Design For OEE (DFOEE)
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This document discusses Design for Overall Equipment Effectiveness (DFOEE), which aims to highlight areas for improving production equipment during the design stage. It provides questions to consider regarding costs, throughput, waste reduction, energy efficiency, quality, maintenance and other factors. The goals are improving ROI, minimizing losses like breaks and setups, and designing for flexibility and flow. Benefits include cost savings, quality gains, reduced training and maintenance needs, and improved overall equipment effectiveness. Companies are encouraged to contact Lean Teams USA to discuss utilizing DFOEE and guaranteed returns.
Design For OEE (DFOEE)
- 1. Robert Baird Lean Teams USA +1 215 353 0696 Design For OEE (DFOEE) 10-May-14 1www.leanteamsusa.com
- 2. 10-May-14 2
- 3. 10-May-14 3 Making losses more Transparent. Highlighting areas for improvement during the Design Stage of new production equipment
- 4. DFOEE Equipment Design Questions • How much operational cost can we save, equipment ROI improvement? • What is the most effective throughput for the system? • How can we improve the “Six Big Losses”? • How can we build in energy efficiency? • Which components must improve related to scrap? • How can we minimize transportation within the machine? • How can we minimize changeover time? • How can we design for product flexibility? • What are the safety and ergonomic concerns? • How to improve preventative maintenance (modular components)? • How can we simplify Autonomous Maintenance tasks? • Can the design combine the prior or next operation or both? • Can operation be simplified, improving training time? • How can we standardize the input and output for prior and next operation?10-May-14 4
- 5. Design For Performance • Increase speed – Switching from pneumatic to servomotors, 45% throughput increase • Increase Speed – Limiting wasteful transportation of product and application motion, 100% throughput increase 10-May-14 www.leanteamsusa.com 5
- 6. SixBigLosses Loss Category OEE Loss Category Examples Breakdowns Down Time Loss • Tooling Failure • Unplanned Maintenance • General Breakdowns • Equipment Failure Setup and Adjustments Down Time Loss • Setup • Material shortages • Waiting for next operation • Operator shortages • Major adjustments • Warm-up time Small stops Speed Loss • Obstructed product flow • Component Jams • Misfeeds • Sensor Blocked • Delivery Blocked • Cleaning/Checking Reduced Speed Speed Loss • Rough Running • Tool Wear • Under Design Capacity • Equipment Wear • Operator Inefficiency/ability Startup Rejects Quality Loss • Scrap • Rework • In-Process Damage • In-Process Expiration • Incorrect Assembly Production Rejects Quality Loss • Scrap • Rework • In-Process Damage • In-Process Expiration 6
- 7. SixSevenBigLosses Loss Category OEE Loss Category Examples Waiting Down Time Loss • Product from previous operation • Information • Instructions • Skill 7
- 8. Hidden Cost Reduction Expense not normally included in the purchase price of equipment 10-May-14 8 Six Big Losses
- 9. Basic DFOEE Concept >Equipment ROI & System Flow Equipment and Flow Losses 10-May-14 www.leanteamsusa.com 9
- 10. System Approaches 10-May-14 10 Armand V. Feigenbaum
- 13. Design For OEE (DFOEE) 10-May-14 13 Process 1 20 Units/min Process 2 15 Units/min Process 3 20 Units/min = Process Output 15 Units/min
- 15. Which Process to Improve OEE 10-May-14 www.leanteamsusa.com 15
- 16. Which Process to Improve OEE • Weighted Average Method • Value Added = Product Revenue – COGS 10-May-14 www.leanteamsusa.com 16 Proces s OEE Value Add Value % OEE Value 1 85.0% $44,320 22.5% 19.2% 2 60.0% $51,005 25.9% 15.6% 3 77.0% $42,315 21.5% 16.6% 4 82.0% $48,900 24.9% 20.4% 5 55.0% $10,100 5.1% 2.8% Total $196,640 100.0% 74.5% 3.8% 20.8% Vs
- 17. DFOEE Benefits • System flow improvements (Quality Cost Delivery) • COGS improvement • Hidden cost reduction • Energy efficiency • Improvement resources focused on value add • Reduced Equipment Operator training time • Fast changeover • Quality improvement • Reduced maintenance time and cost • Safety and ergonomic improvement • World Class OEE 10-May-14 www.leanteamsusa.com 17
- 18. Guaranteed ROI From Lean Teams USA Contact Us • Lean Teams USA Lean Consulting • View My Profile on LinkedIn • See my DFOEE Blog • Lean Teams USA +1 215 353 0696 • @Robertbaird10 10-May-14 www.leanteamsusa.com 18
Editor's Notes
- #5: What is the most effective throughput for the system?Manufacturing cell relatedContinuous flow related (Versus a discrete manufacturing system)How can we improve the “Six Big Losses”?Do we have current best practices to applyError proofing devices (sensors, vision systems)
- #7: One of the major goals of TPM and OEE programs is to reduce and/or eliminate what are called the Six Big Losses – the most common causes of efficiency loss in manufacturing. The following table lists the Six Big Losses, and shows how they relate to the OEE Loss categories.
- #8: One of the major goals of TPM and OEE programs is to reduce and/or eliminate what are called the Six Big Losses – the most common causes of efficiency loss in manufacturing. The following table lists the Six Big Losses, and shows how they relate to the OEE Loss categories.
- #11: "Total quality control is an effective system for integrating the quality development, quality maintenance, and quality improvement efforts of the various groups in an organization so as to enable production and service at the most economical levels which allow full customer satisfaction."
- #17: The simple OEE average is (85% + 60% + 77% + 82% + 55%) ÷ 5 = 75.8%Using the weighted average approach and looking at the total plant we must consider the impact of value add to determine which process to improve to get the most benefit. In this example you would be tempted to improve Process 5 but this only yields a 1% gain for a 20% improvement in OEE – Example: Process 5 improves to 75% OEE 75 * 5.1% = 3.8% and the new Plant OEE is now 75.5% while improving Process 2 to 80% * 25.9% = 20.8% and resulting Plant OEE is now 79.7% The advantage of using the weighted average method is that it integrates overall equipment performance with the actual financial performance of the plant.
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