Date post: | 12-May-2015 |
Category: |
Business |
Upload: | lean-teams-usa |
View: | 1,221 times |
Download: | 3 times |
Apr 12, 2023 www.leanteamsusa.com 1
Robert BairdLean Teams USA
+1 215 353 0696
OEE Financial Savings From Component Improvements
Apr 12, 2023 www.leanteamsusa.com 2
OEE FactorsOEE = Availability x Performance x Quality
– Availability - Percentage of the actual amount of production time the machine is running to the production time the machine is available
– Performance - the speed at which the operation runs as a percentage of its designed speed
– Quality - the Good Units produced as a percentage of the Total Units Started. Referred to as First Pass Yield
Each Factor compared to a standard
𝑨𝒗𝒂𝒊𝒍𝒂𝒃𝒊𝒍𝒊𝒕𝒚=𝑶𝒑𝒆𝒓𝒂𝒕𝒊𝒏𝒈𝑻𝒊𝒎𝒆÷𝑷𝒍𝒂𝒏𝒏𝒆𝒅𝑷𝒓𝒐𝒅𝒖𝒄𝒕𝒊𝒐𝒏𝑻𝒊𝒎𝒆
Apr 12, 2023 www.leanteamsusa.com 3
LossesOEE Loss Category OEE Component Loss CategoryDowntime Losses Availability 1. Equipment Failure
2. Tooling damage3. Unplanned Maintenance4. Process warm up5. Machine changeover6. Material shortage
Speed Losses Performance 1. Product mis-feeds2. Component jams3. Product flow stoppage4. Level of Operator5. Equipment age6. Tooling wear
Quality Losses Quality 1. Assembled incorrectly2. Rejects3. Rework
Apr 12, 2023 www.leanteamsusa.com 4
World Class OEEOEE Factor World Class
Availability 90%
Performance 95%
Quality 99.9%
OEE 85%
Which Process to Improve OEE
• Weighted Average Method• Value Added = Product Revenue – COGS
Apr 12, 2023 www.leanteamsusa.com 5
Process OEEValue 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%
Financial Performance of the Operation
CONSIDERING VALUE ADD WHICH PROCESS WOULD YOU IMPROVE OEE
Apr 12, 2023 www.leanteamsusa.com 6
Cost Avoidance
OEE
$ CAPEX
Apr 12, 2023 www.leanteamsusa.com 7
Case Study• 30% improvement in downtime, 10%
improvement in speed losses, and 2.6% quality improvement
OEE Factor Result BeforeAvailability 300 71.4%
Performance 21,300 71%
Quality 20,200 94.8%
OEE 48.1%
OEE Factor Result AfterAvailability 390 92.8%
Performance 30,459 78.1%
Quality 29,636 97.3%
OEE 70.5%
Apr 12, 2023 www.leanteamsusa.com 8
Case Study Financials
• Before
• After𝑅𝑒𝑣𝑒𝑛𝑢𝑒=20,200∗$5.00=$101,000
𝑅𝑒𝑣𝑒𝑛𝑢𝑒=29,636∗$5.00=$148,180
46.7% Revenue Gain
Apr 12, 2023 www.leanteamsusa.com 9
Case Study Financials• Before
• After
-25.2% COGS
Apr 12, 2023 www.leanteamsusa.com 10
Case Study Financials• Before
• After
-34.5% Labor Efficiency 𝑫𝒊𝒓𝒆𝒄𝒕 𝑳𝒂𝒃𝒐𝒓 𝑬𝒇𝒇𝒊𝒄𝒊𝒆𝒏𝒄𝒚 𝑽𝒂𝒓𝒊𝒂𝒏𝒄𝒆=𝑺𝒕𝒂𝒏𝒅𝒂𝒓𝒅𝑹𝒂𝒕𝒆∗(𝑺𝒕𝒂𝒏𝒅𝒂𝒓𝒅 𝑯𝒐𝒖𝒓𝒔−𝑨𝒄𝒕𝒖𝒂𝒍 𝑯𝒐𝒖𝒓𝒔)
Apr 12, 2023 www.leanteamsusa.com 11
ALWAYS VISUALLY MANAGE
PROGRESS
Guaranteed ROI From Lean Teams USAContact Us
• Lean Teams USA Lean Consulting
• View My Profile on LinkedIn
• Lean Teams USA +1 215 353 0696
Apr 12, 2023 www.leanteamsusa.com 12