Lean Applied to OEE Implementation

Solutions  » Overall Equipment Effectiveness (OEE)

Once you implement an automated data collection system with OEE what do you do next? You apply LEAN techniques! Memex can help you with specific programs.

Leaders build LEAN continuous improvement to drive down costs. Lower costs deliver competitiveness. Successful LEAN organizations stay competitive in their sector without relying on outsourcing, layoffs and closures.

Organizations that haven’t incorporated LEAN into their operations lose money on every dollar they earn. With LEAN, they can realize large operational and process savings. Work will flow better and get done sooner. Possible LEAN savings are dramatic: Inventory: 40%, Cycle Time: 50%, To-Customer Delivery Times: 20-80%.

LEAN will help you keep that dollar.

This is “found” money that is saved from reducing waste. What seemed like soft savings can become hard money and drive an increase in revenue and profitability.

The PDCA (plan-do-check-act) Four Step Model

Toyota incorporated into their guiding principles W. Edwards Deming’s PDCA Model so that business processes could be analyzed and measured to identify sources of variations that cause products and/or services to deviate from plan.

Service Pack 1 – Performance Measurement for Manufacturers

(PM) is an Evidence Based Management System based on OEE that allows manufacturers to tangibly measure their organization’s performance across all functional areas. PM presents factual, accurate, relevant, consistent and timely operational information.

Methodology

  • Create Data Acquisition Model and collect data (1-2 days)
  • Process data to generate performance measures
  • Identify opportunities
  • Develop and present report
  • Actual data collection – 4 hours
  • Strategic Decision to not push for additional data

Asset Utilization (example)

Availability Performance Quality OEE
Plant (Ideal) 79.25 82.38 98.80 64.50
Plant (Probable) 60.00 82.38 98.80 49.38
Bench 5 60.00 59.30 98.80 35.15
Lean Target 95.00 90.00 99.50 85.00

Asset Utilization – Areas of Improvement

Availability Performance Quality
  • Level of proactive maintenance
  • Setup and adjustment
  • Asset Reliability
  • Operator training
  • Logistics
  • Design
  • Material availability
  • Material
  • Setup and adjustment
  • Operator activity

Line Level OEE

Service Pack 2 – Lean Management System Standards

The Lean Management System Standards provides guidelines to organizations for performance and continuous improvement.

The role of a lean organization is to:

  1. Optimize the flow of products and/or services through the value stream so that they flow horizontally across technologies, assets, and departments at the pull of the customer
  2. Eliminating waste along the value stream to create processes that need less human effort, less space, less capital, and less time.
  3. Respond to changing customer desires with high variety, high quality, low cost, and with very fast throughput times
  4. Therefore, providing perfect value to the customer through a perfect value stream that has zero waste

Service Pack 3 – Lean Leader Certification

Lean Certification for Senior Leaders – Build Savings and Success

As a strategic leader, you know the value of working smarter, not harder. Building cost savings, process improvements and building your lean organization have been important early steps. Now you must continue to reach for greater savings and the Lean Certification for Senior Leaders will get you there.

The Lean Certification for Senior Leaders will give you the executive advantage in building and sustaining improvement in your organization.

Lean Certification Elements…

  • 5S
  • A3/8D
  • Countermeasures
  • Error/Mistake Proofing (Poka Yoke) Flow
  • Gemba
  • Heijunka
  • Human Capital
  • Inventory Reduction (FIFO)
  • Jishu Kanri/Voluntary Management
  • Kaizen
  • Kanban
  • Lean Organizational Change Line
  • Balance – Load Levelling
  • Measuring Value
  • Office & Administration Lean
  • One-Piece Flow
  • Problem-Solving & Data Analysis Tools Process
  • Mapping
  • Pull vs. Push
  • Simulation
  • SICOP
  • SMED
  • Standard Work
  • Sustainable Change
  • TPM: Toyota Preventative Maintenance TPDS:
  • Toyota Product Development System
  • TPS: Toyota Production System
  • Value Stream Mapping
  • Visual Tools and Production
  • Work Cells

Service Pack 4 – Operational Improvement Analysis

Scenario:

  • Client has identified operational problem
  • Evidential data/information to prove problem is not available

Engagement Description:

  • Determine and acquire appropriate data to identify problem
  • Process data and deliver report proving problem
  • Propose solution

Team Requirement:

  • Initial consultation/project definition (2-3 days)
  • Configure OEE devices to acquire data (1 day per unique equipment item)
  • Ongoing project management (½ day per month per equipment item)
  • Data extraction and report generation (1-2 days per equipment item)

Service Pack 5 – Efficiency / Effectiveness Analysis

Scenario:

  • Client feels product line / production line / plant could be more productive, no specific problem identified
  • Evidential data/information to accurately describe effectiveness is available
  • Involves quantitative analysis
  • Qualitative analysis addresses people issues
  • Operational Effectiveness Analysis can be completed to complement the financial analysis

Engagement Description:

  • Determine and acquire appropriate data to accurately describe operational effectiveness
  • Process data and deliver effectiveness report
  • Propose effectiveness improvement plan
  • (Potential lead to implementation of solution)

Team Requirement:

  • Initial consultation/project definition (5-10 days)
  • Configure OEE devices to acquire data (1 day per unique equipment item)
  • Ongoing project management (½ day per month per equipment item)
  • Data extraction and report generation (1-2 days per equipment item)

Service Pack 6 – Operational Data Collection

Scenario:

  • Client (typically medium to large) is failing to adequately collect operational data
  • Inaccurate / ineffective operations reporting is the result
  • Management decisions are based on intuition and/or misleading information

Engagement Description:

  • Define optimal set of performance measures
  • Design and implement effective operational data collection and reporting system
  • Produce accurate management information

Team Requirement:

  • Initial consultation/project definition (5-20 days)
  • Configure OEE devices to acquire data (1 day per unique equipment item)
  • Design and develop performance measurement reporting system, or design and develop interface to existing ERP / EAM / CRM / simulation system(s) (10–180 days)
  • Client training (6–60 days)

Service Pack 7 – SME Performance Measurement

Scenario:

  • Small Medium Enterprise (SME) Client is failing to adequately collect operational data
  • Inaccurate / ineffective operations reporting is the result
  • Management decisions are based on intuition and/or misleading information
  • No ERP / EAM / CRM system(s) in place

Engagement Description:

  • Install standard performance measurement system

Team Requirement:

  • Initial consultation/project definition (2-3 days)
  • Configure OEE devices to acquire data (1 day per unique equipment item)
  • Client training (6–60 days)