Join SafetyChain and Vern Campbell, president of Process Management Consulting, for this webinar on how to implement OEE to maximize performance and cost savings across your organization.

1. Beyond Compliance
Webinar & Podcast Series for Process Manufacturers
Leveraging OEE
to Minimize Downtime and
Maximize Performance
with Vern Campbell, Prof. Eng., MBA, Master Black Belt
President, Process Management Consulting

2. The Sponsor
✔Improve Yield
✔Maximize Productivity
✔Ensure Compliance
Plant Management Platform
BEYOND COMPLIANCE

3. Casual but Professional Format
✔Ask questions! (Q&A at end)
✔Only panelists are displayed
✔Recording link will be shared
✔Audio issues: use call-in number
Before We Get Started
BEYOND COMPLIANCE
Helpful tips

4. About the Presenter
BEYOND COMPLIANCE
Vern Campbell
Prof. Eng., MBA, Master Black Belt
President, Process Management Consulting
● 10 years at Manitoba Hydro, first in financial planning and
then leading their Strategic Planning and Quality
Improvement Initiative before assuming a General
Manager role at Northern Blower.
● Strategic planning and deployment, operational
improvement through Lean Six Sigma training and
coaching, data interpretation & analysis, and problem-
solving in healthcare, manufacturing, and packaging.
● Education: B. Sc. Mechanical Engineering, University of
Manitoba, MBA from University of Western Ontario, and
Lean Six Sigma Master Black Belt, University of Miami.

5. BEYOND COMPLIANCE
About Process Management by VFC
Partner with organizations to implement sustainable advanced
Enterprise Improvement Systems to continuously improve
SQCDME
• Operational Excellence transformation
• Organizational assessments & diagnostics
• Strategy planning/deployment (Hoshin Kanri)
• Process & Product Improvement & Innovation:
• Advanced Lean Six Sigma Training (Basic Root Cause to Master Black Belt)
• Design for Six Sigma (Green Belt & Black Belt)
• Daily Management System Development & Deployment
• Leadership development and coaching.

6. BEYOND COMPLIANCE
Objectives
To introduce OEE
● The benefits of leveraging OEE
● Thoughts on how to get started
● Potential challenges and Critical Success Factors to implementing OEE

7. BEYOND COMPLIANCE
Agenda
1. OEE background, purpose and definition
2. OEE, the Metric - Calculating OEE
3. 6 “Big Losses”
4. OEE, 6 Big Losses & Continuous Improvement
5. OEE fit with Daily Management/operating systems
6. Thoughts on how to get started
7. Typical challenges and critical success factors
8. Wrap-up

8. Poll Question
What best describes your typical OEE Score?

9. BEYOND COMPLIANCE
FUNDAMENTALS OF OEE
“Face reality and deal with it.” – Jack Welch OEE Purpose:
The purpose of the OEE metric
is to systematically identify
losses/waste and then
improve performance over
time following Plan-Do-
Check-Act (PDCA) cycle.

10. BEYOND COMPLIANCE
OEE
Background (Nakajima - 1988 & 1989):
• Closely related to Total Productive Maintenance (TPM)
• Maximize equipment effectiveness;
• Autonomous maintenance by operators;
• Small group activities
• Production losses combined with indirect and hidden costs make up a
significant proportion of total production costs.
• OEE is ‘A measure that attempts to reveal these hidden costs.”

11. BEYOND COMPLIANCE
OEE DEFINED
OEE (%) = Availability (%) x Performance (%) x Quality (%)
OEE (%) = Availability (.90) x Performance (.95) x Quality (.80) = 68%
Availability (%) = Actual Operating Time (mins)/Planned Operating Time
(mins) * 100
Performance (%) = Net Operating Rate * Operating Speed Rate * 100 or simply
Actual Output/Theoretical Output
Quality (%) = (Total no. produced – No. Scrapped/reworked)/ Total no.
produced * 100

12. BEYOND COMPLIANCE
AVAILABILITY (%):
Availability (%) = Actual Operating Time (mins)/Planned
Operating Time (mins) * 100
Actual Operating Time (mins) = Planned operating time –
unplanned maintenance (mins) – minor stoppages (mins) – Set-
up and changeover (mins)
Planned operating time (mins) = Total shift time (mins) –
Planned Maintenance (mins)

13. BEYOND COMPLIANCE
PERFORMANCE EFFICIENCY (%):
Performance Efficiency = Actual speed of equipment/Ideal speed
of equipment * 100
= (Net operating rate * Operating speed rate) * 100
Net Operating Rate = (Number produced * Actual Cycle
time)/Operation time
● (Calculation accounts for losses resulting from minor recorded stoppages as
well as unrecorded losses)
Operating speed rate = Theoretical cycle time/Actual cycle time

14. BEYOND COMPLIANCE
QUALITY RATE (%):
Quality Rate (%) = (Total Number produced – Number
Scrapped/Reworked)/Total Number produced * 100

15. BEYOND COMPLIANCE
6 ‘BIG’ LOSSES

16. BEYOND COMPLIANCE
LOSSES DEFINED
1. Equipment breakdown – Unplanned downtime on equipment.
2. Set-up/Adjustment time – time lost from end of last item to production of
the next item.
3. Idling/Minor stops – temporary machine problem or machine idling.
4. Reduced speed – difference between equipment design speed and actual
operating speed.
5. Reduced yield – early stages of production from machine start-up to
stabilization.
6. Defects and rework – output does not meet specifications (First pass yield).
“A bottom-up approach where an integrated workforce strives to achieve OEE by
eliminating the six big losses (Nakajima, 1988).

17. Poll Question
Where do suspect your most significant losses are coming from?

18. BEYOND COMPLIANCE
TYPICAL OEE BENCHMARKS

19. BEYOND COMPLIANCE
GETTING STARTED
● Senior management education and commitment
● Focus on purpose – Improve performance versus OEE score
● Start Small – Focus on a “pain point”
● Communicate & engage all employees
● Develop strong Daily Management systems
● Develop problem solving competency across all levels
● Pay attention to definitions & data collection systems
● “Progress, not perfection”…Start, learn and improve…

20. BEYOND COMPLIANCE
PROGRESSING

21. BEYOND COMPLIANCE
How to Improve OEE – Daily Systems to “See”
Sources - Kansai Electric
Dr. Noriaki Kano

22. BEYOND COMPLIANCE
VIEWING A PROCESS - Fundamental

23. BEYOND COMPLIANCE
DEVELOP COMPETENCY IN PROBLEM SOLVING
The Seven-step Methodology
Adapted From Dr.. H. Kume

24. BEYOND COMPLIANCE
SIMPLE, USEFUL TOOLS TO REDUCE LOSSES (7 QC Tools)
Pareto Diagram

25. BEYOND COMPLIANCE
CRITICAL SUCCESS FACTORS
• OEE – The purpose of the OEE metric is to systematically identify losses/waste and then
improve performance over time following Plan-Do-Check-Act (PDCA) cycle.
• Availability, Speed & Quality
• 6 Big Losses
• Get Started
• Start small but start!
• Focus on process, not people.
• Plan 🡪Do 🡪Check 🡪Act to higher levels.
• Manage the people side – Change Management
• Communicate – What, Why, How?
• Develop a “favourable work environment” (Nakajima 1988)
• Integrate with other systems.
• Fit with Daily Management & Strategic Management System.
• TPM & attitude of Continuous Improvement/Pursue Excellence
• Patience, Passion, Perseverance & Resilience.
D

26. BEYOND COMPLIANCE
• Senior management commit to OEE as a strategic KPI.
• OEE as a metric – define, trust, monitor.
• Focus on process & improvement not people.
• Define losses, collect data.
• Develop robust data definitions & collection systems.
• Data Integrity
• Develop and implement robust Daily Management systems.
• “See problems”
• Develop Fact/Data Based Problem solving competency
• All levels
• Start Small – Focus on “Pain Point”
• Pilots are a good idea – Quick wins plus learn and grow capability.
• Patience, passion, perseverance & resilience.
• “A commitment to improvement is not a casual thing!” – Bob Rotella, Sports Psychologist
How will you start tomorrow?
CONCLUSIONS & WRAP-UP

27. Q&A
BEYOND COMPLIANCE

28. BEYOND COMPLIANCE
Contact the Speaker
Vern Campbell
Prof. Eng., MBA, Master Black Belt
President, Process Management Consulting
(204) 793-9829
Vern.campbell@verncampbell.com

29. More Resources at www.safetychain.com
White Papers & Surveys
Webinars & Videos
Product & Partner Info
Solution Consultation
3/25/22: FSMA Fridays: RCAs and CAPAs
4/5/22: Measuring the Real Cost of Quality: Methods, Models & Tips
safetychain.com/resources/webinars-events/
BEYOND COMPLIANCE