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TPM Loss Analysis

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TPM LOSS - ANALYSIS Suni Vatnhamar 2016 1
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Page 1: TPM  Loss Analysis

Suni Vatnhamar 2016 1

TPMLOSS -

ANALYSIS

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2

Total Productive Maintenance

Loss analysis: a method to improve machine utilization

A presentation arranged by Suni Vatnhamar 2016(MBA – B.SC. Technical Engineering)

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3

CONTENT

Suni Vatnhamar 2016

• Active use of the KPI’s – Policy Deployment

• Loss analysis

• OEE in detail

• KPI and loss driven improvement process

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Suni Vatnhamar 2016 4

CONTENT• Active use of the KPI’s – Policy Deployment

• Loss analysis

• OEE in detail

• KPI and loss driven improvement process

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THE COCKPIT

Suni Vatnhamar 2016 5

The vision and strategy is the way ahead The KPI’s (Key Performance Indicator) are the

instruments to take the right actions to bring us towards the vision

Strategy and visionOEE Reject rate

Delivery precition

EVA

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OPERATIONAL SHOP FLOOR TARGETS

Suni Vatnhamar 2016 6

Targets for all departments and organisational levels

”What you do not measure – you can not improve” The closer you are to the problem, the more often you need to

follow up Working towards a target is motivating and builds team spirit

SHIFT DAYWEEK KPI’s for me need to be

Measureable Directly influenced by my

performance Directly linked to the site strategy

and KPI’s

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KPI DEPLOYMENT

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Vision/Strategy

Target

Target

TargetOperator/shop floor teams

Shift leader

Production manager

KPIGeneral Manager(Plant manager)

• Maximum 3 KPI’s on shop floor level

• KPI’s per level based on “red” KPI’s and loss analysis

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POLICY DEPLOYMENTAction PlanAction Plan

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3 years

1 year

Month

Week

Day

Shift

Hour

Act – Create standards to sustain result

Strategy

Budget targets

Operational targets

Plan – ”Red” numbers. Improvement plan

Check – Did it work? What was the result?

Do – Analysis of why and carry out actions

Action plan

DAILY ACTION PLAN

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VISUAL CONTROL

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Red: Below target

”Traffic light”

Yellow: Above last year, but below target

Green: Above target

Equipment status

• Visualize the status of the operation

Digital, real time process status visualisation

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TEAM BOARD- ACTIVE USE OF SHOP FLOOR TARGETS -

Measure Analyse Plan/DoTeam KPI Board

Why ”red” figures?

Team

Team picture

Team name

Team logo

Team roles:- Leader:….

Target statusM Tu W Th F

Rejects

DE

N

100 200 50 70 150

Process problems (min)

DE

N

150 20 60 200 100

100 50 50 70 150

40 20 50 70 25

100 20 15

100 200 50 30 150

30 70

Actionlist

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CONTENT• Active use of the KPI’s – Policy Deployment

• Loss analysis

• OEE in detail

• KPI and loss driven improvement process

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Suni Vatnhamar 2016 12

• Machines and equipment do represent the main elements bringing margins to the unit• Machines and equipment do also represent a significant part of needed investments / use of cash• Investments in machines and equipment will be an ongoing process to:

- Secure needed capacity to cover customer orders- Secure required capability to meet customer requirements- Secure needed performance to secure completeness in the

market

Therefore: Implement a best possible process to secure utilization of cash represented in machinery and equipment by:

- Reducing stoppage time,- loss not creating margins- Reducing production of non conforming articles,- not creating

margins, only waste - Continuous improvement of performance by reducing cycle, to

reduce need of machine hours to cover customer orders- Continuous improvement of performance by reducing cycle,

to improve machine hour contribution: GP / hour

Why high focus on production performance measurement?

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OEE – What does it tell me? OEE = Overall Equipment Effectiveness OEE is giving machine output compared to maximum

possible output in the same time periode

Number of approved products produced x Min theoretical cycle timeOEE = ----------------------------------------------------------------------------------------------------

Utilised machine time

Lost production

Machine output

TimeActual output

Maximum possible output

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A Utilized timeNo order, trials/testing

B Net production time

Stoppage time: Breakdowns

no people, no material, planned maintenance, start/stop

C Possible theoretical production at optimal cycle Availability (OEEa): B/A

D Actual production

Performance Loss:

Performance (OEEp):D/C

E Actual production Quality (OEEq): F/E

F Approved production

Quality Loss: Rejects

OEE = B/A x D/C x F/E

set up and change over

Cycle loss, minor

stoppages, adjustments

Rework

OEE - detailTotal yearly time = 365 days x 24 h

Installed capacity = maximum available time within agreed shift solution Weekends, holidays

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Stoppage time categoriesCategory Description

Set up/change over From last article from machine representing ended order to first article from machine representing the new order approved for packing, including both tool change and color/material change. Waiting for resources included

Machine cause Stoppage time represented by machine failures (machine and integrated robot), waiting for resources included

Tool cause Stoppage time represented by tool failures, waiting for resources included

Equipment cause Stoppage time represented by additional equipment installed in machine cells, waiting for resources included

Process problems Stoppage time represented by process problems giving stoppage time due to non conforming production / high frequency of non conforming production. Waiting for resources included

Planned maintenance Stoppage time represented by planned maintenance activities. Planned maintenance outside the installed capacity (in weekends and holidays) and total overhaul of machine is not accounted for

No material Stoppage time represented by shortage of ingoing materials / packaging materials

No operator Stoppage time represented by shortage of operators. If there is no customer need,- machine status should be reported in category no order

Start up/shut down Stoppage time due to shut down for and start up of machine for weekend, holiday etc (start up after all other stoppage categories,- lost time categories, are included in “basic” stoppage time reported)

Other Other reasons for stoppage time,- not defined above

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A machine have a minimum possible cycle time for product A of 20 seconds. The following information is given for a production shift. Measure the OEE for the shift.

Product Start Stop Number good produced

A 07 15 1000

OEE – example 1

How many hours possible production is lost?

Solution:Maximum output for 8 hour production = 3 / min * 60 min * 8 hours = 1440 OEE = Number produced / maks output = 1000 / 1440 = 69%

8 h

Solution:Lost time = 8 hours x (100 % - 69 %) = 2,5 hours

5,5h

2,5h

OEE = 69 %

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A machine has for product A en minimum cycle time of 20 seconds and for product B a minimum cycle time of 30 seconds. The following information is given for a production shift. Measure the OEE for the shift.

Product Start Stop Number produced

A 07 12 600

B 12 15 180

OEE – example 2

Solution:Maximum output of product A = 3 / min x 60 min x 5 hours = 900OEE product A = 600 / 900 = 67 %Maximum output of product B = 2 / min x 60 min x 3 hours = 360OEE product B = 180 / 360 = 50 %

OEE total 8 hours = 67 % x 5/8 + 50 % x 3/8 = 60,6 %

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OEE availability (OEEa) = Utilised time – Stoppage time Utilised time

Stoppage time categories (see next page for further definitions)• Machine cause, equipment cause, tool cause, process problems

(breakdown)• Set up/change over• Planned maintenance• No material• No personnel• Start up/shut down

NB: Planned maintenance outside installed capacity time is not accounted for (overhaul etc)

NB2: Trials and testing is not affecting OEE availabilityNB3: All waiting time is included in the given stoppage time categories

(waiting for resources, waiting to start up after breakdown etc)

OEE Availability

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OEE performance = Actual production in net production timePossible theoretical production at optimal cycle

Possible theoretical output at optimal cycle

Single unit production= Standard setting cycle time in MRP for specific item/machine combination • Standard values in the MRP-system should be the same as expressed in the “process books”

(process data carriers) representing best possible performance at approved capability (Cpk)- Actual values should be controlled against standard values at every start up, and documented

NB: OEEp should never hit 100%! When OEEp for a specific item/machine combination is >100% for a certain time period, an adjustment of the standard setting cycle time in MRP should be made.

Performance Loss:• Cycle time loss = (standard cycle time/actual cycle time) x net production time• Minor stoppage (machine stops < 5 minutes and non recordable stoppages)• Adjustments (machine still running, but reduced output)

OEE Performance

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OEE quality = No. of approved products produced in net production time

Total no. of produced units

Quality Loss:• Rejected products during net production time time• Including rejected products during minor adjustments (within net production time)• Products rejected after production (reworked)

OEE Quality

OEEq (quality) is expressing lost time in net production due to production of non conforming articles

Note:- OEEq: Calculation should be based on rejected articles inside net production time- Internal reject rate: total rejected articles (start up included) -> defined as KPI, see coming slide- Internal reject rate should normally be reported on a level > (100 – OEEq)

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A machine is producing product A with a minimum possible cycle time of 30 seconds for a 2 cavity machine. The following information is reported for one days production:

Day - report• Utilised time = 24 hours• Total produced = 4250• Total rejected = 250• Actual cycle time = 32 seconds• 30 min stoppage for no material• 30 min stoppage for no operator• 1 hour stoppage for machine cause• 1,5 hour stoppage for tool cause• 30 min stoppage for start up of machine

Loss analysis – Example 3

Measure If time:• OEE availability (%) Total lost time and lost time for • OEE performance (%) availability, performance and• OEE quality (%) quality• OEE (%)

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Example 3 - SolutionSolution:Total stoppage time = 30 min + 30 min + 1 hour + 1,5 hour + 30 min = 4 hoursOEE a = (Utilised time – Stoppage time)/Utilised time = (24 – 4)/24 = 83,3 %Net production time = 24 – 4 = 20 hours

Possible theoretical production per hour = 2 * 2 / min * 60 min = 240OEE p = Actual production in net production time/possible theoretical production at optimal cycle= 4250/(240x20) = 88,5 %

OEE q = No of approved products produced in net production time / total no of produced units= 4000/4250 = 94,1 %

OEE = 83,3% x 88,5% x 94,1% = 69,4 %

Lost time:Total lossed time = 24 * (100 – 69,4) = 7,3 hoursAvailability = 4 hoursQuality = 250 units / 4 units per min = 62,5 minPerformance = 7,3 – 4 – 1,04 = 2,3 hours

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CONTENT• Active use of the KPI’s – Policy Deployment

• Loss analysis

• OEE in detail

• KPI and loss driven improvement process

Page 24: TPM  Loss Analysis

Suni Vatnhamar 2016 24

Why are the KPI’s red? To improve the KPI’s we need to know details about the causes of low

performance For production, the causes will be connected to the 4M’s

Man Machine

Methods Materials

AttitudeSkills

Relations

Detoriation

MaintenanceDesign

Standards

Strategy Resources

ProjectsStorage

Quality

Specification

Transportation

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Machine performance related losses

Availability loss• Machine cause• Tool cause• Equipment cause• Process problems• Change over/Set up• Start up/shut down• No operator• No material• Planned maintenance• Other (cleaning)

Performance loss• Cycle time loss • Minor stoppage and adjustments

Quality loss• Rejects

Red

uces

OE

E

• Spoilage• Giveaway (overweight)• Maintenance/spare parts• Consumables• Energy

Potential cost

Real Cost

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OEEa and loss categories

Suni Vatnhamar 2016 26

Page 27: TPM  Loss Analysis

OEEp and loss categories

Performance Loss categories:• Cycle time loss = (standard cycle time/actual cycle

time) x net production time• Minor stoppage (machine stops < 5 minutes and

non recordable stoppages)• Adjustments (machine still running, but reduced

output)

Suni Vatnhamar 2016 27

Page 28: TPM  Loss Analysis

OEEq and reject loss categories

Internal rejects = Rejects during net production + rejects during start up after set – up/change over

Note: Rejected parts repaired is also included into the reject rate

Set – up/change over

Net production time

Quality defects = 100% - OEEq

Quality defects = Internal rejects

Start up after c/o

Products approved for packing

Suni Vatnhamar 2016 28

Page 29: TPM  Loss Analysis

Suni Vatnhamar 2016 29

A machine is producing product A with a minimum possible cycle time of 30 seconds for a 2 cavity machine. The following information is reported for one days production:

Day - report• Utilised time = 24 hours• Total produced = 4250• Total rejected = 250• Actual cycle time = 32 seconds• 30 min stoppage for no material• 30 min stoppage for no operator• 1 hour stoppage for machine cause• 1,5 hour stoppage for tool cause• 30 min stoppage for start up of machine

Loss analysis – Example 3 cont.

Measure• All losses in % available time

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Example 3 – Loss AnalysisSolution

Availability loss % of available timeMachine cause 4,2 %

Tool cause 6,3 %

No material 2,1 %

No operator 2,1 %

Start up 2,1 %

Quality loss 4,3 % (1,04 h)

Cycle time loss 5,2% (60/32 = 1,7 units/min -> Loss of 2x(2-1,7) = 0,25 units lost per min. Total units lost = 0,25x60minx20h = 300 units lost = 75 min = 5,2 %)

Minor stoppage & Adjustments 4,3 % (4800 – 4250 = 550 units lost to performance -> 550 – 300 = 250 units lost to minor stoppage and adjustements)

SUM 30,6%

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Pareto analysis

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AGENDA• Active use of the KPI’s – Policy Deployment

• Loss analysis

• OEE in detail

• KPI and loss driven improvement process

Page 33: TPM  Loss Analysis

33Suni Vatnhamar 2016

Corporate Strategy: Losses approach

OEE

Inte

rnal

R

ejec

tsKPI’s

Plan Do

CheckAct

5S, SMED, VSM, TWI, etc. Lean Management Layout changes Effective maintenance program Focused Improvement projects …..

- Management Audits- Visualisation

- Standards

SOP

….

Maint. schedule• Line Management daily follow up

Corporate Vision and Strategy

JAN FEB MAR APR MAY J UN JUL AUG SEP OCT NOV DECTarget 51.6 51.6 51.6 51.6 53.2 55.1 56.6 58.6 59.7 60.8 61.8 62.8Actual 52.3 51.58 52.41 53.66Target 51.6 51.6 51.6 51.6 53.2 55.1 56.6 58.6 59.7 60.8 61.8 62.8Actual 52.1 52.1 52.1 52.1 Target 14.6 16 16.9 16.5 17 17.3 17 17.2 17.4 17.2 17.4 18Actual 16.2 16.8 16 15.6Target 25.6 25.4 25.1 24.9 24.7 24.5 24.2 24 23.8 23.6 23.3 23.1Actual 26.4 25.3 26.8 23.7Target 98.5 98.5 98.5 98.5 98.5 98.5 98.5 98.5 98.5 98.5 98.5 98.5Actual 97.65 90.6 95.4 87.7

SHE Measures

OTIF

OPE Plant (13 week average)

Cost vs Budget

FACTORY KPI SCORECARD

Key Performance Indicators

OEE Plant (13 week average)

MONTHS

OEE%

0

10

20

30

40

50

60

70

1 4 7 10 13Week No

OPE%

0

0.5

1

1.5

2

2.5

1 4 7 10 13Week No

Cost v Budget

02468

101214161820

1 4 7 10 13Week No

SHE

0

5

10

15

20

25

30

1 3 5 7 9 11 13 15Week No

OTIF

0

20

40

60

80

100

120

1 4 7 10 13Week No

KPI’s Losses

Site Year Plan

Local site Vision and Strategy

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DECTarget 51.6 51.6 51.6 51.6 53.2 55.1 56.6 58.6 59.7 60.8 61.8 62.8Actual 52.3 51.58 52.41 53.66Target 51.6 51.6 51.6 51.6 53.2 55.1 56.6 58.6 59.7 60.8 61.8 62.8Actual 52.1 52.1 52.1 52.1 Target 14.6 16 16.9 16.5 17 17.3 17 17.2 17.4 17.2 17.4 18Actual 16.2 16.8 16 15.6Target 25.6 25.4 25.1 24.9 24.7 24.5 24.2 24 23.8 23.6 23.3 23.1Actual 26.4 25.3 26.8 23.7Target 98.5 98.5 98.5 98.5 98.5 98.5 98.5 98.5 98.5 98.5 98.5 98.5Actual 97.65 90.6 95.4 87.7

SHE Measures

OTIF

OPE Plant (13 week average)

Cost vs Budget

FACTORY KPI SCORECARD

Key Performance Indicators

OEE Plant (13 week average)

MONTHS

OEE%

0

10

20

30

40

50

60

70

1 4 7 10 13Week No

OPE%

0

0.5

1

1.5

2

2.5

1 4 7 10 13Week No

Cost v Budget

02468

101214161820

1 4 7 10 13Week No

SHE

0

5

10

15

20

25

30

1 3 5 7 9 11 13 15Week No

OTIF

0

20

40

60

80

100

120

1 4 7 10 13Week No

KPI’s

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Suni Vatnhamar 2016 34

KPI and Loss driven process

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DECTarget 51.6 51.6 51.6 51.6 53.2 55.1 56.6 58.6 59.7 60.8 61.8 62.8Actual 52.3 51.58 52.41 53.66Target 51.6 51.6 51.6 51.6 53.2 55.1 56.6 58.6 59.7 60.8 61.8 62.8Actual 52.1 52.1 52.1 52.1 Target 14.6 16 16.9 16.5 17 17.3 17 17.2 17.4 17.2 17.4 18Actual 16.2 16.8 16 15.6Target 25.6 25.4 25.1 24.9 24.7 24.5 24.2 24 23.8 23.6 23.3 23.1Actual 26.4 25.3 26.8 23.7Target 98.5 98.5 98.5 98.5 98.5 98.5 98.5 98.5 98.5 98.5 98.5 98.5Actual 97.65 90.6 95.4 87.7

SHE Measures

OTIF

OPE Plant (13 week average)

Cost vs Budget

FACTORY KPI SCORECARD

Key Performance Indicators

OEE Plant (13 week average)

MONTHS

OEE%

0

10

20

30

40

50

60

70

1 4 7 10 13Week No

OPE%

0

0.5

1

1.5

2

2.5

1 4 7 10 13Week No

Cost v Budget

02468

101214161820

1 4 7 10 13Week No

SHE

0

5

10

15

20

25

30

1 3 5 7 9 11 13 15Week No

OTIF

0

20

40

60

80

100

120

1 4 7 10 13Week No

KPI’s Losses

Site Year Plan

Focus on “red” KPI’s

Prioritisation

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Prioritisation matrix

1.priority 2.priority

3.priority 4.priority

Difficulty (resource need and complexity)

HighLittle

Littl

eH

igh

Expe

cted

effe

ct

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Loss driven KPI deployment

OEEIncrease of 7%

BreakdownsDown 3 OEE%

Change overDown 2 OEE%

No materialDown 2 OEE%

Maintenance Tool setters Logistics

Use the losses to set KPI’s at all levels in the organisation, including support functions

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PBS tools from Loss analysis

Loss

Effective maint.

Autonomous maint

Focused Impr.

When you know the losses and understand the problems behind, you can use good leadership and the right tools to remove the losses

Which tool to use is dependent on the actual loss

Waste

5S

SMEDPull

Zero defects

One Piece Flow

Standardised work

Standardisation

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Suni Vatnhamar 2016 38

THANKS !


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