www.mesa.org2008 North American Plant-to-Enterprise ConferenceSeptember 21-23, Orlando, FL

Metrics for Diagnostic Purposes

Steven KaplanGlobal MES Administrator

The following Strategic Initiatives of MESA International are associated with

this presentation:

Lean ManufacturingQuality & Regulatory Compliance

Real-Time Enterprise

Using Metrics to Diagnose Issues = Lower Costs

Cos

t Of

Res

olut

ion

DISCOVERY TIME

COST OFRESOLUTION

Low

High

TrendNCR

CAPA

Complaint

Recall

Immediate Extended

NCR: Nonconformance Report

CAPA: Corrective and Preventive Action

Study Background

• MESA Metrics sub-group: – Several companies, different disciplines and

manufacturing methods

• What was successful – Common metrics or current base line metrics – Unique metrics – Why utilized, drivers, how metric was developed

• Key: What these companies do with the metrics.

Contributing Companies

• Murata Power Solutions - electronics• National Starch - starch• RobMax BiWMetrics - robotics• Ablestik - adhesives• Teknikum Group Ltd. – rubber hoses• Camstar – software

Note: others participated in discussions & review

CorporateGoals Benchmark

Data

DataCollection

Manufacturingranked KPI's

Frequency ofReporting

AdditionalData Input

SupportSystems

Performance Managementin Manufacturing

Deviations

Root CauseAnalysis

Presentationof Data

CorrectiveActions TrendsCheck

Results

AlarmSystem

PatternDetection

PreventiveActions

Definitions

• A metric is a quantitative value measuring or assessing a given process (derived from wikipedia). Some people simply call metrics: Performance Indicators.

• A KPI is a specialized metric assessing performance to a corporate goal (thus the word Key in KPI).– Aggregate data from multiple systems– Set by departments to meet goal– Prioritized by importance

OEE: A Proven Aggregate Metric

Overall Equipment Effectiveness

OEE = Availability x Performance x Quality / 100

86.7% Availability x 93.0% Performance x

95.0% Quality = 76.6% OEE

Corporate

• Corporate goals are not only financial– Balanced Scorecard: customer; internal business

processes; learning and growth; financial • Promote a Non Penalizing culture• Processes must have owners at each area• Plant managers should own the process• Everyone needs to be looking at the same metrics

– Definition– Calculation– Input variables

Support Systems

• Defined as: Systems to collect, measure, evaluate and report data and corporate processes and process controls

• Should include– Web-based tools – Access systems– Access points– Calculation tables

Achieve greater results with: Machine, device or tool integrated visual detection / bar code system

Frequency of Reporting: Considerations

1. Real Time varies by plant: 1X/day, by usage2. Question: is manual input needed for data generation

or processing?3. Frequency ok as a criteria, if the data is truly also

evaluated and studied on the same timescale.4. The frequency of reporting can be driven higher, if data

is available – and evaluation will leverage this addition.

Benchmark Data

Categorize By:Departmental, Corporate, Industry, and the World

• Utilize single measurements that encompass key KPI's– Throughput - Score Carding – Averaging Metrics

• Use historic data and industry benchmarks to set goals• Set higher expectations as progress• Incorporate Lean Manufacturing Principles• Establish Six Sigma Methodology

– identifies areas of concern

Data Collection

• From production line / machine / man• Error messages by department• Quality assurance data: electronic &

manual• Transactional data from MES systems,

LIMS, ERP, etc.

Alarms

A method of signaling the occurrence of some undesirable event

• Email• Text Messages• Visual Alerts • Audio Alerts• Automated Actions

Review of OEE Analytics — Root Cause Analysis

A trigger is set to notify when downtime exceeds 30 minutes in an 8 hour period.

With the trigger, we could have the

notifications 2 days sooner.

This would eliminate

downtime by almost 2.5 hours

Note the downtime occurred 3 days without a trigger for action

Alarm Triggers: Ability to Proactively Prevent Problems

Setting The Goal

• Normalizing a driven goal to a percentage for manufacturing is an obstacle to overcome.

REDUCE SCRAP BY 10%

Presenting the Data

Presenting the Data

Visual Score Card KPIs

This takes all the KPI's in a plant and sets real expectations against them. With this, numerical scores are determined per KPI.

In a multi-plant environment these scores determine who's 'best', to generate improvement via competition.

• Why– To develop daily, forward-

looking metrics that directly correlate with OTS goals

• Demand Forecast• Production Efficiency• Schedule Adherence

• Expectations– Daily Dashboard is updated

each morning– Posted daily in each

manufacturing department– Reviewed once daily at

production planning meetings

Daily Dashboard Metrics

• Why– To develop daily, forward-

looking metrics that directly correlate with OTS goals

• Demand Forecast• Production Efficiency• Schedule Adherence

• Expectations– Daily Dashboard is updated

each morning– Posted daily in each

manufacturing department– Reviewed once daily at

production planning meetings

Daily Dashboard Metrics

Root Cause Analysis & Pattern Detection

Root Cause Analysis• Strong Portals with good

BI tools can drill down to cause of a trend

• Asking 5 times WHY?• Strong failure analysis

team, empowered to take corrective measures

Pattern Detection• Weekly, monthly and

quarterly multi-discipline team reviews

• Productivity by "shifts", with training implied for those with low efficiency

• Compare past data base info on deviations and root causes

Corrective Action

• Drive negative trends back to area of cause then corrective action

• Nominate responsible person• Give deadlines• Tiger team selects actions based on impact & speed

of implementation• Provide on-line help • Auto-trigger with manual intervention option to

confirm "corrective action and follow up" etc...• Review corrective actions in one plant in detail prior

to implementing in other plants

Check Results

– Compare the results achieved with benchmarks before the project was implemented.

– Review benchmarks in a global manner. – Revisit KPIs and metrics definitions to improve

accuracy and ensure they represent the process– Performance Management is a continuous cycle

The Deming Cycle

Plan

Act Do

Check

KPI’s In ActionThe 3 P’s

• Predictive– Automatically and manually analyze patterns and events in real

time– Continuously monitor manufacturing and quality information

• Proactive– Allow automatic and manual intervention and adjustment of

processes– Provide actionable Intelligence

• Preventive– Elevate information to knowledge– Best practices and processes based on process understanding– “Closing the loop”

• Right First Time (Viscosity):2008 Right First Time

88%

90%

92%

94%

96%

98%

100%

YTD Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec

China Japan Korea UK USA Global

Note: To improve RFT in USA, adjustment data is being tracked by product and batch, enabling the development of a paretoanalysis to determine the worst offending products.

Hybrid First Inspection

0100200300400500600

11/2/

2007

11/16

/2007

11/30

/2007

12/14

/2007

12/28

/2007

1/11/2

008

1/25/2

008

2/8/200

8

2/22/2

008

3/7/200

8

3/21/2

008

4/4/200

8

4/18/2

008

PPM

Ablestik

Murata-PS

Ablestik supplies Murata-PS with Epoxies & Pre-formsBoth companies participated in this study

Your KPIs Effect Your Customers’ Results

• Right First Time (Viscosity):2008 Right First Time

88%

90%

92%

94%

96%

98%

100%

YTD Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec

China Japan Korea UK USA Global

Hybrid First Inspection

0100200300400500600

11/2/

2007

11/16

/2007

11/30

/2007

12/14

/2007

12/28

/2007

1/11/2

008

1/25/2

008

2/8/200

8

2/22/2

008

3/7/200

8

3/21/2

008

4/4/200

8

4/18/2

008

PPM

Ablestik

Murata-PS

Your KPIs Effect Your Customers’ Results

Coincidence ?

Challenges

People & Process• Operation that finds a

fault is not always the operation causing it

• Queue & Lead times can prevent quick resolutions to a problem

• Set Up Times not measured

IT Systems• Multiple systems are very

fragmented• Separate quality control

system for corrective action• Some machines do not have

an access point to automatically collect data

• No Communication between the reporting systems

Comments

• Performance management = processes, not a tool or ability to see the KPI

• Actionable intelligence is the goal• Defining & extracting metrics is toughest

– Auto presentation of the data is the 'minor' part of the battle– Junk wrapped in a pretty facade is still junk

• Trends matter more than actual • Focus on the whole context not the metric• Companies missing aspects will fall short

Metrics for Diagnostic Purposes Working Group

• Company Profiles & Submissions: • Steve Kaplan, Murata Power Solutions• Jian Xu, National Starch• Nicolaus von Baillou, RobMax_BiWMetrics• Greg Agnew, Ablestik• Vesa vihavainen, Teknikum Group Ltd• Gilad Langer, Camstar

• Metrics Co-Chairs: Julie Fraser, Principal Analyst, CambashiJonathan Siudut, Exec. Software Proj Mgr, IBMSteven Kaplan, MES Administrator, Murata Power Solutions

• MESA Contact:Brandy Richardson

Next Up For Metrics

• Metrics for Diagnostic Purposes

– White Paper Soon to be available at: www.mesa.org– MESA Member Contact: Steven Kaplan, Murata Power Solutions

• Operational Metrics Ties to Financial Metrics & Outcomes

– MESA Member Contact: Darren Riley, Rockwell Automation

• Plant-Warehouse Metrics for End-to-End Execution Success

– MESA Member Contact: Julie Fraser, Cambashi