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30-436: Measuring OEE is a manufacturing best practice. By measuring OEE and the underlying losses, important insights can be gained on how to systematically improve the manufacturing process. OEE is an effective metric for identifying losses, bench-marking progress, and improving the productivity of manufacturing equipment (i.e., eliminating waste). The best way for reliable OEE monitoring is to automatically collect all data directly from

60-417: A challenging target; 85% is not uncommon. Alternatively, and often easier, OEE is calculated by dividing the minimum time needed to produce the parts under optimal conditions by the actual time needed to produce the parts. For example: Whereas OEE measures efficiency based on scheduled hours, TEEP measures efficiency against calendar hours, i.e.: 24 hours per day, 365 days per year. TEEP, therefore, reports

90-607: A facility at certain times. Performance and quality may not be independent of each other or of availability and loading. Experience may develop over time. Since the performance of shop floor managers is at least sometimes compared to the OEE, these numbers are often not reliable, and there are numerous ways to fudge these numbers. OEE has properties of a geometric mean . As such it punishes variability among its subcomponents. For example, 20% * 80% = 16%, whereas 50% * 50% = 25%. When there are asymmetric costs associated with one or more of

120-626: A manufacturing unit are calculated as the product of three separate components: To calculate the Total Effective Equipment Performance(TEEP), the OEE is multiplied by a fourth component: The calculations of OEE are not particularly complicated, but care must be taken as to standards that are used as the basis. Additionally, these calculations are valid at the work center or part number level but become more complicated if rolling up to aggregate levels. 9 Major Downtime Losses Affect Availability Each of

150-448: A top-level executive. Also a TPM program team must rise, this program team has oversight and coordination of implementation activities. As well, it's lacking some crucial activities, like starting with partial implementation. Choose the first target area as a pilot area, this area will demonstrate the TPM concepts. Lessons learned from early target areas/the pilot area can be applied further in

180-560: Is a common practice. The eight pillars of TPM are mostly focused on proactive and preventive techniques for improving equipment reliability: With the help of these pillars, we can increase productivity. Manufacturing support. Following are the steps involved by the implementation of TPM in an organization: According to Nicholas, the steering committee should consist of production managers, maintenance managers, and engineering managers. The committee should formulate TPM policies and strategies and give advice. This committee should be led by

210-420: Is based on five cornerstones: The product, the process that allows the product to be produced, the organization that provides the proper environment needed for the process to work, the leadership that guides the organization, and commitment to excellence throughout the organization. In other words, TQM focuses on the quality of the product, while TPM focuses on the losses that impede the equipment used to produce

240-428: Is more appropriate since execution of these 8 activities is the process of TPM implementation. The goal of TPM is the improvement of equipment effectiveness through engaging those that impact on it in small group improvement activities. Total quality management (TQM) and total productive maintenance (TPM) are considered as the key operational activities of the quality management system. In order for TPM to be effective,

270-426: Is not however an absolute measure and is best used to identify scope for process performance improvement, and how to get the improvement. OEE measurement is also commonly used as a key performance indicator (KPI) in conjunction with lean manufacturing efforts to provide an indicator of success. OEE can be illustrated by a brief discussion of the six metrics that comprise the system (the "Six Big Losses"). The OEE of

300-531: Is scheduled to run 5 Days per Week, 24 Hours per Day. For a given week, the Total Calendar Time is 7 Days at 24 Hours. Loading = (5 days x 24 hours) / (7 days x 24 hours) = 71.4% The Availability portion of the OEE Metric represents the percentage of scheduled time that the operation is available to operate. The Availability Metric is a pure measurement of Uptime that is designed to exclude

330-705: Is scheduled to run for an 8-hour (480-minute) shift with a 30-minute scheduled break. Operating Time = 450 Min Scheduled – 60 Min Unscheduled Downtime = 390 Minutes The Standard Rate for the part being produced is 40 Units/Hour or 1.5 Minutes/Unit The Work Center produces 242 Total Units during the shift. Note: The basis is Total Units, not Good Units. The Performance metric does not penalize for Quality. Time to Produce Parts = 242 Units * 1.5 Minutes/Unit = 363 Minutes Performance (Productivity) = 363 Minutes / 390 Minutes = 93.1% The Quality portion of

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360-453: The Focused improvement tactic to systematically reduce breakdown risk sets out how to improve asset condition and standardise working methods to reduce human error and accelerated wear. Combining OEE with Focused improvement converts OEE from a lagging to a leading indicator. The first Focused improvement stage of OEE improvement is to achieve a stable OEE. One which varies at around 5% from

390-528: The 'bottom line' utilization of assets. TEEP = Loading * OEE The Loading portion of the TEEP Metric represents the percentage of time that an operation is scheduled to operate compared to the total Calendar Time that is available. The Loading Metric is a pure measurement of Schedule efficiency and is designed to exclude the effects how well that operation may perform. Calculation: Loading = Scheduled Time / Calendar Time Example: A given Work Center

420-542: The JIPM Seiichi Nakajima is therefore regarded as the father of TPM. The classic TPM process he developed consisting of 5 principles was later enhanced by the JIPM to incorporate many of the lessons of lean manufacturing and is referred to as Company-Wide TPM which consists of 8 principles/activities. The name "Pillar" is symbolically used as a structural support to the structure of TPM. The term "activities"

450-879: The OEE Metric represents the Good Units produced as a percentage of the Total Units Started. The Quality Metric is a pure measurement of Process Yield that is designed to exclude the effects of Availability and Performance. The losses due to defects and rework are called quality losses and quality stops . Reworked units which have been corrected are only measured as unscheduled downtime while units being scrapped can affect both operation time and unit count. Calculation: Quality = (Units produced - defective units) / (Units produced) Example: 242 Units are produced. 21 are defective. (242 units produced - 21 defective units) = 221 units 221 good units / 242 total units produced = 91.32% To be able to better determine

480-775: The components, then the model may become less appropriate. Consider a system where the cost of error is exceptionally high. In such a condition, higher quality may be far more important in a proper evaluation of efficiency than performance or availability. OEE also to some extent assumes a closed system and a potentially static one. If one can bring in additional resources (or lease out unused resources to other projects or business units) then it may be more appropriate for example to use an expected net present value analysis. Variability in flow can also introduce important costs and risks that may merit further modeling. Sensitivity analysis and measures of change may be helpful. Seiichi Nakajima Seiichi Nakajima (1919–April 11, 2015)

510-479: The concepts of lean manufacturing. TPM is designed to disseminate the responsibility for maintenance and machine performance, improving employee engagement and teamwork within management, engineering, maintenance, and operations. There are eight types of activities in TPM implementation process: Total productive maintenance (TPM) was developed by Seiichi Nakajima in Japan between 1950 and 1970. This experience led to

540-440: The correct environment between operators and equipment to create ownership. OEE has three factors which are multiplied to give one measure called OEE: Each factor has two associated losses making 6 in total, these 6 losses are as follows: The objective finally is to identify then prioritize and eliminate the causes of the losses. This is done by self-managing teams that solve problems. Employing consultants to create this culture

570-727: The effects of Quality and Performance. The losses due to wasted availability are called availability losses . Example: A given Work Center is scheduled to run for an 8-hour (480-minute) shift with a 30-minute scheduled break and during the break the lines stop, and unscheduled downtime is 60 minutes. The scheduled time = 480 minutes - 30 minutes = 450 minutes. Operating Time = 480 Minutes – 30 Minutes Schedule Loss – 60 Minutes Unscheduled Downtime = 390 Minutes Calculation: Availability = operating time / scheduled time Availability = 390 minutes / 450 minutes = 86.6% Calculation: Performance ( Productivity ) = (Parts Produced * Ideal Cycle Time) / Operating time Example: A given Work Center

600-419: The full participation of entire organisation from top to frontline operators is vital. This should result in accomplishing the goal of TPM: "Enhance the volume of the production, employee morals, and job satisfaction." The main objective of TPM is to increase the overall equipment effectiveness (OEE) of plant equipment. TPM addresses the causes for accelerated deterioration and production losses while creating

630-413: The implementation process. Total quality management and total productive maintenance are often used interchangeably. However, TQM and TPM share a lot of similarities but are considered as two different approaches in the official literature. TQM attempts to increase the quality of goods, services, and concomitant customer satisfaction by raising awareness of quality concerns across the organization. TQM

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660-423: The loss and improve the overall OEE. Continuous improvement in OEE is the goal of TPM ( Total Productive Maintenance ). Specifically, the goal of TPM as set out by Seiichi Nakajima is "The continuous improvement of OEE by engaging all those that impact on it in small group activities". To achieve this, the TPM toolbox sets out a Focused improvement tactic to reduce each of the six types of OEE loss. For example,

690-611: The machines. Total effective equipment performance (TEEP) is a closely related measure which quantifies OEE against calendar hours rather than only against scheduled operating hours. A TEEP of 100% means that the operations have run with an OEE of 100% 24 hours a day and 365 days a year (100% loading ). The term OEE was coined by Seiichi Nakajima . It is based on the Harrington Emerson way of thinking regarding labor efficiency. The generic form of OEE allows comparison between manufacturing units in differing industries. It

720-596: The manufacturing industry through TPM ." Total productive maintenance Total productive maintenance ( TPM ) started as a method of physical asset management , focused on maintaining and improving manufacturing machinery in order to reduce the operating cost to an organization. After the PM award was created and awarded to Nippon Denso in 1971, the JIPM ( Japanese Institute of Plant Maintenance ), expanded it to include 8 activities of TPM that required participation from all areas of manufacturing and non-manufacturing in

750-485: The mean for a representative production sample. Once an asset efficiency is stable and not impacted by variability in equipment wear rates and working methods. The second stage of OEE improvement (optimisation) can be carried out to remove chronic losses. Combining OEE and TPM Focused improvement tactics creates a leading indicator that can be used to guide performance management priorities. As the TPM process delivers these gains through small cross functional improvement teams,

780-430: The process of OEE improvement raises front line team engagement/problem ownership, collaboration and skill levels. It is this combination of OEE as a KPI, TPM Focused improvement tactics and front line team engagement that locks in the gains and delivers the TPM goal of year on year improvement in OEE. OEE is useful as a heuristic , but can break down in several circumstances. For example, it may be far more costly to run

810-480: The recognition that a leadership mindset engaging front line teams in small group improvement activity is an essential element of effective operation. The outcome of his work was the application of the TPM process in 1971. One of the first companies to gain from this was Nippondenso, a company that created parts for Toyota. They became the first winner of the PM prize. An internationally accepted TPM benchmark developed by

840-402: The sources of the greatest loss and to target the areas that should be improved to increase performances, these categories ( Availability, Performance and Quality ) have been subdivided further into what is known as the 'Six Big Losses' to OEE. These are categorized as follows: The reason for identifying the losses in these categories is so that specific countermeasures can be applied to reduce

870-461: The three components of the OEE points to an aspect of the process that can be targeted for improvement. OEE may be applied to any individual Work Center, or rolled up to Department or Plant levels. This tool also allows for drilling down for very specific analysis, such as a particular Part Number, Shift, or any of several other parameters. It is unlikely that any manufacturing process can run at 100% OEE. Many manufacturers benchmark their industry to set

900-786: Was a Japanese citizen and pioneering founder of the Total Productive Maintenance system. He established the PM Awards (currently the TPM Awards). Nakajima was honored by the Emperor of Japan with the Ranju Ho-sho, or Medal with Blue Ribbon . The award recognizes individuals with significant lifetime achievements, and was given to Nakajima by the Emperor "to show gratitude for the dedication to improving

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