iSixSigma

OEE

Viewing 20 posts - 1 through 20 (of 20 total)
  • Author
    Posts
  • #35908

    billybob
    Participant

    Hello  folks,
    Has anyone used OEE as a process measurement?  Is it a good measurement or not?
    Have a good weekend,
    Later,
    Billybob
    Have a good weekend

    0
    #101984

    jediblackbelt
    Participant

    Billybob-
    The OEE measurement is a decent measurement of how your process is sitting and if you have any opportunities for improvement in the process.  The only problem I have with it is that OEE by itself doesn’t tell you anything on “where” to improve only that you have improvements to be made – kind of like RPN. 
    I use OEE, but don’t report it unless asked.  I would rather keep looking at the three deliverables that decide OEE – Uptime, FTQ, and Efficiency.  This gives you the areas to look at. 
    OEE is good, but you always end up asking the where can I improve question anyway.  So measure the three deliverables and know that you can calculate OEE at any moment. 
    Plus OEE can be fooled by your efficiency.  If you have a loose engineering standard you can have an inflated efficiency and skew the OEE to a more positive.  In this case if you only looked at OEE and it shows you are at >85% you would say you were world class.  The problem is you could be sitting at 80% for both uptime and FTQ, but have a very loose standard and have an efficiency of 133%.  So it could lead you to not focus on the problems. 
    Good luck with the replies…

    0
    #101985

    Mike Carnell
    Participant

    Billybob,
    It is a good measurement with a couple conditions. You need to look at the system that feeds data – common sense says it needs to be accurate and precise. The other side is that you want to differentiate between between efficiency and utilization. You want the measurement to be when you should be using it or is scheduled to be used – efficiency. Utilization can be using it all the time (if management doesn’t understand TOC this will get you into trouble) – that will get you into WIP issues on non-bottleneck operations.
    It is like any other measurement system. Be careful what is in the calculation or you drive the wrong behavior (if you don’t like getting up early in the morning you don’t feed the possums early – feed them lunch not breakfast).
    I have an OEE spreadsheet I use. You are welcome to it just email me at [email protected].
    Regards,
    Mike

    0
    #101988

    Zack Guthrie
    Member

    BB –
    Can’t say I agree with JBB – it’s not a ‘decent’ measure, it’s a critical metric.  Further, the main reason OEE is calculated IS to determine where to improve.
    The main question isn’t the value of the metric or improvement area identification; The primary concern of OEE, is can you get reliable data for your calculation? 
    If data collection exists on your equipment then you are well on your way to a very useful metric.  (You may have in-house resources to modify how the data is collected, you can refine this to fit your OEE calculation requirements.)  If, however, you have no data collection and have to rely on a stop-watch or mechanic’s reports of how long their setups have taken, etc. there is a lot of risk.  If no collection exists, you are better off staging a very good short-term system to get OEE snapshots than attempting to take OEE’s every day, for example, due to the number of inputs.  Only get the minimum number of OEE calc. points as necessary.  If management requires more, write a CAR and get data collection installed.
    Below are calculations – just wanted to make sure the calculation you are using is comprehensive.
    Zack Guthrie
    AVAILABILITY % = PLANNED AVAILABILITY % X UPTIME %PERFORMANCE EFFICIENCY  %RATE OF QUALITY  %AVAILABILITY  X  PERFORMANCE EFFICIENCY  X  RATE OF QUALITY
    FACTORS:
    # OF SHIFTS=HOURS PER SHIFT=PLANNED DOWNTIMELUNCH (INCLUDE ALL AVAILABLE SHIFTS) SHIFT STARTUP MEETINGSTRAINING (CONDUCTED)NOT SCHEDULED TO RUNPLANNED MAINTENANCEOTHER UNAVAILABLE TIME (MEETINGS ETC.)SETUP TIME (Time exclusively used to prepare equipment for another paint)BREAKDOWNS (repair required)UNPLANNED DOWNTIME (waiting for work, or to restart)MINOR STOPS (cleaning accumulated material between setups, etc.)TIME TO PRODUCE DEFECTIVE PARTS  (SCRAPPED OR REWORKED IN AREA, MAY HAVE BEEN RETURNED BY LAB)

    0
    #102009

    jediblackbelt
    Participant

    Zack –
    I don’t want to argue that OEE is/is not a critical factor.  I use OEE all the time the problem is it tells me I need to improve not where.  If I tell you that your OEE is 75% where do you focus improvement efforts?  It tells me I have 25% of my equipment effectiveness is available for improvement, but it doesn’t tell me where to focus improvement. 
    All I am saying is that the three individual measurements used in a scorecard or dashboard tracking system where I can monitor them individually for control and improvements is more value added.
    It is the same as RPN.  A RPN of 100 shows I need improvement, but are all RPN 100’s created equally?  Should I focus my engineering team to poka yoke a process because I get a RPN of 100?  What if process A is O=10, S=10, D=1 and process B is O=1, S=10, D=10.  If I kick a team of for process A versus process B I am making a mistake.  Process A is detected nearly 100% of the time and process B is never detected so I figure I should send my poka yoke team after process B. 
    The same is for OEE, you have to look at the underlying layers of the measurement to get true meaning on the metric.  The metric does not stand alone for anything other than a reporting tool.  The metric is good for upper management, but not those that are in the trenches fighting the battle.  Give me the three individual metrics any day versus the pooled metric.

    0
    #102011

    Zack Guthrie
    Member

    JBB –
    When we graph OEE, it’s done as a pie chart with the following categories: OEE, minor stoppages, breakdowns, unplanned downtime, setup, and quality – not just one grouped percentage.  Thus, this is (6) different categories that we have mapped out (by %) which give us a good indication on where to the biggest opportunities lie.  Further, depending upon the application it may be appropriate to break these out further – obviously only so far as you can get good data.
    Minor stoppages and setup may point to setup improvements (layout, tooling boards, SMED exercises, etc.); breakdowns may point to TPM,  or capital improvements, etc.; unplanned downtime may indicate scheduling issues; and quality alerts us to lost opportunities due to defects, for example.
    Concluding, I do think it’s useful for someone in the trenches … especially when management enablers are required.  This OEE category breakout can at times be used to communicate ‘capability’ (using the word loosely).  If OEE is at 75%, it may be shown that to approach higher levels of effiency that capital expenditures are required (15% breakdowns, 5% other) and to focus elsewhere until they become available.
    We are on the same page, I just didn’t want to tell BB that OEE was just another metric.
    Zack Guthrie, P.E.
    I agree with your RPN example.

    0
    #102017

    MJC
    Participant

    I agree with Zack, for productivity improvements its a valuable tool.
    I use OEE analysis as a project hopper showing the breakdown of losses into categories which are presented into a stacked column chart, with pareto analysis of detail for each loss category.
    But OEE analysis can be limited if you just show effectiveness x performance x quality.
     
    MJC

    0
    #102031

    jediblackbelt
    Participant

    Zack –
    Sounds like you are really using OEE to its fullest.  I am very interested in the chart you use to present.  I have always struggled with a method to use it and still get information to improve my operations from it.  Any way possible I could get an example of your method of presenting it? 
    You are right, the way I came off with making it sound like it is just another metric wasn’t real good for somebody that may/may not be familiar with it.  I have always liked/used OEE, especially for capacity studies, but have always struggled using it as a single measure for improvements.
    Keep fighting the fight and maybe someday we will meet in the trenches.

    0
    #102036

    Zack Guthrie
    Member

    JBB,
    Post an email address that you use and I’ll send a simplified version to you.
    Zack
    I’ll be out of pocket the rest of the day so if you post I’ll pick it up tonight/tomorrow.  FYI

    0
    #102037

    jediblackbelt
    Participant

    Zack –
    Here is my work address.
    Thanks,
    [email protected]

    0
    #102100

    Nats
    Participant

    can you send it to me also? thanks.

    0
    #102101

    Zack Guthrie
    Member

    NATS,
    Post your email address so I can send it – it will be tomorrow before I get to it – FYI.
    Zack

    0
    #102144

    Nats
    Participant

    Hi Zach,
    My email add is [email protected], please send me the OEE info’s and other related articles so i can check on it.
    Thanks a lot!!
    Nats
     
     
     

    0
    #102187

    Zack Guthrie
    Member

    JBB,
    Your email address bounced back – I’ve got [email protected] for your address.
    What is the correct address?
    Zack

    0
    #102220

    jediblackbelt
    Participant

    Zack –
    Company must have the firewall tightened up a little.  Can you send it here?
    [email protected]
    Thanks,

    0
    #102245

    Peter Örtlund
    Participant

    If it isn’t too much trouble, I would like a copy to of the example spreadsheet.
     
    [email protected]
     
    Tanks in advance
     
    Peter Örtlund BB

    0
    #119251

    Schultz
    Participant

    Hello
    A bit late I know but can I have a copy of your OEE spreadsheet.
    [email protected]
    Thanks
    Charlie

    0
    #128821

    Edo
    Participant

    Please, take a look at http://www.oeesoftware.info 

    0
    #180571

    Mares
    Participant

    BB,
    Please send me the OEE spreadsheet that you use.
    (my address:  [email protected]).
    Thank you,
    Regards,
    Adrian

    0
    #180575

    Ron
    Member

    OEE is made up of three parts – Efficiency of the equipment, Downtime of the Equipment and Quality of the product.
    All are good metrics… The difficulty with most companies the quality of the data is questionable and therefore the OEE calculation is questionable.
    As an overall rule combining the three into a single number quickly focuses attention to those pieces of equipment that deserve a closer look.
    Don’t fall into the trap some lean practitioners do in which they calculate OEE for a Cell which contains mutliple piecess of equipment as this is pure folly.

    0
Viewing 20 posts - 1 through 20 (of 20 total)

The forum ‘General’ is closed to new topics and replies.