Manufacts
Spring 2001



Improve Productivity by Thinking Small

A catastrophic equipment failure can do serious damage to a manufacturer’s productivity. But often it’s the smaller interruptions that combine to do the most harm. Time lost from seemingly minor interruptions — such as set ups that aren’t ready or equipment running at less than full capacity — can add up to surpass the time lost from one big failure. And while a catastrophe draws the immediate attention of management, smaller problems often go unnoticed.

Following are several strategies for gaining back time lost to smaller interruptions and delays.

Improve Set Up Times
Your goal is to reduce the time it takes to get from the last good part produced, through set up, and onto the first good part produced. Most companies clock this at one to two hours. World class companies do it in 10 minutes. You can improve set up times four ways:

    1. Be prepared for the next set up. Post a schedule so everyone on the line knows what part is coming up next. This eliminates time wasted between setups while employees wait for instructions.

    2. Have maintenance set up tools and parts needed for the changeover so production doesn’t have to wait for materials.

    3. Organize and standardize lines and equipment. Tools and parts should be kept in the same place at each line, and the same parts should be kept in the same place on all equipment. Have the tooling set up beforehand so line operators can put it in place and go.

    4. Eliminate bolts and use quick disconnect hoses and fasteners.

Keep a Clean House
Maintaining a neat, organized workplace can have a big impact on productivity.

    1. Eliminate clutter. This gives workers the space to do their jobs. It also frees up space so you can store necessary items for the next change.

    2. Store everything where it belongs. This eliminates the need for workers to scavenge for tools. This recommendation is for regular operations as well as for set up and changeover processes.

    3. Keep frequently used items closest to machines or processes. This reduces travel time.

    4. Keep equipment clean. Clean equipment operates more efficiently. Also, it’s easier for maintenance to spot if a machine needs repair if defective products start coming off the line.

    5. Standardize processes. This eliminates lost time when workers move from process to process. Also, workers can find what they need even if they aren’t at their regular work station.

Measure Overall Equipment Effectiveness (OEE)
The measurement equation includes availability, performance efficiency, and quality rate. (See below for definitions and sample equations.) World class companies have an 85 percent OEE (90 percent availability, 95 percent performance efficiency, and 99 percent quality). Calculating your OEE helps you pinpoint and chart delays or production losses.

Communicate With Employees
Traditional methods of communication — such as memos and procedure manuals — may not get your message across. Try to be more visual. Use bar graphs or pie charts to show improvements made compared to goals sought. And schedule frequent meetings between production and maintenance so operations are compatible.

The benefits of measuring OEE disappear when the discipline to monitor them wanes. Therefore, taking these measures should become ingrained in your company’s culture.



Overall Equipment Effectiveness (OEE)
OEE = availability x performance efficiency x quality rate.

Availability is how long equipment ran compared to its planned run time. It’s calculated by dividing operating time by total available time.

Performance efficiency is the number of units produced compared to the number that could have been produced. This figure is calculated by taking the actual units produced during a specified time and dividing that number by the maximum number of units the machine can produce.

Quality rate is the percentage of product that’s first run. Subtract the number of rejected or reworked parts from the total number of parts run.

Example

Equipment run: 15 hours
Planned run time: 16.5 hours
Actual units produced : 247
Total number units rejected or reworked: 7

Ideal units: 295
Availability: 15/16.5 = 90.9%
Performance efficiency: 247/295 = 83.73%
Quality rate: 240/247 = 97.17%

OEE 90.9 x 83.73 x 97.17 = .73956 = 74%



Perisho Tombor Ramirez Filler & Brown
901 Campisi Way, Suite 250
Campbell, CA 95008
408-558-0500
info@ptlr.com

The articles in this newsletter are general in nature and are not a substitute for accounting, legal, or other professional services. We assume no liability for the reader's reliance on this information. Before implementing any of the ideas contained in this publication, consult a professional advisor to determine whether they apply to your unique circumstances.
© 2001