Saturday 28 April 2012

The efficiency equation

 ~ Why OEE is typically the second step on the road to efficiency for bottling and packaging plants ~

It is generally acknowledged that the first step towards plant efficiency is to do the practical things, typically instigated by lean six sigma consultants. OEE (Overall Equipment Effectiveness) is most effective when it is used to support, reinforce and further improve on this first step. However, there is sometimes a lack of understanding about its operation, objectives and outcomes, both generically and in an application specific context. Here, Phil Gillard, general manager of SolutionsPT, analyses the potential for the technique to be applied in bottling and filling plants. 

Avalability x Performance x Quality = OEE. This equation facilitates efficient plant operation.

OEE is much more than an equation. Used correctly it is a mechanism to focus a collaborative approach to efficient plant operation.  It’s important to clearly understand the formula that underpins OEE and how it can be expressed as a management measure.

The equation is simple; A (Availability) x P (Performance) x Q (Quality) = OEE. Availability is measured as actual production time divided by planned production time, performance as actual output divided by theoretical potential output and quality as good units produced divided by the total amount of units. 

At SolutionsPT a typical objective for a bottling and filling industry OEE project might be “To provide a paperless real-time OEE Solution to engage all levels of personnel in a program of continuous Improvement to deliver capacity, efficiency and cultural benefits”. For successful implementation the constituent parts of the OEE equation are owned by; maintenance (availability), operations (performance), quality (quality) and everybody (OEE).

Let’s presume that our filling line consists of a filler, capper, labeller, cartoner, check weigher and case packer with support technology, such as an industrial robot and a vision system. 

Within this overall purpose we might define a capacity objective as understanding where the bottling or filling line is today and establishing what further capacity it could provide. Equally, the objective might be to decide how different products affect the overall line output and efficiency. Irrespective of the specifics, it’s crucial that the objectives are owned by the complete team. Our role as consultants and software providers is to facilitate this decision making process.

In this context, an efficiency objective could be as simple as finding a way to measure performance from day to day or putting in place a method that allows easy access to information. Equally it could be more complex, such as providing real time information to identify bottlenecks or understanding the effect of micro stoppages. 

A cultural objective could be to spend less time on paperwork and more in the production area, or to support more effective capital budget planning. Used correctly OEE has the ability to unite all levels and rolls, in an organisation, in a continuous improvement programme.

In a bottling or filling line environment, these objectives could deliver benefits ranging from identifying labelling issues to identifying fillers that are running slowly due to production bottlenecks. Other common objectives would be to reduce the downtime resulting from changeover or monitoring the process parameters that affect quality.  

In order to achieve objectives like these, one has to understand the common challenges that an OEE project will encounter. They can range from the logistical, such as different PLC vendors, lack of PLC communications or lack of standard designs across the plant, to generating engagement in the process amongst operations staff.

At SolutionsPT we recently conducted a survey, to help us understand what makes OEE successful. We asked the survey’s respondents to list the four words that best describe a successful OEE project in order of importance. We then displayed these in a Pareto chart to highlight the most issues.

Asking for just four descriptive words forces the respondent to think very clearly about what they are going to say. George Bernard Shaw once apologised for the number of pages in an overly long letter, saying he didn’t have ‘time to write a shorter one’. Similarly, our survey demanded that its participants take the time to think clearly about how to express just a few concepts.

The single most important factor named in the survey was culture, followed by visibility, usability and simplicity. This clearly demonstrates that, while things like technology, functionality and efficiency are important, they aren’t the vital issues. Instead these are things like what OEE means to the company in question, how it is adopted and how it will be used.

This focus on culture represents a real step forward for our industry. As little as five years ago a survey like this one would have generated very different answers. The respondents would have used words like ‘real-time’ and ‘flexibility’. These are important concepts of course, but they are secondary issues when compared to culture.

As a result, when we deliver an OEE project, we first address how the users and stakeholders define their goals and success criteria. We also try to prove to ourselves that the foundations of the correct culture are in place already. For instance, we walk the shop floor to see if lean and process improvement notice boards are in place and we talk very honestly with the client team about their plans.

We believe in this profoundly. In fact, we won’t start work with a new customer if the correct culture isn’t already sufficiently strong that it can be nurtured to support Overall Equipment Effectiveness.

By understanding potential challenges one can prepare for and overcome them. At SolutionsPT, we use a process called DRIVE, which stands for Discover, ROI (Return in Investment), Implement, Value and Enable, to achieve this. The process also combats the inherent difficulty in sustaining improvements once made. It uses a series of consultative workshops focusing on the manufacturer’s goals and success criteria to establish objectives, outcomes and value.

Irrespective of what you call the process you use to take your OEE system from its early stages through to delivery, it’s vital that when the system is installed the results are owned and acted upon by the shop floor team. If you can achieve this, not only will you have taken your first step on the road to effective OEE, but you will have also laid the groundwork for future business process improvement and better workflow practices.

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