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Lean Enterprise and Cost Reduction

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Shared by: qinmei liao
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posted:
11/12/2011
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Latest Techniques to improve your

Overall Equipment Effectiveness (OEE), Cycle Time and Plant

Productivity



PARTICIPANTS

Mangers, Engineers who are responsible for: Production Lines & Plant Operations,

Maintenance Planning & Follow Up, Production Planning & Scheduling, Workflow

Studies, Time & Motion Studies

PROGRAM OUTLINE

1. INTRODUCTION

 Benefits of measuring Cycle Time, Productivity & OEE

 Role of different parties in measuring & analyzing Cycle Time,

Productivity & OEE

 Measuring, analyzing and solving problems of Cycle Time, Productivity

& OEE

2. MATERIAL FLOW PRINCIPLES

 Basic Definitions

Throughput WIP turn rate Takt Time

Cycle Time Standby Time Active & Passive

Buffer

Work-in-Process Time to re-instate Rebatching

WIP (TTR)

 Material Flow Principles:

CLEARING FUNCTION

Conservation of Material

Principle

Capacity Principle

Little's Law LITTLE’S LAW

Variability Principles

Variability Buffering Principle

Batching Principles

Serial Process Batching

Principle

Parallel Process Batching

Principle

3. CYCLE TIME ANALYSIS

 Total Cycle Time Concepts

 Cycle Time Calculation with a Rework Loop

 Cycle Time Analysis: Setup Time - Processing Time - Processing

Times -Waiting Time Analysis

 Cycle Time Efficiency Time & Productivity Analysis

 Cycle Time Management (CTM) Total Time T

4. PRODUCTIVITY ANALYSIS

Active Time T5 In active T4

 Productivity & Operations:

The relation between Slitting Line Up Time T1 Down Time T6 In active T4

Productivity, and: Net Productivity,

Total Cycle Time, Performance Up Time T1 Planned T2 Unplanned T 3 In active T4



Rate, Quality Rate (Quality Yield), Production P P T1 T5

x

Material Yield T otal Productivity =

Time

=

T

=

T1 T5

x

T



 Productivity & Production Planning &

Net Productivity

Net Productivity Mechanical Utilization Factor

Utilization Factor

Scheduling: Mechanical

Availability

Availability



The relation between Productivity,

and: Uptime, Non-Scheduled Time, Scheduled Downtime, Utilization

Factor, and Physical Availability

 Productivity & Maintenance :

The relation between Productivity and: Mean Time Between Failures

MTBF, Mean Cycles Before Failure MCBF, Mean Time To Repair

(Recovery) MTTR, ……

 Productivity & Cost :

The relation between Productivity and different types of Cost: Unit Cost, Hour Cost,

Batch Cost

5. OVERALL EQUIPMENT EFFECTIVENESS (OEE) & SIX BIG LOSSES

OEE = Availability Rate x Performance Rate x Quality Rate

(Yield)

 OEE calculation methods

 Method 1—Using Nakajima formulas The OEE and the Six Big Losses of TMP

 Method 2—Using event time records 1. Equipment Failure and

Breakdowns Availability

 Method 3—Using product based calculations 2. Set-ups and Adjustments

 World-Class OEE (according to Nakajima) 3. Idling and Minor Stops

4. Reduced Speed Performance

 Total Effectiveness Equipment Performance

(TEEP) 5. Reduced Yield

Quality

6. SIX COMPONENTS OF MAINTAINABILITY 6. Scrap

1. Elemental Activities

2. Malfunction Active Repair Time:

 Preparation time  Part procurement time

 Malfunction verification  Repair time

time

 Fault location time  Final malfunction test time

3. Malfunction Repair:

 Malfunction active  Malfunction

repair time administrative time

4. System Repair Time

5. System Downtime:

 System logistic time  System repair time

 System final test time

6. Total System Downtime is a combination of the distributions of

 Initial delay  System downtime

7. OPTIMIZING PRODUCTION LINE PERFORMANCE

 Effect of variability level on operating Curve

 Synchronizing the 4 M’s in production

 Determining Optimal Lot-Size

 Impact of dispatching rules on Production line performance

 Effect of Maintenance Strategy on operating Variability



Operating Curve for different Variability Levels



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