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Page 1: OEE Overall Equipment Effectiveness an important KPI for ... · An OEE score of 100% represents perfect production, manufacturing only good parts, as fast as possible, with no down

© Copyr i gh t 2015 O SIs o f t , LLC .

Presented by

OEE –

Overall Equipment Effectiveness

an important KPI for Operational

Intelligence

Thomas J. Lang

Copyright: Thomas J. Lang

Page 2: OEE Overall Equipment Effectiveness an important KPI for ... · An OEE score of 100% represents perfect production, manufacturing only good parts, as fast as possible, with no down

© Copyr i gh t 2015 O SIs o f t , LLC . 2

• OEE and the usage within BCS

• Special application of OEE at Frankfurt site

• Benefit

Agenda

Copyright: Thomas J. Lang

Page 3: OEE Overall Equipment Effectiveness an important KPI for ... · An OEE score of 100% represents perfect production, manufacturing only good parts, as fast as possible, with no down

© Copyr i gh t 2015 O SIs o f t , LLC .

The meaning of OEE

3

OEE (Overall Equipment Effectiveness) is a “best practice” metric that

identifies the percentage of planned production time that is truly productive.

An OEE score of 100% represents perfect production: manufacturing only

good parts, as fast as possible, with no down time.

Therefore OEE can be also an important number/metric within an MES

system, for global and local Management.

Copyright: Thomas J. Lang

100% (Perfect) 90% (World Class) 80% (Typical) 60% (Low)

Page 4: OEE Overall Equipment Effectiveness an important KPI for ... · An OEE score of 100% represents perfect production, manufacturing only good parts, as fast as possible, with no down

© Copyr i gh t 2015 O SIs o f t , LLC .

The classical OEE definition is mainly used by the

global management with a focus on ROI

4

Maximum

OutputMax. performance

of production line

Equipment, personal,

material, logistics

available

Required

quality

Overall

Equipment

Effectiveness (OEE)

= Availability x Performance x Quality

• KPI for the return on

invested capital

• calendar year

• percentage of the

real losses

• Rate of losses generated

by downtimes

• Downtimes

• missing personal

• disruption of plant

• no order

• Missing material

• Missing energy or

other supplies, etc.

• Changeover times

• Produced quantity/

planned quantity

• Target quantity

means the theoretical

plant quantity (or the

ever shown best

quantity)

• Quality is the criteria for

in spec product

and calculated as:

Quality =

Good Pieces / Total Pieces

=

Copyright: Thomas J. Lang

Page 5: OEE Overall Equipment Effectiveness an important KPI for ... · An OEE score of 100% represents perfect production, manufacturing only good parts, as fast as possible, with no down

© Copyr i gh t 2015 O SIs o f t , LLC . 5

The KPI OEE is explicitly important for capital

intensive industries

Business sector:

Services

Retail business

Banks

Automotive

Machine building

industry

….

….

Chemical

industry

Leverage to increase ROI:

Maximum usage (productivity) of

invested capital

KPI: OEE

Ca

pita

l in

ten

sve

ind

ustr

ies

Imp

ort

an

ce

ofR

etu

rn o

n

Inve

stm

en

t (R

OI)

Copyright: Thomas J. Lang

Page 6: OEE Overall Equipment Effectiveness an important KPI for ... · An OEE score of 100% represents perfect production, manufacturing only good parts, as fast as possible, with no down

© Copyr i gh t 2015 O SIs o f t , LLC .

Within a 24/7 production - the global OEE definition can

be used on a production site…

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• OEE is the identical definition

• Demand is real high, the production plant

runs continously without any stops

• Quality: First pass rate

• OEE is product from the factors availability,

performance and quality

• Availability: 365 d - 24 h

• Perfomance: Performance takes into account

Speed Loss or maximum production

• Quality: First pass rate

© 2009 Agamus Consult - All rights reserved

090515_OEE_Steuerung.PPT6

Die technische Kapazität orientiert sich an den technischen Möglichkeiten der Anlage

Definition technische Kapazität

DefinitionDefinition

Die technische Kapazität ist die vorgegebene Menge für eine Anlagengruppe oder einen Fertigungsbereich und ...

… orientiert sich an den technischen Möglichkeiten der Anlage weil eine zu hohe technische Kapazität zu überhöhter Abnutzung und damit zu hohen Kosten führen kann.

... ist an den Engpassanlagen der Anlagenkette orientiert: GA 50: Verseifer; ACM: Destillation

... ist bezogen auf den Tag um den Bezug zum Abrechnungsmonat herzustellen

... kann sich ändern durch Änderungen in der Anlage bzw. dem Verfahren

• GA 50: 25 to/Tag

Die technische Kapazität ist die vorgegebene Menge für eine Anlagengruppe oder einen Fertigungsbereich und ...

… orientiert sich an den technischen Möglichkeiten der Anlage weil eine zu hohe technische Kapazität zu überhöhter Abnutzung und damit zu hohen Kosten führen kann.

... ist an den Engpassanlagen der Anlagenkette orientiert: GA 50: Verseifer; ACM: Destillation

... ist bezogen auf den Tag um den Bezug zum Abrechnungsmonat herzustellen

... kann sich ändern durch Änderungen in der Anlage bzw. dem Verfahren

• GA 50: 25 to/Tag

Technische Kapazität

Technische Kapazität

Plan-Taktzeit

Ist-Menge

: Ist-Taktzeit

technischeKapazität

VerfügbarkeitVerfügbarkeit Leistungs -faktor

Leistungs -faktor

Qualität-faktor

Qualität-faktor

x x =Anlagen-

effizienz(AE)

Anlagen-effizienz

(AE)

OEE- definition by BCS Global Production time 7 days 24 h

=

Copyright: Thomas J. Lang

Page 7: OEE Overall Equipment Effectiveness an important KPI for ... · An OEE score of 100% represents perfect production, manufacturing only good parts, as fast as possible, with no down

© Copyr i gh t 2015 O SIs o f t , LLC .

……. but BCS at Frankfurt site made a further development

to maximize the local benefit of the KPI OEE

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• The classical OEE-definition is a good definition for

plants producing within 24 h/7 d, in a 1- to 3- shift

production this definition isn‘t perfect

• In the chemical industry the separation into the

availability- and the performance -factor is for a

continuous running plant often very difficult

• The OEE-factors availability and performance don’t

deliver any information about the reasons for the

downtime (continuous improvement isn’t possible)

• In our special case no sufficient information about

the performance and the weaknesses were delivered

by this KPI

Weak points of OEE from a local view

Enhancement

of the OEE

required

Copyright: Thomas J. Lang

Page 8: OEE Overall Equipment Effectiveness an important KPI for ... · An OEE score of 100% represents perfect production, manufacturing only good parts, as fast as possible, with no down

© Copyr i gh t 2015 O SIs o f t , LLC .

The separation of availability and performance losses is difficult

to use for best practice in a continuous operated plant

8

Classification of an availability and performance (yield) loss shown in a real time example (e.g. chemical plant)

100 % OEE

Copyright: Thomas J. Lang

Page 9: OEE Overall Equipment Effectiveness an important KPI for ... · An OEE score of 100% represents perfect production, manufacturing only good parts, as fast as possible, with no down

© Copyr i gh t 2015 O SIs o f t , LLC .

…on the other hand a local definition has to be adopted

to the site specific situation

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• Equipment

• Staff

• Material

• Utilities, services

• Rework to be done

• Unrecoverable, out-of-spec

product

Types of losses classical OEE for Produktion

can be influenced

• Intentional slowdown

• Market / product demand and

higher forces

can‘t be

influenced

max. achievable

OEE rate for a 1-

shift production

can be

<= 23%

The consequence means to skip all types of losses that can‘t be influenced by the site (within

the OEE 100% definition)

Result: Introduction of a KPI Site-specific Equipment Effectiveness (SEE) as a control devicce

Copyright: Thomas J. Lang

Page 10: OEE Overall Equipment Effectiveness an important KPI for ... · An OEE score of 100% represents perfect production, manufacturing only good parts, as fast as possible, with no down

© Copyr i gh t 2015 O SIs o f t , LLC .

In contrast to the traditional OEE-definition – losses

will be adopted to the origin (company)

10

lossess

OEE

(global)

losses

SEE

(site)

SEE = SEEtechnical + SEELogistics + SEEproduktion + SEEothers

Copyright: Thomas J. Lang

Page 11: OEE Overall Equipment Effectiveness an important KPI for ... · An OEE score of 100% represents perfect production, manufacturing only good parts, as fast as possible, with no down

© Copyr i gh t 2015 O SIs o f t , LLC .

Result: OEE/SEE continously improves

11

Adaption of 100 % definition by 10%

96 %

79 %

Copyright: Thomas J. Lang

Page 12: OEE Overall Equipment Effectiveness an important KPI for ... · An OEE score of 100% represents perfect production, manufacturing only good parts, as fast as possible, with no down

© Copyr i gh t 2015 O SIs o f t , LLC .

As shown above, a measurable additional

value could be achieved by increasing the

productivity e.g. production increase from

e.g. 79% to 96 %

Solution(s) Results and Benefits

OEE/SEE – a beneficial tool to improve the production

Business ChallengesOEE is a mixture of a corporate approach

and helps to identify process goals – helps

to increase yield, improve efficiency and

effectiveness

OEE/SEE is a Business solution, which

can show you a potential weakness in

your production assets/process

OEE (Overall Equipment Effectiveness) is a “best practices” metric thatidentifies the percentage of planned production time that is trulyproductive. An OEE score of 100% represents perfect production,manufacturing only good parts, as fast as possible, with no down time.

OEE is useful as both a benchmark and a baseline.

As a benchmark it can be used to compare the performance of a givenproduction asset to industry standards, to similar in-house assets, or toresults for different shifts working on the same asset.

As a baseline it can be used to track progress over time in eliminatingwaste from a given production asset.

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Copyright: Thomas J. Lang

Page 13: OEE Overall Equipment Effectiveness an important KPI for ... · An OEE score of 100% represents perfect production, manufacturing only good parts, as fast as possible, with no down

© Copyr i gh t 2015 O SIs o f t , LLC .

Thomas J. Lang

[email protected]

• Consultant (former BayerCS AG)

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[email protected]

• Consultant (former BayerCS AG)

Copyright: Thomas J. Lang

Page 14: OEE Overall Equipment Effectiveness an important KPI for ... · An OEE score of 100% represents perfect production, manufacturing only good parts, as fast as possible, with no down

© Copyr i gh t 2015 O SIs o f t , LLC .

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THANK YOU

14Copyright: Thomas J. Lang