Managing OEE to optimize

Cement Plant Performance.

A case study for Cement Industry
OEE (Overall equipment effectiveness)

Abstract

“If you cannot measure it, you cannot improve it.”(Lord Kelvin)
It is a common opinion that productivity improvement is nowadays the biggest challenge for Companies in order to
remain competitive in a global market. A well-known way of measuring the effectiveness is the Overall Equipment
Efficiency (OEE) . It has been firstly developed by the Japan Institute for Plant Maintenance (JIPM) and it is widely used
in many industries. The strength of the OEE is in making losses more transparent and in highlighting areas
of improvement. The goal is to show as OEE is a good base for optimizing the factory performance. The OEE
performance indicator provides a way to measure the effectiveness of manufacturing operations from a single piece of
equipment to an entire manufacturing.
Introduction
Effectiveness and efficiency are very important in today's competitive market. Greater the effectiveness and efficiency
more productive is the organization. Overall equipment effectiveness is such a performance measure, which indicates
current status of production with least calculations. It also helps to measure losses and corrective actions can be taken
to reduce it. Overall equipment effectiveness (OEE) is a product of three important parameters, Availability,
Performance Rate and Quality Rate. When higher productivity is expected the machine tool which are involved in
manufacture of finished goods, must be reliable. Reliability includes availability of machines with least down time. If
MTBF (Mean Time Between Failure) is more, it indicates machines are available for its desired performance. Attempt
must be made to reduce mean time to repair (MTTR) and improve MTBF. It requires failure data analysis and root cause
analysis. The failure data collected will help us to calculate availability of equipment.
Overall equipment effectiveness (OEE) is based on three factors:

• The availability of equipment

• How equipment performs versus its specifications
• What kind of quality the equipment produces

In practice, OEE is calculated as the product of its three contributing factors:

OEE = Availability × Performance × Quality

Data were collected from the production unit to calculate the OEE percentage. The amount of three losses i.e. downtime,
speed loss and quality loss was measured and liable factors behind these losses were identified.
Six Big Losses

One of the major goals of TPM or OEE programs is to reduce and/or eliminate what are called the six big losses the most
Common causes of efficiency loss in manufacturing. The following table list of six big losses.

(a) Breakdown.

Eliminating unplanned Down Time is critical to improving OEE. Other OEE factors cannot be addressed if the process is
down. It is not only important to know how much Down Time your process is experiencing (and when) but also to be able to
attribute the lost time to the specific source or reason for the loss

OEE Losses Six Big Losses Event example

Down time Losses Break downs, set up, warm up Tooling, Failures, Unplanned, Maintenance, Breakdowns, Equipment, Failure
time and adjustment

Speed Loss Small stops and obstructions, Obstructed, Product Flow, Component Jams, Mis feeds, Sensor Blocked, Delivery Blocked
operator inefficiency and Cleaning/Checking
decreased speed

Quality Loss Rejects in early production Setup/Changeover, Material, Shortages, Operator, Shortages, Major Adjustments
period, Rejects in stable
production period
(b) Set up and adjustment

Tracking Setup Time is critical to reducing this loss, together with an active program to reduce this time (such as an SMED
- Single Minute Exchange of Dies program). Many companies use creative methods of reducing Setup Time including
assembling changeover carts with all tools and supplies necessary for the changeover in one place, pinned or marked
settings so that coarse adjustments are no longer necessary, and use of prefabricated setup gauges.

(c) Small Stops and Reduced Speed

Small Stops and Reduced Speed are the most difficult of the Six Big Losses to monitor and record. Cycle Time Analysis
should be utilized to pinpoint these loss types. In most processes recording data for Cycle Time Analysis needs to be
automated since cycles are quick and repetitive events that do not leave adequate time for manual data-logging.

(d) Startup Rejects and Production Rejects

Startup Rejects and Production Rejects are differentiated, since often the root causes are different between startup and
steady-state production.
COMPONENTS OF PLANT OPERATING TIME

OEE analysis starts with Plant Operating Time. It is the amount of time the facility is open and available for equipment
operation. It is the maximum amount of time and is a constant. A day always consists of 24 hours of 60 minutes each. A week
always consists of 7 days of 24 hours. A year always consists of 52 weeks. It is also called Theoretical Production Time.

(a) Planned Production Time

When a category of time called Planned Shut Down is subtracted from Plant Operating Time, the remaining is Planned
Production Time.

(b) Operating Time

From Planned Production Time, Down Time loss is subtracted to get Operating Time.

(c) Net Operating Time

From Operating Time, speed loss is subtracted which includes any factors that causes the process to operate at less than the
maximum possible speed while running.
(d) Fully Productive Time

From Net Operating Time, Quality Loss is subtracted which accounts for produced pieces that do not meet quality
standards, including pieces that require rework. The remaining time is called Fully Productive Time.
How do we calculate OEE ?

OEE excludes planned shutdowns such as preventive maintenance, holiday shutdowns, and periods when there are no
Orders to produce. When you subtract this planned downtime from total plant operating time, you are left with planned
production time. OEE is calculated on planned production time. The ideal manufacturing facility is one that produces the
Product, as quickly as possible, with no unscheduled down time. This is an OEE of 100%, which is difficult, if not possible
to achieve. For discrete manufacturing plants, world class OEE is generally about 85% or better.

OEE= Availability x Performance x Quality

Availability= Operating time/Planned production time

Performance= Actual output capacity/Maximum rated capacity

Quality= [Actual output - Scrap/rework]/Actual output

ACPL Production Data Collected for (February-2020)

ACPL Data Production ton KWH

Lime stone Crusher 120447 151888
Raw Mill 116138 2693140
Kiln 72500 2551380
Coal Mill 72500 386586
Cement Mill#01 55788 2234607
Cement Mill#02 13759 433386

(1)Lime stone Crusher

Crusher runs 10 Hrs daily instead of 24 Hrs.

Down time = 10 Hrs.

Availability = Operating time/Planned production time

= 280hrs/290hrs

= 96.55 %

Performance = Average actual production rate (tph) / Standard production rate (tph)

Average production (TPH) = 120447(TPM) / 29 daysx10hrs

= 415.33 TPH

Performance = 415.33 TPH / 600 TPH

= 0.69 or 70 %

Another Method to calculate performance:

Availability time = 290Hrs

Total Production = 120447
Machine capability time to produce same capacity = 120447/600

= 200.74 hrs

Performance by time = 200.74/290 = 0.6922 or 70 %

Note: Same production 120447 ton we can produced in 201 Hrs instead of 290 Hrs and save the electricity
consumption for 90 Hrs.

Quality = Actual output – Losses(scrap) / Actual output

If 100 ton of rejectable product assume in 1 month than quality becomes.

= 120447-100/120447

= 99.91 %
OEE = Availability x Performance x Quality

= 0.9655 x 0.70 x 0.9991

= 0.675 or 67.5%

Note: A world class OEE is considered to be 85 % or Better.

Raw Mill

Availability = Operating time/Planned production time

= 540hrs/580hrs

= 0.9310 = 93.10%

= 93.10 %

Performance = Average actual production rate (tph) / Standard production rate (tph)

Average production (TPH) = 116138 (TPM) / 29 daysx20 hrs

= 200.23 TPH

Performance = 200.23TPH / 170 TPH

= 1.17 or 117 %
Another Method to calculate performance:

Availability time = 580Hrs

Total Production = 116138

Machine capability time to produce same capacity = 116138/170

= 683hrs
Performance by time = 683/580 =

= 1.17 or 117 %

Quality = Actual output – Losses(scrap) / Actual output

If 50 ton of rejectable product assume in 1 month than quality becomes.

= 116138 -50/116138

= 99.95 %
OEE = Availability x Performance x
Quality

OEE = 0.9310 x 1.17 x 0.9995

= 1.08 or 108 %

Note: A world class OEE is considered to be 85 % or Better.

kiln

Availability = Operating time/Planned production time

= 696/696hrs

= 1.0 = 100 %

= 100 %

Performance = Average actual production rate (tph) / Standard production rate (tph)

Average production (TPH) = 72500 (TPM) / 29 days

= 2500 TPD

Performance = 2500TPD / 2500TPD

= 1.0 or 100 %
Another Method to calculate performance:

Availability time = 696Hrs

Total Production = 72500

Machine capability time to produce same capacity = 72500/2500TPH

29 DAYS or 696 hrs

Performance by time = 696/696 = 1.0 or 100 %

Quality = Actual output – Losses(scrap) / Actual output

If 50 ton of rejectable product assume in 1 month than quality becomes.

= 72500 – 50 / 72500

= 99.95 %
OEE = Availability x Performance x
Quality

OEE = 1.0 x 1.0 x 0.9995

= 0.9995 or 99.95 %

Note: A world class OEE is considered to be 85 % or Better.

Effect of Computerized Maintenance Management System on a Cement Production Plant

Abstract: Computerized Maintenance Management System (CMMS) is a tool tailored to support maintenance business
functions of production systems. Market available CMMS software programs seldom meet the needs of each organization’s
peculiar maintenance functions. Therefore, this work investigated the effects of CMMS on a cement production plant. The
materials used included a Computer and Networking system and maintenance software.

Critical assets considered under this study are Limestone Crusher (LC), Cement Mill (CM) and Kiln (KI) among others
identified. Key Performance Indicators (KPIs) such as Plant Reliability Factor (RF), Number of Stoppages for Incidents (NSI)
and Production Losses (PL) were used as basis for the evaluation which covered period from year 2013 to 2015.
BENEFITS OF OEE
Implementing an adequate OEE system brings immediate financial benefits to manufacturing operations. Some of these
benefits are listed below.

1. Reduced Downtime Costs

When a critical machine is inoperable, it brings downstream operations to a standstill. This can negatively affect delivery
commitments to the customer, which in turn impacts cash flow and revenue

2. Reduced Repair Costs

OEE enables predictive maintenance that can dramatically reduce repair costs. As the historical database of downtime
reasons grows, the maintenance department can discern trends to predict an impending failure. Also, by interfacing the OEE
system to a CMMS (Computerized Maintenance Management System) system, the maintenance department can take
proactive steps to do predictive maintenance.

3. Increased Labor Efficiencies

Due to current economic conditions, most manufacturing companies have downsized considerably. Consequently,
manufacturers are eager to optimize the productivity of their existing workforce. An OEE system helps, because it not only
captures operator downtime reasons, but also productivity data.
4. Reduced Quality Costs

Rate of Quality is a percentage of good parts produced versus the total parts produced. Thus, an OEE system must capture
the quantity of total parts produced, the number of scraps and defects and the reason for defects. Because this information is
captured at a specific machine or line level, By tracking context-rich quality data using OEE, production managers can
identify root causes and eliminate further costs associated with rework and scrap. Improving the focus on quality at every
stage of production also reduces warranty costs. In the previously cited Industry Week survey, world-class manufacturers
benefit from first pass yields of 97% (median value), while scrap and rework are 2% (median value) and warranty cost is 1%.

5. Increased Personnel Productivity

An OEE system enables the shop floor to go paperless. Typically, facility operators and supervisors spend an enormous
amount of clerical time recording, analyzing and reporting downtime reasons and root causes on paper, then further
explaining these reports to management. An OEE system captures and reports downtime and efficiency automatically. This
saves time lost in non-value added reporting activities and allows personnel to focus on more valuable tasks. With OEE,
everyone from the plant floor to the boardroom is more informed, more often, more easily.

6. Increased Production Capability

The net effect of reduced machine downtime, higher productivity of operators and reduced defects is the ability to achieve
higher production levels with the same amount of resources.
CONCLUSION
The definition and use of Overall Equipment Effectiveness over the years has been widely debated. Many practitioners
have found that OEE has several uses and definitions which have led to considerable confusion when comparing machine-to-
machine, plant-to-plant or company to company. Unfortunately, OEE was not designed to make comparisons from machine to
machine, plant-to-plant, or company-to-company, but it has evolved to these common levels of misuse. OEE is not a
statistically valid metric, but it has been used as such for years. OEE does not diagnose a specific reason why a machine is not
running as efficiently as possible, but it helps to categorize the areas for initiating the equipment improvement. Modified
Overall Equipment Effectiveness helps to analyze short time losses and long time losses separately.
Research Presentation End