Growy’s Lean Overall Equipment Efficiency (OEE) Tracking & Reporting App OEE is a monitoring calculation derived from Lean Manufacturing principles, and can be used across any industry reliant on production equipment. Many organisations see the value in the OEE approach, but do not have machinery capable of auto-reporting. This presentation is intended to assist people in using Growy’s Lean OEE Tracker, and tailor the App functionality to their own business needs. For feedback / further assistance please email damian@growy.com.au or via Facebook @Growth Improvements

Contents Why measure OEE ? Components of the OEE Calculation Visual OEE Breakdown App Functions App Workings Create & Edit Machines Availability Performance Quality Calculate Overall Efficiency Calculate Lost Opportunity Tips for Emailing Reports Damian Grow’s Bio © Growth Improvements Pty Ltd 2013

Why Measure OEE ? Overall Equipment Efficiency (OEE), otherwise known as Machine Efficiency, is a tool utilised by Lean Manufacturing principles. The aim is to reduce improve productivity by reducing waste and improving quality of your product. Absorbing waste / low quality levels reduces the profitability of businesses, which can often be measured in hundreds of thousands, even millions, of dollars. Many businesses accept excessive waste as ‘normal’, however it is usually a higher priority to solve once the true figures are known. Growy’s Lean OEE Tracker will assist in establishing baseline data and tracking your efficiency trends, as you methodically recover your financial Lost Opportunity. © Growth Improvements Pty Ltd 2013

Components of the OEE Calculation OEE comprises three key elements: Availability: % of time the machine runs compared to the allocated shift time. Performance: % of output compared to the machine’s designed capability. Quality: % of product produced Right First Time (RFT). OEE % = Availability x Performance x Quality World Class Standard for OEE is 85%, typically from: 90% Availability 95% Performance 99.5% Quality How do you think your machinery compares…? © Growth Improvements Pty Ltd 2013

Visual OEE Breakdown X X = % OEE AVAILABILITY % Downtime Losses Machine Actual Operating Time Downtime Losses Available Shift Time X PERFORMANCE % Machine Actual Performance Speed Losses Maximum Machine Capability X QUALITY % Right First Time Product Quality Losses = % OEE Maximum Quality of the Goods Produced © Growth Improvements Pty Ltd

App Functions Growy’s Lean OEE Tracker is available in iOS (Apple) or Android format. The App can track up to 10 machines, or specific product parameters from the same machine. It will demonstrate your machine’s OEE %, and the gap between your current state and the world class benchmark. It will demonstrate your annual, financial Lost Opportunity against your calculated efficiency, per machine / product. Excel based reports can be emailed at any time or stored for up to 60 data samples, for bulk upload. © Growth Improvements Pty Ltd 2013

Preparing to ‘Create Machine’ It is important to set up the Machine on the App, using the most accurate but easily accessible data. Determine the following: Availability: Determine if data be collected to the nearest minute of operating time, or are you better off using decimal places ie. 6.25 = 6hrs 15 minutes. Performance: Determine what is the Value Adding element of the machine’s function. Do you measure performance by Machine Speed (rpm, unit’s per minute, meters per minute etc). Or perhaps Machine Capability per Hour is what is recorded by the Operators ie. 1215 units per operating hour on average. Quality: Determine how Quality is measured for that machine. Is it a Scrap %, RFT Unit Count or via Starting versus Finishing Yield quantity? Production Time: What is the maximum time the machine ‘could’ operate in terms of hours, days, weeks per year? Costs: Is it better to allocate a cost per unit, or a productivity rate per hour? Does your business speak in terms of Sales costs, or Production Costs? Make it as consistent as you can. © Growth Improvements Pty Ltd 2013

Create Machine Production Measures: If you are having trouble allocating a set speed, or hourly capability, you might use the figure 60 in the Value Added Production field. This would represent the maximum number of minutes per hour your machine was performing it’s ‘Value Add’ task. Example, a metal machinist using a lathe might only be physically cutting steel (making swarf) for 32 minutes in every 60. The remainder is unload / reload of components, stopping for measurements etc. These are the tasks that need to be ‘optimised’ to improve the Performance % and therefore the OEE. Comments Box: Use this to make notes against the Machine Profile as a reminder of how the machine parameters were decided. © Growth Improvements Pty Ltd 2013

Edit Machine Naturally, parameters change from time to time. Shift lengths alter (8hrs to 10 hrs), Performance measures alter (upgraded drive motors for increased speed), and costs alter inline with financial year increments. The user can make adjustments to the Machine Profile at any time through the Edit Machine function. Alternatively, as the App will hold up to 10 machines, you may choose to set up profiles for multiple products that are created by the same machine. For example, a Bottling Line would perform differently when filling small bottles of free running liquid, compared to large bottles of soapy liquid. By tailoring the App to product level, you will gain more accurate data than using an average across all products manufactured. It’s up to you… !! © Growth Improvements Pty Ltd 2013

Calculating Availability Availability = Time Operating / Planned Time When creating the profile, use whatever the shift time is. Major Losses that detract from your availability are Breakdowns and Set Up times, and can also include lack of Raw Materials, No Operator available, Meetings, Training etc where the Machine is shut down to accommodate the interruption. If the user has the ability to identify the Operating Time down to the minute, that would give you better data accuracy. © Growth Improvements Pty Ltd 2013

Calculating Performance Three options are offered to calculate Performance: Units Produced: The average number of units for each hour of Operating Time. Machine Speed: The average speed of the machine for each hour of Operating Time. Value Added Production: The average number of minutes where the machine was producing it’s ‘Value’ for each hour of Operating Time. © Growth Improvements Pty Ltd 2013

Calculating Quality Three options are offered to calculate Quality: Reject Count: This asks you to enter how many units were produced Right First Time (RFT) and how many units were rejected (either as scrap or for rework). Scrap Percentage: Using this option, simply enter the scrap figure as a whole number ie. 4% scrap would be entered as 4. This will result in a 96% Quality metric. Yield Losses: Used often when transferring product from a large vessel to smaller packages ie. Started with 1000 litres, however due to spillage and a burst hose, only 960 litres were packaged. That would also result in a 96% Quality Metric. © Growth Improvements Pty Ltd 2013

Calculate Overall Efficiency Once you select the machine, the App will show you the OEE score for your last entry, and the gap between your score and the world class benchmark of 85%. Remember: World Class Efficiency = Availability 90%, Performance 95%, Quality 99.5%. You have the option of saving and emailing that entry worth of data, or waiting until a set time to email through a group of data points. If you do not wish to email the data, it will save itself simply by going back to the Dashboard. © Growth Improvements Pty Ltd 2013

Tips for Emailing Reports Ideally, the operator(s) would email the last shift’s worth of data to a central point (supervisor, production assistant etc) on a daily basis. That would allow for: Only a one day lag between the shift and the analysis; enabling problem solving to occur almost immediately, and If the Machine Operator(s) uses the email text field, they can send through a short description of the causes of low productivity ie. BD – 2.5H, Motor Trip, ELC ( Decoded: Breakdown for 2.5hrs due to Motor Trip, attended to by Electrical Contractor ) This will allow for 2nd tier analysis of issues that need resolving. However, for organisations that would prefer to use it simply as a monitoring system, then the function ‘Email Last 60 Samples’ exists, allowing for weekly, fortnightly or monthly data transfer, dependant on your organisations shift patterns. © Growth Improvements Pty Ltd 2013

25 years experience in Defence, Construction, Mining & Manufacturing Career Summary Maintenance management with Royal Australian Electrical & Mechanical Engineers Electrical construction of high-speed passenger ferries Field service technician within Northern Goldfields mining industry Services coordination and infrastructure maintenance management Senior Training and Business Improvement roles Lean / Six Sigma Black Belt Improvement highlights Contributed to $30m in mining improvements during FY09/10 GFC Facilitated over 200 improvement Lean / Six Sigma projects. Diploma Qualifications: Human Resources Training Competitive Manufacturing Management Cert IV Qualifications: Training & Assessment Frontline Management Advanced Certificate of Maintenance Engineering - Electrical