The three pillars of OEE
Build technical, process, and supervisory skills to gain operational knowledge.
Most of us are already aware that overall equipment effectiveness (OEE) measures the technical performance and capacity utilization of a manufacturing asset and hence allows us to judge the effectiveness with which an asset is being used, in order to add value to the business. It allows the analysis of all the sources of capacity losses, whatever their origin may be.
However, actually bringing about improvements can seem complicated. What are the real OEE drivers and levers, and how should they be implemented? This article outlines how, by taking an integrated approach to OEE and keeping things straightforward, you can use OEE to increase productivity and savings.
The Three-Pillar approach
When discussing OEE improvements, most concentrate on the technical aspect, preferring to invest in plants and machines to create additional value and minimize losses. Naturally, that can have a direct impact on OEE, but it is a very cost-driven approach and the necessary budget may not always be available. What most forget is that there are two other key pillars of OEE that can and should be used to achieve shared goals, which include the proper management of structures, processes, and people.
Starting with the technical aspect of OEE, having identified the levers that can improve the process flow/bottleneck to increase output—for example, machine configuration, metering, formulation, or correct batch size—it is important to transfer them into a detailed overall structured activity plan (OSAP).
The OSAP should include a breakdown structure for the work packs and their activities, as well as cost, start and end dates, impact, implementation progress, and responsibilities. Secure routines must be in place to update the plan and conduct continuous tracking of improvements. Start with the quick wins in terms of motivation.
The OSAP must be treated as a living document and used to implement a problem-solving meeting routine where employees at all levels work together proactively to achieve regular, incremental improvements to the manufacturing process.
New, confirmed improvement measurements should be transferred into the overall technical activity plan, while workshops should be set up to consider different functions (such as production manager, engineer, shift leader). These workshops must be highlighted by a preparation, execution, and follow-up phase.
For handling very specific problems, for example concerning Ishikawa, brainstorming, or 5W, an initial training session on the necessary functions must be carried out.
Pillar Two: Processes
One of the major goals of OEE programs is to reduce and/or eliminate what are known as the Six Big Losses: breakdowns, setup and adjustments, small stops, reduced speed, startup rejects, and production rejects. The most common causes of efficiency loss in manufacturing.[SS2] However, honest analysis is often lacking when it comes to OEE, meaning that results don’t always give a true picture of reality, and improvements are either disappointing or simply not implemented. If the full benefits of OEE are to be realized, it is absolutely essential that all processes are analyzed to identify areas for improvement and to put the necessary tools in place to achieve it.
Single Minute Exchange of Die (SMED)
SMED is a system for reducing the time for cleaning and changeovers, both of which must be analyzed to see whether they can be simplified or streamlined. Before optimizing the changeover routine, all possible improvements must have been investigated by the people doing them. Standard times for cleanings and changeovers should then be defined by the shift leaders and be confirmed by the operator.
Employees need to have understood the influence of the cleaning and campaign changes on OEE in order for them to work in practice, so workflows need to be visualized in the form of an operating procedure and a standard provided to all stakeholders.
Maintenance can impact many of the value drivers, such as the losses for breakdowns, and forms a key element of successful operations needed to sustain asset performance. As a result, both the maintenance effectiveness and efficiency need to be challenged as they also influence reliability improvement. Without full maintenance integration the optimum OEE improvements will not be realized. Improving maintenance practices involves operations.
Operators need to know what to look for during their daily routines that will impact reliability. They need to submit these via the work order management (WOM) system to drive preventive maintenance that can be conducted during changeovers or breakdowns. A robust set of maintenance KPIs (7 to 12) will identify those areas within actual maintenance execution that require attention.
Visual Management and KPIs
For changes to be taken on board, people need to understand exactly what is expected of them and what the changes are. Using whiteboards as a communication tool to describe changes will help to prevent confusion and drive empowerment and accountability. The whiteboard should display the current state of all the production zones, equipment, and changeovers and what issues or work is ongoing in those zones.
The performance dialogue between employees should then be supported by KPIs, which help them to assess goal attainment via plan/actual comparisons and the analysis of deviations to focus on doing the right things. By putting a strong focus on management by objectives, the whiteboard approach will improve shift performance and ensure team alignment with site and business strategy.
Optimize the existing meeting structure—including shift meetings and shift hand over—as a steering tool. Meetings must be results driven and should always include capturing action items by accountable person and due date. The agenda for all existing meetings should be split, timed, and action-driven with dated deadlines. Meetings should demonstrate the right discipline, such as preparation and accuracy.
5 S focuses on effective workplace organization and standardized work procedures, by simplifying the work environment and reducing waste. Make sure all tools and supplies necessary for the changeover are in one place, with pinned or marked settings so that coarse adjustments are no longer necessary. If 5 S is not carried out properly, all other work will be restricted.
Pillar Three: Active Supervision
The integration of shop floor employees is essential to installing OEE successfully and to making it sustainable. Workers must understand the philosophy behind OEE so that they can use the tools effectively.
Shift leaders should train and coach their teams systematically on how to reach the best line performance, while they themselves should be part of a program of behavioral change aimed at ensuring a standardized approach to shift management and follow-up. Both managers and their teams should be completely clear as to what is expected of them and when, as well as how their performance will be measured.
The real benefit provided by OEE is the opportunity to create future growth without having to commit to huge capital investment. It is not just focused on technical issues though and requires full integration of systems and behaviors to be successful. Only when all staff—from management to the shop floor—commit to improvement across all levels of the organization—from maintenance, operations, and engineering to quality—can the real potential of OEE be unlocked.
Jerry Wanichko is director of U.S. consulting operations for T.A. Cook Consultants, Inc.
The Bottom Line:
- While the value of OEE as an operational metric is well understood, it can be complicated to actually implement changes that will improve OEE.
- Look beyond just the technical aspects of OEE to include processes and active supervision to create a three-pillar approach to OPEE improvement.
- All employees, from the corner office to the plant floor, must understand how OEE is measured, why it is an important metric, and why their commitment to improving OEE is so important.
Among the articles at PlantEngineering.com that discuss original equipment effectiveness (OEE). KEYWORD: OEE:
- Three tips for achieving OEE success
OEE is built on the premise that total efficiency cannot be maximized by running equipment at its top speed. There is a balance to be struck between speed and the conflicting need to control quality and limit downtime. Basically, your plant or production line is built to produce at a certain theoretical maximum output. This output is reached only if you run the facility 24×7 at maximum speed, with no stops and no waste due to poor quality.
By Ulf Stern, IFS AB
- The OEE metric—The right way to use it
As the industry-by-industry numbers show, there is wide variation in OEE. Much of this stems from the fact that very different equipment is used to manufacture a cell phone versus an aircraft or to make pharmaceuticals. Even within an industry the processes and equipment to make one product may vary significantly from those to make another.
By Dan Miklovic, LNS Research
- Driving OEE: A strategy for business results
Central to efficient operation is achieving a high level of capacity utilization, and plants must strive to make the best use of their existing capacity. Utilization levels, though, vary from plant to plant, and measuring the capacity utilization of a facility’s assets is a key performance indicator for plant managers.
By Stanley T. Grabill, CMRP, Honeywell Process Solutions
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