How to improve and utilize machines and equipment

1. TPM
LOSS -
ANALYSIS
Suni Vatnhamar 2016
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2. Total Productive Maintenance
Loss analysis: a method to
improve machine utilization
2
A presentation arranged by Suni Vatnhamar 2016
(MBA – B.SC. Technical Engineering)

3. CONTENT
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• Active use of the KPI’s – Policy Deployment
• Loss analysis
• OEE in detail
• KPI and loss driven improvement process

4. CONTENT
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• Active use of the KPI’s – Policy Deployment
• Loss analysis
• OEE in detail
• KPI and loss driven improvement process

5. THE COCKPIT
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 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

6. OPERATIONAL SHOP FLOOR
TARGETS
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 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
DAY
WEEK
 KPI’s for me need to be
 Measureable
 Directly influenced by my
performance
 Directly linked to the site strategy
and KPI’s

7. KPI DEPLOYMENT
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Vision/
Strategy
Target
Target
TargetOperator/shop floor teams
Shift leader
Production manager
KPI
General Manager
(Plant manager)
• Maximum 3 KPI’s on shop floor level
• KPI’s per level based on “red” KPI’s and loss analysis

8. POLICY DEPLOYMENT
Action Plan
Action 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

9. 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

10. TEAM BOARD
- ACTIVE USE OF SHOP FLOOR TARGETS -
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Measure Analyse Plan/Do
Team KPI Board
Why ”red” figures?
Team
Team picture
Team name
Team logo
Team roles:
- Leader:….
Target status
M Tu W Th F
Rejects
D
E
N
100 200 50 70 150
Process
problems
(min)
D
E
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

11. CONTENT
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• Active use of the KPI’s – Policy Deployment
• Loss analysis
• OEE in detail
• KPI and loss driven improvement process

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• 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 time
OEE = ----------------------------------------------------------------------------------------------------
Utilised machine time
Lost production
Machine output
TimeActual output
Maximum
possible output

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A Utilized time
No 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 - detail
Total yearly time = 365 days x 24 h
Installed capacity = maximum available time within agreed shift solution Weekends, holidays

15. Stoppage time categories
Category 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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16. 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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17. 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 = 900
OEE product A = 600 / 900 = 67 %
Maximum output of product B = 2 / min x 60 min x 3 hours = 360
OEE product B = 180 / 360 = 50 %
OEE total 8 hours = 67 % x 5/8 + 50 % x 3/8 = 60,6 %
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18. 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 availability
NB3: All waiting time is included in the given stoppage time categories
(waiting for resources, waiting to start up after breakdown etc)
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OEE Availability

19. OEE performance = Actual production in net production time
Possible 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)
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OEE Performance

20. 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)
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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)

21. 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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22. Example 3 - Solution
Solution:
Total stoppage time = 30 min + 30 min + 1 hour + 1,5 hour + 30 min = 4 hours
OEE 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 = 240
OEE 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 hours
Availability = 4 hours
Quality = 250 units / 4 units per min = 62,5 min
Performance = 7,3 – 4 – 1,04 = 2,3 hours
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23. CONTENT
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• Active use of the KPI’s – Policy Deployment
• Loss analysis
• OEE in detail
• KPI and loss driven improvement process

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
Projects
Storage
Quality
Specification
Transportation
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25. 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
ReducesOEE • Spoilage
• Giveaway (overweight)
• Maintenance/spare parts
• Consumables
• Energy
Potential cost
Real Cost
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26. OEEa and loss categories
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0%
1%
1%
2%
2%
3%
3%
4%
4%
% of
utilise
d time
Electrical Pneumatics Hydraulic Control
Machine failure

27. 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)
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28. 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
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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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30. Example 3 – Loss Analysis
Solution
Availability loss % of available time
Machine 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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31. Pareto analysis
0
1
2
3
4
5
6
7
OEE loss
(% of utilised
time)
ToolcauseC
ycle
tim
e
Q
uality
M
inorstoppage
M
achine
cause
N
o
m
aterial
N
o
operatorStartup
Pareto analysis of Example 3
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32. AGENDA
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• Active use of the KPI’s – Policy Deployment
• Loss analysis
• OEE in detail
• KPI and loss driven improvement process

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Corporate Strategy: Losses
approach
OEE
Internal
Rejects
KPI’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 JUN JUL AUG SEP OCT NOV DEC
Target 51.6 51.6 51.6 51.6 53.2 55.1 56.6 58.6 59.7 60.8 61.8 62.8
Actual 52.3 51.58 52.41 53.66
Target 51.6 51.6 51.6 51.6 53.2 55.1 56.6 58.6 59.7 60.8 61.8 62.8
Actual 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 18
Actual 16.2 16.8 16 15.6
Target 25.6 25.4 25.1 24.9 24.7 24.5 24.2 24 23.8 23.6 23.3 23.1
Actual 26.4 25.3 26.8 23.7
Target 98.5 98.5 98.5 98.5 98.5 98.5 98.5 98.5 98.5 98.5 98.5 98.5
Actual 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 13
Week No
OPE%
0
0.5
1
1.5
2
2.5
1 4 7 10 13
Week No
Cost v Budget
0
2
4
6
8
10
12
14
16
18
20
1 4 7 10 13
Week No
SHE
0
5
10
15
20
25
30
1 3 5 7 9 11 13 15
Week No
OTIF
0
20
40
60
80
100
120
1 4 7 10 13
Week No
KPI’s Losses
Site Year Plan
Local site Vision and
Strategy
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
Target 51.6 51.6 51.6 51.6 53.2 55.1 56.6 58.6 59.7 60.8 61.8 62.8
Actual 52.3 51.58 52.41 53.66
Target 51.6 51.6 51.6 51.6 53.2 55.1 56.6 58.6 59.7 60.8 61.8 62.8
Actual 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 18
Actual 16.2 16.8 16 15.6
Target 25.6 25.4 25.1 24.9 24.7 24.5 24.2 24 23.8 23.6 23.3 23.1
Actual 26.4 25.3 26.8 23.7
Target 98.5 98.5 98.5 98.5 98.5 98.5 98.5 98.5 98.5 98.5 98.5 98.5
Actual 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 13
Week No
OPE%
0
0.5
1
1.5
2
2.5
1 4 7 10 13
Week No
Cost v Budget
0
2
4
6
8
10
12
14
16
18
20
1 4 7 10 13
Week No
SHE
0
5
10
15
20
25
30
1 3 5 7 9 11 13 15
Week No
OTIF
0
20
40
60
80
100
120
1 4 7 10 13
Week No
KPI’s

34. 0
1
2
3
4
5
6
7
OEE loss
(% of utilised
time)
ToolcauseC
ycle
tim
e
Q
uality
M
inorstoppage
M
achine
causeN
o
m
aterial
N
o
operator
Startup
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KPI and Loss driven process
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
Target 51.6 51.6 51.6 51.6 53.2 55.1 56.6 58.6 59.7 60.8 61.8 62.8
Actual 52.3 51.58 52.41 53.66
Target 51.6 51.6 51.6 51.6 53.2 55.1 56.6 58.6 59.7 60.8 61.8 62.8
Actual 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 18
Actual 16.2 16.8 16 15.6
Target 25.6 25.4 25.1 24.9 24.7 24.5 24.2 24 23.8 23.6 23.3 23.1
Actual 26.4 25.3 26.8 23.7
Target 98.5 98.5 98.5 98.5 98.5 98.5 98.5 98.5 98.5 98.5 98.5 98.5
Actual 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 13
Week No
OPE%
0
0.5
1
1.5
2
2.5
1 4 7 10 13
Week No
Cost v Budget
0
2
4
6
8
10
12
14
16
18
20
1 4 7 10 13
Week No
SHE
0
5
10
15
20
25
30
1 3 5 7 9 11 13 15
Week No
OTIF
0
20
40
60
80
100
120
1 4 7 10 13
Week 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
LittleHigh
Expectedeffect

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Loss driven KPI deployment
OEE
Increase of 7%
Breakdowns
Down 3 OEE%
Change over
Down 2 OEE%
No material
Down 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
SMED
Pull
Zero defects
One Piece Flow
Standardised work
Standardisation

38. THANKS !
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