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What is OEE? How to Increase Efficiency with OEE? What Should You Do for OEE Management?


performance with oee

OEE Management is a necessity for manufacturing businesses to meet their profitability, cash flow and sustainability targets! If you still cannot make progress in this regard, you should start treatment immediately!


I wanted to compile this article from our previous posts ( www.kobitek.com ) as a single piece for you. Here comes the flood of information;


Tell Me Your OEE Score and I'll Tell You What All Your Managers Are!


Our title seems a bit harsh, right?


Yes, but I think you should focus on the impact of a very important indicator called OEE, not on the harshness of this statement.


What exactly is this OEE? And why do manufacturing companies, especially SMEs, need to pay attention?

Let's take it together.


OEE stands for Overall Equipment Effectiveness.


OEE is a measurement used to evaluate the performance of a manufacturing facility or equipment.


Now the rules of the game are changing here!


As an SME that falls within this scope and carries out production, do you evaluate the performance of the production facility or equipment?


The answer to this question is NO for many businesses ! unfortunately in this case.


In this case, you are experiencing serious inefficiency and loss , but you are not aware of it.


Wait a minute!

We have a competitiveness problem!

How come we don't measure it?

How come we don't follow this indicator?


You need to ask these questions to your production manager and senior managers now !


The answers you get when you ask will actually show the situation of your institution.


While you are asking these questions, let me share with the readers a few competitive points about this OEE indicator.


OEE ,

· productivity, performance

· availability

Quality consists of three basic components:



oee calculation

Our title seems a bit harsh, right?


Yes, but I think you should focus on the impact of a very important indicator called OEE, not on the harshness of this statement.


What exactly is this OEE? And why do manufacturing companies, especially SMEs, need to pay attention?

Let's take it together.


OEE stands for Overall Equipment Effectiveness.


OEE is a measurement used to evaluate the performance of a manufacturing facility or equipment.


Now the rules of the game are changing here!


As an SME that falls within this scope and carries out production, do you evaluate the performance of the production facility or equipment?


The answer to this question is NO for many businesses ! unfortunately in this case.


In this case, you are experiencing serious inefficiency and loss , but you are not aware of it.


Wait a minute!

We have a competitiveness problem!

How come we don't measure it?

How come we don't follow this indicator?


You need to ask these questions to your production manager and senior managers now !


The answers you get when you ask will actually show the situation of your institution.


While you are asking these questions, let me share with the readers a few competitive points about this OEE indicator.


OEE ,

· productivity, performance

· availability

Quality consists of three basic components:


Productivity (Performance):

It is the ratio of production speed to planned speed.

It shows how long the equipment produces and how efficient it is during this time.


Now let's take this productivity and performance indicator.


However, let's take it a little more formulaically and discuss all parts of the organization it touches.


The formula for the Productivity (Performance) component is as follows:


Productivity (%) = ( Actual Production / Planned Production ) * 100


Let's cover all the formula elements here.


Actual Production represents the amount of product the equipment actually produces.

Planned Production represents the ideal or planned production quantity of the equipment.


This formula shows how long the equipment produces and how efficient it is during that time.


A high productivity rate indicates that the equipment is operating efficiently, while a low rate indicates areas that require improvement in efficiency.


This is where the team spirit and competence of all managers and members of your business are revealed. However, when revealing this, it is possible to evaluate competence and management based entirely on data, not opinions.


• What is this planned production?

• Whose success or failure affects the organization?


Yes, you are right ! I heard you...

There are many factors that affect the planned production value as parameters. However, let's consider it in the most general way.


These parameters may vary depending on the characteristics of the production facility, the characteristics of the product and the production process.


In general, some main parameters affecting planned production are:


Customer Requests and Orders: Customer demands and orders directly affect the planned production quantity. Production quantity and product variety are determined according to customer demands.

It is precisely for these values that proper sales and project management comes into play.


Then we need to talk about the harmony of production, sales and project departments.


So, when talking about production performance in the field, it would not be appropriate to consider only one department when evaluating the results.


The competence of unit managers and team members directly affects this parameter.


Production Capacity: The capacity of the production facility plays a critical role in determining the planned production amount. Capacity is related to the current status of production equipment and workforce.


This capacity is determined by the efficient use of the facility's equipment, workforce and other resources.


The ways in which production capacity affects the formula are as follows:


  • Efficiency and Performance Increase: Increasing efficiency and performance is important to increase production capacity. More efficient operation of equipment, more effective use of workforce and optimization of processes can increase production capacity.

Well, who will do all this efficiency work?

With new graduates who you fill into businesses and want them to be close to the minimum wage? Or will you carry out all these efficiency efforts with managers occupying unqualified positions, with wages below their value?


It has become a necessity for all your managers to focus on efficiency and performance work towards increasing production capacities. In this context, a correct organization and management process should be implemented with human resources. In this case, we encounter insufficient competence of the HR unit. Therefore, HR units should be informed or supported with consultancy for OPEX (operational excellence).


Thus, training activities to increase production capacity, increasing competencies in kaizen, standardization, SME, problem solving techniques and TPM should be constantly supported.


We measure the management's success in this field with the OEE indicator. For continuous development activities, it is essential that managers have a vision and leadership spirit. With this spirit, they will put these studies into action and write success stories.


  • Equipment Investments: Additional equipment investments can be made to increase production capacity. Using larger, more efficient machines or updating existing equipment can increase production capacity.


In this context, the easiest thing is to increase the capacity by paying the money and purchasing a new machine or equipment. However, this is a method that we definitely do not recommend. Because we do not recommend equipment investments unless necessary, with Smed and VSM studies obtained through the correct human competence, correct TPM management and correct placement of existing machines.


Okay, but our manager neither did smed nor knows vsm! I hear you say.

But how did your human resources and upper management make someone who had no idea or experience about this information a manager?



  • Workforce Competencies and Training: Increasing the competencies and training of the workforce can increase production capacity. Better trained personnel can contribute to more efficient execution of business processes and increased production capacity.


They are hiring breathing space!


Your human resources department excels and disgraces in all its activities. Therefore, if we want him to become the vizier, he must choose the right candidate in accordance with the process management.

For example, how to choose a machine operator to be hired in the casting process and how to test it is one of the priority recruitment track studies of human resources. That's why HR units organize candidate selection and employee development programs regularly throughout the year with other process managers and teams.

These workshops should ensure that a machine operator's core competencies and behavioral models are compatible with the company's goals and strategies.

Does your human resources manager know how to act as a pilot in this context?




  • Technological Advances: Technological advances and innovations can be used to increase production capacity. The use of automation systems and digital technologies can help make production processes more efficient and increase capacity.


You cannot achieve competitiveness only with ERP software or with software that only monitors material flow.

In particular, you should ensure industry 3.0 automation transformation and quickly integrate industry 4.0 efforts into your medium and long-term goals. In this context, you should support R&D - innovation studies and congress and seminar activities.


Well, sir, our company appreciates even one fair!

Get well soon then... you're out of the game


You should use MES software in your processes and demonstrate effective data management through this software.


MES is a software system used to monitor, control and manage production processes. MES is the abbreviation of the English term "Manufacturing Execution System". This system supports functions such as real-time data collection, production planning and scheduling, work order management, quality control, equipment monitoring, productivity analysis in production facilities.


Is there anyone in your management who uses these systems and performs performance management with these systems?



  • Process Optimization and Management: Optimizing and effectively managing production processes can increase production capacity. Efficient workflows, fast changeover times and minimal waste can help increase production capacity.


Do the quality manager and continuous development manager in your business have knowledge and sufficient experience about the lean production techniques referred to in the ISO quality management systems?


There is a tendency to say yes first. However, we answer this question by looking at the field, the poor quality rates in the data and the level of scrap.

In other words, we reveal the success and competence of our managers and teams in process management based on data, not opinions.


We train teams and provide consultancy support to the management for this process optimization and management, which is so important.

How can we not give?

The cost of these activities is insignificant compared to the amount of losses.


  • Stock and Material Management : Stock and material management is a critical factor affecting production capacity. Regular and timely supply of materials can ensure the uninterrupted production process and increase capacity.


We will start the machine, but we are waiting for the internal logistics operator to bring raw materials. On break now!

Would you look at the effectiveness of planning and the impact of creating supplier-customer contracts between internal units on productivity?

Who do you think will optimize all of this and why are lean management tools being put into use to keep teams working in harmony with each other autonomously?

All of them are aimed at increasing the OEE score and maintaining high competitiveness by achieving serious performance.


But we can neither see stock nor manage materials!

If you say so, go back and look at the manager of the process...


The issue is not just the stock level of the materials in the warehouse! It is the joint management of all these activities with production, sales and purchasing units.


We can talk about many more elements! But let's keep it limited to this.

We only talked about the performance multiplier!

Many people examine the actual cycle time compared to the planned cycle time!

It is not wrong, but what is important is the strategy to improve this performance!


OEE ,

  • productivity,performance

  • availability

  • quality

We have stated that it consists of three basic components:


OEE = Performance x Availability x Quality


If you are producing and not managing these multipliers! get well soon ...

I think he's still dreaming big and popular #artificialintelligence #sustainability You are busy with #end .4.0 expressions.


Whether it is #automotive , #textile , #defense , #food ... if you are making a production and you are far from OEE, you should urgently manage this system if it is not the common language of your business.


It is essential for competitiveness, performance, profitability and sustainability.


Is your manager aware of this? Then claim the results of the score improvement plan!

Are you making enough use of your machines?

Are you using your capacity correctly?

For development, are you first resorting to purchasing costly machinery or adding operators?


Then start doing AVAILABILITY Management...


A high OEE Score delivers high PERFORMANCE.


What is this Usability?


It shows how long a production equipment is available for production in a given time period . Availability refers to how long the equipment is operational relative to the planned production time .



usability on the production line

Sir, we do not have a production planning unit!


However, you have machines worth millions of TL.

If you are planning to buy new machines and say that there is no or ineffective production planning in your growth strategies, you are truly rich.


As can be seen, it is trying to monitor how long a machine works according to the planned production time, and we will need a lot of additional work to make it work within the planned time. So who do you think is involved in doing this?


  • planning unit

  • Production unit

  • Project unit

  • sales unit

  • quality unit

  • maintenance unit

  • human resources unit


Don't make trouble for us, sir! What is the need for this OEE?

You seem to be saying... Think about it, many units will need to work together and in harmony to raise a score.


But who will ensure this harmony?


Director

General Manager of course...


Fine but they don't care! or if you say you don't have any information

We already understand the situation from OEE without waiting for you...


The following elements are generally taken into account when calculating availability:


  • Planned Downtime : This refers to the time the equipment is down for scheduled maintenance, adjustment, or other planned downtime. This duration is determined by production planning and scheduling.


Come on!!! Look, now maintenance planning has emerged!

What will daily maintenance be like now? How will autonomous or predictive maintenance be done? Will daily feasibility and maintenance plans be monitored?


We don't have a maintenance unit though! Who will plan?

What is the need for weekly, monthly, 3-month maintenance plans now... We call the service and get it done.

We have seen many bosses who said this and had the opportunity to get to know them.

Here, shipments are always delayed, production is always in emergency mode and there are always lies told to the customers. Overtime has taken its toll and manpower has been poorly managed.

On the one hand, overtime work and a constantly urgent production style have produced constant poor quality. This poor quality has led to endless 8D's, error notifications, that is, customer complaints.


Don't your managers come together and plan?



  • Unplanned Downtime : Unplanned downtimes are downtimes caused by unexpected malfunctions, lack of materials or other reasons. These periods prevent the regular flow of production processes.


It is one of the issues that is constantly complained about.

Just as we see the excuse of "We can't find bosses and staff" in his faulty management.

We see unplanned and unexpected malfunctions in machines under the excuse of "old machine".

,

However, all excuses make us worthless, but we don't realize it.

We do a root cause analysis and get to the root, and again we come across either the boss or the general manager.


What is OEE? Since their importance is not known, they understand neither human management nor technical machine management. Therefore, they constantly make excuses.


You are very lucky if your manager manages OEE.

They work on both the maintenance unit, critical material stock, technological investments and competence management.

In fact, their success in this field ranks companies in competitiveness.


Availability is calculated by the following formula:



availability account at oee

A high availability rate indicates that the equipment is operating effectively during the planned time and there is minimal interruption to production.

A low availability rate indicates that the equipment is experiencing constant downtime and productivity is decreasing.

Therefore, increasing the availability rate is an important goal to increase efficiency in production facilities .


Well, but we do not have such a goal!


OK, but how will you be competitive?


That's why we do #leantransformation and establish #systems in businesses .


PRODUCTION SYSTEM


You will either do this with the competencies of your own managers or you will receive support.


To increase efficiency in production facilities

  • We establish a job placement system to recruit the right people

  • We identify the right competencies and build a behavior management culture

  • We are building 5S visual management tools and discipline to make the production line easier to observe, easier to teach and manage, and easier to develop.

  • We are developing faster and safer equipment management skills and establishing dojos in this direction.

  • We establish equipment replacements, maintenance intervention systems with correct standardization, and establish the TPM "Total Productive Maintenance" system to manage all these activities.

  • TPM is a maintenance management approach used to ensure that production equipment operates at maximum efficiency. The main purpose of TPM is to reduce malfunctions of production equipment, optimize maintenance times and thereby increase productivity. To achieve these goals, we base TPM on the following main principles: TPM targets not only the maintenance of equipment, but also the improvement of operational processes and the development of facility culture. In this way, we provide increased efficiency, cost reduction and quality improvement in production facilities.

  1. Preventive Maintenance : Regular maintenance and preservation of equipment is carried out. This helps prevent malfunctions and keep the equipment running uninterrupted for longer.

  2. Staff Participation and Training : Facility staff are trained in equipment maintenance and management and are actively involved in the process. This ensures that standards and procedures of care are followed.

  3. Small Group Activities (SMED, 5S, etc.) : Small groups carry out development studies to increase the efficiency of equipment. These include techniques such as rapid changeover (SMED) and streamlining (5S).

  4. Quality and Efficiency Improvement : Quality and efficiency are constantly monitored and we make improvements. This helps optimize processes and reduce waste.

  5. Planned Maintenance : We integrate maintenance work into production plans and carry out it in a planned manner. This ensures that production processes continue uninterrupted and orderly.


  • We constantly monitor occupational safety and ergonomics so that we ensure continuity by valuing employees. We support efficiency with ergonomics. We carry out analyzes and action plans in this direction.

  • We measure time frequently in all activities in the field. We analyze machine times in both human movements and MES Systems and aim for continuous improvement. We establish a system in the business in this direction.

  • If we see deviations or setbacks, we use problem-solving techniques. In this direction, we frequently use A3 and especially design thinking and problem solving techniques.

  • We regularly keep all activities alive, question, measure and manage them in daily ASAKAI studies. By putting this system into action, we monitor it in the annual goals and strategic planning of the business.


Do you really not do these?

Well, but it is 2024 and you are not doing these effectively! It means you are stubborn...

Drop your stubbornness and take action...


We write, we share, we produce so that you can take action... Because we don't want you to lose any more.

We support you so you don't lose.


Just as you know how to do what is necessary for the latest model BMW you have pulled up to your door, you will know that you have to give the necessary value, time and money for the quality performance of your business!


Is Quality a Value That Is Just on Your Tongue and Not in Your Soul? Or is it the most basic indicator of your customer focus? How Will We Distinguish?


Of course, we will distinguish it from your indicators.

We understand from your soul what you produce and what kind of #quality value you have.

Your soul may be invisible, but we make the reflection of your soul visible from everywhere.


The #discards you make give you away.

What about the #8D forms you constantly prepare after customer #complaints ...

#quality you put extra What about #control studies?

What about the #overtime you pay due to poor quality ?

These are all indicators of your soul...


And #ppm is added to these, right?

Number of errors per million...

At work

What is your soul is the product and service you provide!

You make process observations every day, #FMEA analyses, #MSA kits and #internal audits...

Continuous training, constantly prepared customer audits...

It just doesn't get better!


What is not getting better, Dear Boss/Leader?


Not your quality level?

You're still dealing with supplier problems and still internal quality problems...


Come on dude ...

Don't be so hard on the Quality Manager to whom you paid 40 000 TL...

Which one should you deal with...


Come and rest your soul a little.

But rest with a #methodology .

Look, I'll give you a tip. This tip is not something you would do with such soulless people!


knowledge in management

A person who does not have a soul that you can understand does not have a brain to strive for your values. However, his outfit is stylish and flashy.

Now let's get to the trailer...


  • Erroneous Acceptance

  • Faulty Production

  • Incorrect Sending


Go back and look at all your processes now! Do leaders and employees have soul?

Do your suppliers have the spirit to take care of your goals?

... (More goes into consultancy :) )


If you have passed these stages!


Now you can move on to the Error generation section...

How will you pass...

Do you have previous experience in the entire supply chain?

If yes , it can't be your quality problem ! Because you are already doing quality management in the continuous improvement process.

If no, you have a lot to do to improve your indicators.

You cannot do this by just taking 5S training and painting a few areas in the process... You should never leave the field.

Anyway, from now on, the consultancy process is already...


Let's talk about #quality management at the machine....

Do you manage the quality of the products coming out of your machine correctly?

We will now bring together the quality department and the production department and strengthen these units with the support of the purchasing and maintenance units.

We will combine each of them into the common indicator OEE...

Let's remember what OEE was then;




oee calculation


You can access our previous articles on our blog and www.kobitek.com .


Now let's talk a little about quality.

What is this quality issue in OEE?



oee quality account

The formula is very clear and concise! But at the same time, isn't it prone to cheating?


If you want, you can deceive your boss, manager or customer by showing the quality value as 100 in OEE.


They often do this in multi-cavity moulds.

For example, 2 of the 8-cavity mold are faulty and are closed. However, instead of 2-cavity rejection, they show the mold as 6-cavity and make it seem as if they are producing efficiently and without waste...

It is nothing but self-deception.

Don't ask if it can be done, sir.... They even adjust the software accordingly :)


So how will we monitor this rejection and retouching rate? If you say...

With process management...

Your quality manager and system administrator have to establish this structure.

In our #digital transformation projects, we already include them in the system with 100% accuracy and follow the rejections and retouches until the product is delivered to the customer.


Whether it is the ones that are rejected at the machine or the ones that we call healthy at the machine but are retouched during assembly or subsequent processes!

It is the number one indicator of our #asakai meetings every day . OEE


We design all our activities and trainings according to the increase in the quality indicator of the business. For this value, we prepare the settlement according to 5S rules, make it sustainable, and conduct dexterity development areas and #dojo studies depending on human variability.


We cannot be satisfied with these!

We standardize all operations and non-flow operations that affect the product . We define operation forms and perform time studies. We often look for variants and run #PDCA with the team leader ...

what else...


Two people who don't know the job think that they can get training, do a sample application and this will happen...

You get the air...

There is no easy #zeroerror process...

You will put in effort, gain knowledge, spend time and money...


How can you pay so much money for a BMW instead of a Megane to go between two points?

You will also give the necessary value for your quality level.


However, I don't want to go without saying this...

Stop putting pressure on our quality manager, who works day and night for a salary of 30-40 thousand TL.

Managing input quality, process quality, final quality and supplier quality systems is not a cheap job as you think...

At those prices you can only make documentation.


*This article was prepared for kobitek.com .


Now you continue calculating and managing OEE. If you're stuck on anything, I'm here.



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Ümmet AYYILDIZ

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