6 Big Losses & OEE. Do you want to get out of that firefighting mode? Trying to react to all our problems? So what can we do differently?

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1 6 Big Losses & OEE Do you want to get out of that firefighting mode? Trying to react to all our problems? So what can we do differently? Well first of all we need to look at things a little differently. Quality should be and safety should be the number one things that we look at. We should also be an active part of our solution. And we must fix things as soon as possible and invest in some prevention, try to be as proactive as possible. And we have to set up a system to do that. Now let s talk back about your car, your car just passed 30,000 miles. So a service check is recommended, even if it s running fine. Why? It s to prevent problems, to check it out. Does everybody do their service checks on their cars? Probably if it s covered by warranty you do, but as soon as warranty s out, what happens? You stop, typically. So we want to make sure we check the operation out. Now how many people have to get to work in the morning on time? What happens if you didn t do the check on your vehicle and it broke down? Is that an inconvenient time for it to break down? What if you re going to the airport to catch an airplane? Is that an inconvenient time? Going to soccer game on Saturday, is that an inconvenient time? Usually what happens if we don t maintain our piece of equipment the breakdown will happen at an inconvenient time, right? So let s prevent that. So we want to set up systems where we don t have that. So we want to check back. There s also a pay me now, or pay me later. Typically, it s pay me more later. If you have a major pump repair, if you have it unplanned it probably takes you 200 hours as an example of downtime, and it will cost about $60,000 to replace it, usually 10 times the normal cost. Why? Because you have overtime, you have to expedite it, you ve got some shipping, you can lose production, you ve got an outside help that comes in. These are all things that you have to do to firefight to get all things done. Maybe it would have only taken you 72 hours of planned downtime, and you would have had things planned up front that it would have only cost you less, maybe $6, Those are just figures as an example, but you could do the simple math that any time I can plan something it s going to be cheaper than if it was a reaction 4. 6 Big Losses & OEE Page 1

2 to something happening at an inconvenient time. So the point is how can we prevent that inconvenient times happening? It can also saves us in energy, you could go into some super equipment and this is something when you get further along in the TPM, to start looking at prevention, and investing in things like ultrasonic equipment, vibration equipment, thermographic and oil analysis. Let s take Oil analysis as one. One of the things about Oil Analysis is just like you change the oil in your car, what do they tell us? Change your oil every 3,000 miles or every 3 months, right? It s in the manual. Why do they tell you to do that? History, ok, neither one is the best way to do it. The best way to do it is look at the oil itself. The oil will tell you if it s needed to be changed or not. So it may be 6,000 miles, not 3,000 miles. So they re using that to insure that you can change the oil without checking it. We may do that in our equipment. How many people say we re going to change that every 6 months? Or we re going to change that every so many hours of production. It s typically how maintenance has it set up. What you may want to look at is, how can I analyze my oil? Perhaps you can send it out to be analyzed or do it in house that way I can check the oil condition and then it can tell me when it needs to be changed. Saving time on the changing of the oil and saving time on making sure it doesn t wear out prematurely. Now let s talk about maintenance Heaven. If you think about maintenance Heaven, what would be Heaven to a maintenance person? Zero breakdowns. That would be good, right? You d be in Heaven if you had zero breakdowns. You didn t have any set ups or adjustments to worry about on any pieces of equipment, that would be Heaven. You had no small stops, little interruptions; little hiccups that you have to go run out and fix this lever. No speed losses. You have a piece of equipment, by speed loss, what I mean is your machines old and we can t run it full out, let s back it down about 80%, maybe 60%, because we don t want to push it too hard. So that s a speed loss, we have to slow the machine down because it can t handle running at what it s meant to be. Startup rejections, yeah we got the machine set up but we have to do a lot of adjustments to get a good piece out. So all those adjustment periods, any product defects because the machine doesn t hold the variability that it should hold, so are tolerances are too tight and the machines not capable of running those tolerances, so we got a lot of rejects Big Losses & OEE Page 2

3 So I would consider those the 6 big major losses. Those are the six major losses that we look at and if didn t have those we would be in maintenance Heaven. Would you agree? So when we look at those six major losses, we can actually measure them. Something called OEE. And what we re going to look at is how those losses affect our production. So if you look at the very first top chart, our total production time is we can run all out. Complete time to run the machine, you can run 24 hours 7 days a week. Our availability loss are things like if we have breakdowns or set up adjustments, well we have to make time for that, so whatever time we lose for breakdowns and these set up adjustments we lose availability. So if you subtract that from our total then we have some remaining operating time. Then we come back and look at minor stoppages or reduced speed, that s a performance loss. We slowed the machine down. So we take that off and we have less operating time. And then you look at any time we have reworks or start up issues, that s a quality issue and then we take that loss off and we are down to less time. So if you take all those losses during the day and you see how much time is our machine actually available running at top speed and running good quality parts Big Losses & OEE Page 3

4 What percent of time is our machine running that way? We want to make that a larger percentage of the day than what it currently exists. So here s a piece of equipment, it s on the log books that it should run for 6.50 hours during those 6.5 hours there was one dye change, it took 30 minutes, one down time incident took 90 minutes to repair, the operator had to wait 60 minutes for additional parts to be delivered. There were 63 parts made but 3 were rejected. So based on what we just talked about we can measure what the availability time on that machine is, what the performance rate is what the quality rate is and then what s the OEE? Let s do the math. We took our low time of 6.5 hours which is 390 minutes, subtract the dye change and the 90 minute stop, so right now dividing that out, it s 69% available. So we took the losses of the set up and the breakdown of 69%. Performance was down to 78% and when you looked at the quality it was 95%. You take those 3 and multiply them by each other the 69 times the 78 times the 95 gives you 51% OEE which stands for Overall Equipment Effectiveness. Now a lot of times we want to measure how effective our equipment is so we institute a measure on our pieces of equipment. Usually when you first start a TPM program, you don t know how effective 4. 6 Big Losses & OEE Page 4

5 your equipment is. You don t have this metric, so it s a good metric to start so everybody understands what the process is of where our losses are coming from and what can we do about it. As you get really good there may come a point where you don t need this metric anymore, but it s a good metric to start out with so everybody understands, what s causing our machines not to run at full out. Typically, in the U.S. it s about a 40% running time. So 40% of the time, you would expect our machines running. If you did the true OEE on your equipment. So what s world class? World class is around 85%. So if you re at an 85% level, that s pretty much world class. Of course we re going to move it toward 100. Now what happens if you have 120% OEE? Fix your standards exactly correct. We had that example happen to us. We had an OEE of 120% so when we went through and looked at each of the elements we found out our standards set for the machine were too low, that they had changed some of the tooling improving the productivity but never changed the standards. So they were kicking butt on getting productivity out. They were still terrible on the other stuff. But they were so productive when it was running at 120%. So what did we do? Changed the standards. Reflect what it should be running. And then the OEE was back down. So you may run across that, but when you did the measures, you saw that problem. Even though people knew about it, they didn t figure it out until they did the OEE and said uh oh, we should change that. We should fix that. No that just happened to be an example where we had changed some tooling to improve the productivity and it was reflected in the OEE. But you would do this metric and see where your losses are and concentrate your focus on the biggest losses. Now the biggest loss of all is if you have a loss of life, or injury. So make sure safety is first when you do a TPM program. Please ensure you follow all lock out tag out procedures. So we talked about the six major losses but that s nothing compared to this loss. We don t want anyone losing their life or being injured Big Losses & OEE Page 5

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