1. Overall Equipment Effectiveness
Jim Welsh, LSSBB
Clinical Process Engineer

2. LEAN Improvement Approach
LEAN is a structured approach by an organization to systematically improve:
SAFETY
QUALITY
DELIVERY
COST
These are the basic components of customer defined VALUE:
Provide or produce only what the customer wants, when the customer wants it, only in the quantity requested by doing only those things required to transform raw material or provide a service.
OEE
4/1/2015

3. LEAN Improvement Approach
The LEAN approach to process improvement focuses on three value inhibiting activities:
Eliminate WASTE
Control VARIATION
Reduce COMPLEXITY (Overburden)
Following four basic rules:
All work should be highly specified as to content, sequence, timing, and outcome.
Every customer to supplier relationship should be direct and there must be an unambiguous yes or no way to send requests and receive responses
The pathway for every product or service must be simple and direct.
Any improvement must be made in accordance with the scientific method (PDCA), under the guidance of a teacher, at the lowest possible level of the organization.
OEE
4/1/2015

4. Providing What the Customer Wants
Think our business of it this way:
Demand:
Hours of Operation – 9:00 AM to 5:00 PM (8 Hours)
Current Patient Demand – 25 patients / day
Must complete imaging process in 19.2 minutes
Capacity:
Hours of Operation – 9:00 AM to 5:00 PM
Procedure Cycle Time – 40 minutes
Can accommodate – 12 patients / day
OEE
4/1/2015

5. Your Solution? Buy More Equipment? Turn Away Patients?
Increase Capacity?
OEE
4/1/2015

6. Equipment Utilization
What Makes Up the 40 Minute Procedure Cycle Time?
Loading and Unloading the Patient
Machine Changeover from Patient to Patient
Actual Procedure Time
Utilization Calculation:
TOTAL PROCEDURE TIME
TOTAL AVAILABLE SHIFT TIME
OEE
4/1/2015

7. From Utilization to OEE
Many companies measure equipment utilization with ‘hidden factors’ built in – for example, 90% utilization really means ‘90% of the 70% that we traditionally expect’
OEE sets a tougher standard, forces you to account for every minute of the day
A true OEE of 65% is often a bigger accomplishment than 90% utilization under a traditional measure
OEE
4/1/2015

8. Overall Equipment Effectiveness (OEE)
What is OEE?
Overall Equipment Effectiveness (OEE)
An global standard measurement for equipment effectiveness
A tool that reveals true equipment capacity
An total accounting of time for one piece of equipment
Overall Equipment Effectiveness (OEE) is a measure to evaluate the productiveness of a machine or a process area. The OEE data is used to analyze equipment performance, accounting for losses due to availability, performance, and quality
Overall Equipment Effectiveness (OEE) Implementation
2 Minutes
Purpose: To define OEE
Main Points:
Clearly, good TPM will have a great positive impact on improving OEE.
A new but old industry proven measurement of equipment efficiency.
Teaching Tips:
Ask;
To what extent do you know if you are getting optimum efficiency out of your equipment?
Do you really know your capacity of your equipment?
How much do you offload or outsource?
How often is your critical equipment in queue/waiting?
Transition: How consistently does the equipment in your plant run?
NEXT: OEE Typical Distribution
OEE
4/1/2015

9. OEE has an impact on the patient, company and technician / physician
OEE BENEFITS
A key point is reducing variability which allows predictability and enables other tools to be optimized. For example, with reduced variability, inventory can be reduced (safety stock is not accumulated) allowing pull systems to be fully embraced.
Patient
Improving OEE will allow a more reliable results and less appointment wait time.
Company
Understanding OEE provides a true view of capacity availability
Improving OEE frees up capacity to be utilized more effectively
Improved OEE is usually associated with improved quality and experience
OEE has an impact on the patient, company and technician / physician
Technician / Physician
Informs the operator of current machine/process conditions
Enables them to identify major losses, reduce lost time and maintain a more productive machine
OEE
4/1/2015
CH ssSS

10. OEE – six machine “losses”
How much time per shift was the machine actually running?
Availability
Downtime (Breakdowns)
Setup and Adjustments
How well did the machine perform (compared to the rated speed) when it was actually running?
Performance
Minor Stoppages
Speed and Rate
How many products were good the first time?
Quality
Defects and Rework
Pre-procedure Preparations
OEE
4/1/2015

11. OEE CALCULATION Calculating OEE: 0.75 (x 100 = 75%) 0.60 (x 100 = 60%)
EXAMPLE
Running time
Net operating time
360 minutes
480 minutes =
0.75 (x 100 = 75%)
Availability = =
Actual output
Target output =
648 lbs
1080 lbs
0.60 (x 100 = 60%)
Performance =
Good output
Actual output =
518 lbs
648 lbs
0.8 (x 100 = 80%)
Multiplying the three factors will calculate the OEE of the process.
Quality =
OEE = x 0.6 x 0.8 x = %
OEE
4/1/2015
CH ssSS

12. Prime Causes of Production Losses
Any production process seldom operates at optimum speed. A myriad of reasons or Negative Performance Impacts, mostly in combination, cause losses in productivity and therefore loss of money. These often include:
Process Saturation
There is no place for more output from the machine.
Equipment Failure
Machines break down, wear out, are not used properly and so on. All ends up in lost production time.
Patient changes
During the change over from one patient to another the machine settings must be changed, breakdown may occur and speed must be reduced.
Short Stops
For example, a bottle falls down in a bottling machine and the operator picks it up. These short but frequent events can be the reason for major time loss.
OEE
4/1/2015

13. Prime Causes of Production Losses
Operator Inefficiency
The operators like to have it nice and easy. They run with lower speed in order to guarantee smooth operation.
External reasons
Sometimes, the lab runs out of orders and the machines have to shut down. Or there can be a failure in the electrical power network far away from the point of service
Image Type
Some images are more difficult to capture. There are more breakdowns and quality problems.
Speed Losses
For one reason or another, the speed of the machine is not optimum.
Quality
Although the machine is running, the images are not good enough. These are the most expensive kinds of losses.
Missing Material
Patients or material is not avaialble.
OEE
4/1/2015

14. Improving OEE
What does OEE mean for me?
Everybody can contribute to improving OEE; raising OEE is a mutual effort of
Operators and Machine Attendants have to work together as a team and be proactive in order to be able to take quick countermeasures when a problem occurs
Technicians and Supervisors have to support the team as they try to make improvements that will allow the line to run in the most efficient manner
OEE
4/1/2015
© Distant Horizon 2015

15. ANALYSIS OF THE 6 BIG LOSSES – AVAILABILITY
Time losses for breakdowns and changeovers need to be understood to improve the availability rate
Breakdowns:
The machine stops for more than 3 minutes because something is broken or needs to be fixed
Examples
Positioning of patient is not possible due to table breakdown or faulty automation
Machine is shut off because of failures
Examples
Fixtures and/or material types need to be changed because of different procedure (product change)
Equipment fixtures/tools need to be changed (tool change)
Periodic tests must be performed for process quality or capability
Changeovers:
The machine stops because material or setups need to be changed between patients
OEE
4/1/2015

16. ANALYSIS OF THE 6 BIG LOSSES – PERFORMANCE
Time losses for idling and minor stoppages as well as speed losses need to be understood to improve the performance rate
Process Initiated Stops:
The machine has either no patients to process or it stops for short periods of time, often less than a minute
Examples:
Downstream equipment is idle because product supply from previous process is insufficient
Operators pause to “tweak” equipment (e.g., display adjustments)
Examples:
Actual index time for an automated line is longer than the ideal index time of 60 seconds (e.g., produced 30 images in an hour when we should have been able to make 60 images in that period of time)
Reduced speed:
The actual line speed is slower than the optimum speed
OEE
4/1/2015

17. ANALYSIS OF THE 6 BIG LOSSES – QUALITY
Time losses for unreadable, re-runs and start-up need to be understood to improve the quality rate
unreadable and rework (re-runs):
All images that either fail totally or don’t pass inspection the first time
Examples:
Products that are caught at the source and either reworked or inedible
Products that leave the process and return later for additional rework
Examples:
For processes that experience frequent starts/stops, significant losses can occur due to equipment ramp-up time (e.g., tools/fixtures need to warm up or require adjustments). During this period, excessive amounts of production time/units can be lost
Start-up losses:
All images that are rejected during start-up periods due to poor quality
OEE
4/1/2015

18. GENERATE IMPROVEMENT IDEAS
IMPROVING OEE –
GENERATE IMPROVEMENT IDEAS
EXAMPLE
OEE Factor
Main losses on machine
Improvement activities
Availability Rate
Understand and follow standardized sequence of activities for changeovers and positioning
Product changeover
Glue needle change
Glue shots
Improvement
focus for team
Keep lost time for transportation to a minimum, especially in the lab
Transportation practices
Equipment breakdown
Operator Care
Performance
Rate
Future improvements in re-positioning guides
Delays in re-positioning
Understanding what the root causes of the main losses will lead to generation of improvement ideas.
Describe the main loss and the improvement activity that is associated with it.
Training of new operators prior to on line assignment alone
Running machine at slower speed than required due to new people
Quality Rate
Structured feedback to front end.
Poor Contrast / Brightness
Improvement
focus for team
Re-runs due to inappropriate standards or inspection – rework!
Training of inspectors and implementation of standards
OEE
4/1/2015
CH ssSS

19. Key Take Away
OEE is a measurement of what was produced against what could have been produced. The gap identifies all losses for analysis.
Calculating OEE by multiplying the availability, performance and quality yields the same value as dividing valuable production time into the available time.
Identifying the discrete losses in the Big 6 “buckets” will lead to improvement ideas to increase OEE:
Breakdowns
Changeovers
Production stops
Reduced speed
Unreadable and rework
Pre-procedure losses
OEE
4/1/2015