OEE Overall Equipment Effectiveness. an important KPI for Operational Intelligence. Presented by. Thomas J. Lang

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1 OEE Overall Equipment Effectiveness an important KPI for Operational Intelligence Presented by Thomas J. Lang

2 Agenda OEE and the usage within BCS Special application of OEE at Frankfurt site Benefit 2

3 The meaning of OEE OEE (Overall Equipment Effectiveness) is a best practice metric that identifies the percentage of planned production time that is truly productive. An OEE score of 100% represents perfect production: manufacturing only good parts, as fast as possible, with no down time. Therefore OEE can be also an important number/metric within an MES system, for global and local Management. 100% (Perfect) 90% (World Class) 80% (Typical) 60% (Low) 3

4 The classical OEE definition is mainly used by the global management with a focus on ROI Maximum Output = Equipment, personal, material, logistics available Max. performance of production line Required quality Overall Equipment Effectiveness (OEE) = Availability x Performance x Quality KPI for the return on invested capital Rate of losses generated by downtimes Produced quantity/ planned quantity Quality is the criteria for in spec product calendar year percentage of the real losses Downtimes missing personal disruption of plant no order Missing material Missing energy or other supplies, etc. Target quantity means the theoretical plant quantity (or the ever shown best quantity) and calculated as: Quality = Good Pieces / Total Pieces Changeover times 4

5 Capital intensve industries Importance of Return on Investment (ROI) The KPI OEE is explicitly important for capital intensive industries Business sector: Services Retail business Banks Automotive Machine building industry.. Chemical industry Leverage to increase ROI: Maximum usage (productivity) of invested capital KPI: OEE 5

6 Ist- Plan- Taktzeit technische Kapazität Taktzeit Leistungs - Qualitätfaktor x x = faktor Anlageneffizienz (AE) Within a 24/7 production - the global OEE definition can be used on a production site OEE- definition by BCS Global Production time 7 days 24 h Die technische Kapazität orientiert sich an den technischen Möglichkeiten der Anlage Definition technische Kapazität = Verfügbarkeit Technische Kapazität Menge : Ist- Definition Die technische Kapazität ist die vorgegebene Menge für eine Anlagengruppe oder einen Fertigungsbereich und... orientiert sich an den technischen Möglichkeiten der Anlage weil eine zu hohe technische Kapazität zu überhöhter Abnutzung und damit zu hohen Kosten führen kann.... ist an den Engpassanlagen der Anlagenkette orientiert: GA 50: Verseifer; ACM: Destillation... ist bezogen auf den Tag um den Bezug zum Abrechnungsmonat herzustellen... kann sich ändern durch Änderungen in der Anlage bzw. dem Verfahren GA 50: 25 to/tag 2009 Agamus Consult - All rights reserved _OEE_Steuerung.PPT 6 OEE is product from the factors availability, performance and quality Availability: 365 d - 24 h Perfomance: Performance takes into account Speed Loss or maximum production Quality: First pass rate OEE is the identical definition Demand is real high, the production plant runs continously without any stops Quality: First pass rate 6

7 . but BCS at Frankfurt site made a further development to maximize the local benefit of the KPI OEE Weak points of OEE from a local view The classical OEE-definition is a good definition for plants producing within 24 h/7 d, in a 1- to 3- shift production this definition isn t perfect In the chemical industry the separation into the availability- and the performance -factor is for a continuous running plant often very difficult The OEE-factors availability and performance don t deliver any information about the reasons for the downtime (continuous improvement isn t possible) In our special case no sufficient information about the performance and the weaknesses were delivered by this KPI Enhancement of the OEE required 7

8 The separation of availability and performance losses is difficult to use for best practice in a continuous operated plant Classification of an availability and performance (yield) loss shown in a real time example (e.g. chemical plant) 100 % OEE 8

9 on the other hand a local definition has to be adopted to the site specific situation Types of losses classical OEE for Produktion Equipment Staff Material Utilities, services Rework to be done Unrecoverable, out-of-spec product Intentional slowdown Market / product demand and higher forces can be influenced can t be influenced max. achievable OEE rate for a 1- shift production can be <= 23% The consequence means to skip all types of losses that can t be influenced by the site (within the OEE 100% definition) Result: Introduction of a KPI Site-specific Equipment Effectiveness (SEE) as a control devicce 9

10 In contrast to the traditional OEE-definition losses will be adopted to the origin (company) lossess OEE (global) losses SEE (site) SEE = SEE technical + SEE Logistics + SEE produktion + SEE others 10

11 Result: OEE/SEE continously improves 96 % 79 % Adaption of 100 % definition by 10% 11

12 OEE/SEE a beneficial tool to improve the production OEE (Overall Equipment Effectiveness) is a best practices metric that identifies the percentage of planned production time that is truly productive. An OEE score of 100% represents perfect production, manufacturing only good parts, as fast as possible, with no down time. OEE is useful as both a benchmark and a baseline. As a benchmark it can be used to compare the performance of a given production asset to industry standards, to similar in-house assets, or to results for different shifts working on the same asset. As a baseline it can be used to track progress over time in eliminating waste from a given production asset. Business Challenges OEE is a mixture of a corporate approach and helps to identify process goals helps to increase yield, improve efficiency and effectiveness Solution(s) OEE/SEE is a Business solution, which can show you a potential weakness in your production assets/process Results and Benefits As shown above, a measurable additional value could be achieved by increasing the productivity e.g. production increase from e.g. 79% to 96 % 12

13 Thomas J. Lang Consultant (former BayerCS AG) 13

14 THANK YOU Brought to you by 14