be surprised by what you find!

While monitoring OEE per equipment brings focus on the equipment

itself, it may not provide true cause of major costs, unless the cause is obvious.

For example OEE can appear improved by actions such as purchasing oversize

equipment, providing redundant supporting systems, and increasing the

frequency of overhauls.

To improve your OEE percentage, you will need to use other tools and

methodologies available to you, like TDC, RCA, FTA etc. TDC is a relatively

new methodology that focuses on True Downtime Cost for justification and

making better management decisions.


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OEE Seminar Report

CHAPTER 7

WHY USE OEE?

Overall Equipment Effectiveness (OEE) can be used to save companies

from making inappropriate purchases, and help them focus on improving the

performance of machinery and plant equipment they already own. OEE is used to

find the greatest areas of improvement so you start with the area that will provide

the greatest return on asset.

The OEE formula will show how improvements in changeovers, quality,

machine reliability improvements, working through breaks and more, will affect

your bottom line.

As you strive towards World Class productivity in your facility, this

simple formula will make an excellent benchmarking tool. The derived OEE

percentage is easy to understand and displaying this single number where all

facility personnel can view it, makes for a great motivational technique. By

giving your employees an easy way to see how they are doing in overall

equipment utilization, production speed, and quality, they will strive for a higher

number!

It is highly recommend using an automated equipment monitoring system

with an LCD display for your OEE in each respective area of your facility so all

can monitor. To the employee in each area, it will become as common to glance

at, as the speedometer on a car.


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OEE Seminar Report

CHAPTER 8

ADVANTAGES

The OEE calculation provides focus and simplicity to aid in decision

making. It can help you

Identify areas for improvement

Assess incremental revenue opportunities

Benchmark your operation against similar or competitor processes

For example, by tracking the factors that determine OEE, you can

determine whether your equipment experienced more downtime (planned or

unplanned) than expected, or was running at a slower pace or with minor stops,

or produced more defects.

Root cause analysis begins by focusing on the type and extent of loss, not

the OEE percentage rating itself. Both Operations and Maintenance should be

involved in making improvements — whether reducing unplanned downtime,

increasing process productivity, or improving product quality.

Published benchmark values for the factors of OEE are also excellent

indicators of a process's competitiveness in the market. For example, when

measuring Overall Equipment Effectiveness for the first time, process plants may

find they are only achieving around 40%-70% OEE (batch) or 50%-80%

(continuous process). International best practice figures are recognized to be

+90% (batch) and +95% (continuous process).


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OEE Seminar Report

World-class

Overall Equipment Effectiveness

Availability >90%

Productivity >95%

Quality >99%

OEE >85%

Source: Nakajima

Benefits include significantly reducing downtime caused by equipment

failure, as well as avoiding the higher repair costs of unexpected catastrophic

failures.

Predictive maintenance also reduces the need to schedule downtime for

preventive servicing, which guarantees increased availability.


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OEE Seminar Report

CHAPTER 9

CONCLUSION

The new economy required management technology not only for active

control of human resources but also an equally or even greater control on

equipment usage. This OEE has full exploited the new manufacturing technology

and has raised the level of competition and increase the range of competitive

standards.


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OEE Seminar Report

REFERENCE

1. www.oee.com

2. www.google.com/seminar on oee

3. www.seminarsonly.com

4. www.emerson.com

5. www.maintanceworld.com/Articles/feedforward/overall

6. Overall Equipment Effectiveness, Robert C. Hansen


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http://www.maintanceworld.com/Articles/feedforward/overall

http://www.emerson.com/

http://www.google.com/seminar%20on%20oee

http://www.oee.com/

OEE Seminar Report

ABSTRACT

In today's economy, you're expected to continuously improve your Return

on Total Capital. And as capital to build new, more efficient plants becomes

more difficult to obtain, you often have to meet growing production demands

with current equipment and facilities — while continuing to cut costs. There are

several ways you can optimize your processes to improve profitability. But it can

be difficult to understand the overall effectiveness of a complex operation so you

can decide where to make improvements. That's especially true when the process

involves multiple pieces of equipment that affect each other's effectiveness. To

meet this challenge we can use OEE or Overall Equipment Effectiveness. It helps

in controlling not only human resources but also equipment usage.


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OEE Seminar Report

CONTENTS

INTRODUCTION

DEFINITION

AVAILABILITY

PERFORMANCE RATE

QUALITY

HOW TO USE OEE?

WHY USE OEE?

ADVANTAGES

CONCLUSION

REFERENCE


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