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Unilever HPC NA
Overall Equipment Effectiveness Overview
OMAC Presentation

Steve Weber
June 6, 2003
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Content
 Background & Objectives
 Equipment Utilization
 Fundamentals of Time
 Asset Utilization
 OEE: Overall Equipment Effectiveness
 OPE: Overall Plant Effectiveness
 7 Major Losses
 Computing Speed Loss & Minor Stoppage time

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Background & Objective

 The purpose of this overview is to provide an introduction to
the guidelines used to calculate manufacturing
performance and propose some links to PackML.
 The main objective is to provide a framework and
calculation used for TPM based metrics.
 The intent of this presentation is to define the major drivers
of packaging and process performance improvement.
 Equipment Utilization based on 7 days x 24 hours
availability
 Asset ( Capacity ) Utilization
 OEE: Overall Equipment Effectiveness
 OPE: Overall Production Effectiveness
 Note: For all practical purposes a packaging line includes
incoming bottle / case conveying all the way through
palletization.

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Equipment Utilization
 Fundamental Premise - All equipment is available to be
run 7 X 24
Equipment Utilization
24 hours x 7 days
Unscheduled
Time

Running Time

Scheduled
Downtime

7 Major Losses

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Unscheduled Time
 Is the time the equipment is available to run more production.
This measures how much more output is available from the
current assets if needed today
 Holidays
 Mid-Week idle time
 Weekends
 Rate is reduced due to lack of scheduled demand
 Stopped or Off State

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Scheduled Downtime
 Is the time allocated to scheduled activities on the
equipment
 Planned Maintenance / Shutdowns
 Meetings / Training / Breaks
 Trials
 Planned Cleaning
 Stopped, Off or Standby State

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7 Major Losses
 Breakdowns
 Major Stoppages (Stopped, Off, Standby)
 Change Overs (Stopped, Off, Standby)
 Cutting Blade (Off)
 Start Up / Shut Down (Starting, Stopping,
Aborting)
 Performance Losses
 Minor Stoppages (Standby, Stopped)
 Speed Losses (Producing)
 Defects
 Quality Losses (Producing)

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Running Time
 Is the time that is left (Producing)

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Asset ( Capacity ) Utilization

 This defines how effective an asset is being utilized
 The inverse reveals how much more output is available
from the current asset if needed today.
 Graphically Presented :

Asset ( Capacity )
Utilization =

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OEE - Overall Equipment Effectiveness

 This measures the ability to run equipment at the designed speed
with zero defects
 In order to maximize OEE one must reduce the 7 major losses to
zero
 Graphically Presented :

OEE =

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OPE - Overall Production Effectiveness

 This measures how well the supply chain is effectively
utilizing manufacturing assets
 In addition to the 7 major losses, OPE considers planed
downtime and unscheduled time as supply chain losses.
 Graphically Presented :

OPE =

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7 Major Losses
 Each site will have to develop recording and tracking
methods for the various losses
 Graphically Presented :

Unscheduled
Running Time
Time

Scheduled
Downtime

Major
Cutting Blade
Stopppages

Speed Loss Minor

Stoppages
Quality
S/U & S/ D Change Overs
Losses
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Minor Stoppages
 These are all stoppages less than 10 minutes
 For example - equipment jams
 Minor stoppages, although short in duration, are often a
significant total loss when summed up
 Minor stops highlight the area of operator frustration and
increasing trends can identify deterioration of the equipment
 The actual # of minor stoppages are to be recorded and
we will back into the minor stoppage time.
 Be very accurate in capturing the time for the other
equipment losses !
 Number of State Transitions, Duration in a State
 Is <Reason Code> defined and available?

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Major Stoppages
 These are all stoppages 10 minutes or greater
 Equipment Failures - Are failures due to
 Electrical
 Mechanical
 Other Failures
 Stoppages due to packaging defects
 Supplier related downtime
 Warehouse downtime
 For each major stoppage, each individual event should be
recorded noting the duration

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Major Stoppages cont..

 The stoppage time is the total time from the equipment
stopping, until it starts again.
 These stoppages should be grouped into Equipment and
Other failures.
 Equipment failures are stoppages resulting from
equipment deterioration.
 It is the principle responsibility of planned maintenance
to eliminate Equipment Failures.
 Over time, effective planned maintenance will reduce
the mean time between failures (MTBF).

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Major Stoppages cont..

 Graphically presented: (Define Aborting, Stopping, Ready,
Standby, etc., Link to Reason Code- Why the State Change)
 The ramp down and ramp up will be captured in the minor
stoppage time.

"stopped " time

120

100

80
U n its p er m in

60

40

20

0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19
m inute s

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Change Overs
 Change Overs are defined as any “change process” that
needs to be managed on the production floor.
 Change overs include size change overs, washouts, deal
changes, line Sanitizations, etc.
 Change Overs are considered to be non-value added
because they contribute a significant amount of lost time
that should be available for running more demand.
 There are two fundamental operating philosophies in HPC
NA around change overs:
 A Running Change Over ( R-C/O) - situations where you
Run - Changes Over – Run Immediately after the change.
 A Non-Running Change Over ( NR-C/O) - situations where
you Run – Change Over / Down – Run when scheduled to
produce again.
 Unlike other losses Change Overs includes both “stopped”
time to complete the change over, but also the time
required to “ramp up”.
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“Running” Change Overs

 The running change over time begins when the line is
shut down to start the change and ends when the line is
re-started and the hourly case count has reached 50% of
its scheduled rate.
 Graphically presented: (Stopping, Starting, Ready time)
Change Over Time

110
100
% of Scheduled Rate

90
80
70
60
50
40
30
20
10
0
1

10

12
11

Hours

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“Non - Running” Change Overs

 The non-running change over time begins when the line
is shut down to start the change, stops when the labor
has physically changed the line, and begins again when
the line is re-started and stops when the hourly case
count has reached 50% of its scheduled rate.
 Non Running Change Overs Time Graphically Presented:
(Off time??)
Change Over Time - Day One Change Over Time - Day Two

110 110
100 100
90 90
80 80

% of Scheduled Rate
% of Scheduled Rate

70 70
60 60
50 50
40 40
30 30
20 20
10 10
0 0
1

9
1

10

11

12
10

11

12

Hours Hours

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Quality ( Defect ) Losses

 Quality Losses occur when equipment is used to produce
product, which is not immediately available for distribution.
 All product which is not immediately released for distribution
is considered a loss, because of the delay created in the
supply chain.
 Often some of the material can be release after inspection,
but this increases inventory costs and reduces customer
service.
 Quality Losses are normally calculated.
 The quantity of material initially held divided by the design
rate produces the equipment time used to generate Quality
Losses.
 Example:
 Initial Hold 2300 units
 Design Speed 100 units
 Quality Loss 23 min.
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Start Up and Shut Down Losses

 These losses occur when equipment has been shutdown.
Often there are delays in equipment or man power
preventing immediate resumption of production.
 Examples include:
 Start up after annual shutdown
 Start up after holidays or weekends
 Start up after lunches and breaks
 Startup losses include the “ramp up time”. Therefor, the
time required to achieve 50% of the design rate. This is
measured in the same way as Changeovers.
 If the break or other scheduled event exceeds the
scheduled down time the excess time is considered part
of the Shutdown Loss.

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Cutting Blade Loss

 Cutting blade loss captures the time lost in replacing
routine wear items. Only the “stopped or Off” time is
recorded.
 TPM stresses improving the wear components to
significantly increase life.
 Examples include pelletizing, shears, dies, etc.

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Speed Loss - Packaging

 Speed Loss is the lost equipment capacity resulting from
operation at reduced speed. It is important to for
operators to record the actual operating speed to ensure
this loss can be assessed accurately. Current Machine
Speed in Packs/Minute (PML_Cur_Mach_Spd)
 Example:
 Design Speed 100 Units / min.
 Actual Speed 80 Units / min ( Shift Average )
 Speed Ratio = Actual Speed / Designed Speed = .80
 Speed Loss Factor = 1 – Speed Ratio = .20

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Speed (Rate) Loss - Process

 A rate loss occurs when there may be a partial blockage
in the line when running at designed rate.
 Example:
 Design Speed 50,000 lbs. / hr.
 Actual Speed 35,000 lbs. / hr. ( Shift
Average )
 Speed Ratio = Actual Speed / Designed Speed = .70
 Speed Loss Factor = 1 – Speed Ratio = .30

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Computing Speed Loss Time and Minor

Stoppage Time
 Typically, minor stoppage time and speed loss time are
combined in a single, final “bucket” since we do not
capture lost time on the packaging floor.
 Minor stops are captured by recording the number of
events. Typically to complicated to record due to short
duration and frequency.
 The calculation below details the steps to take in order
to compute the time lost on reduced speed and minor
stoppages.
 After all other losses are tabulated the un-accounted for
time falls in this “bucket”
 It begins with the principle that lines should run at their
designed speed.

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Computing Speed Loss Time and Minor

Stoppage Time
 Example
 Available Time: 8 hours
 Actual Production: 1100 Units
 Designed Speed: 300 Units / hr
 Actual Speed: 250 Units / hr
 Losses accounted for:
 Change Over = 1 hour
 S/U & S/D = .5 hours
 Major Stoppages = 1 hour
 Quality = .5 hours

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Computing Speed Loss Time and Minor

Stoppage Time example cont..
 Step 1. Subtract the known losses from the available
time
 8 – 1 - .5 –1 - .5 = 5 hours of Remaining Time
 Step 2. Calculate Speed Loss assuming no minor
stoppages.
 Speed Loss Factor ( SLF ) = 1 – 250 / 300 = .167
 Speed Loss Time = Remaining Time * SLF
 Speed Loss Time = 5*.167 = .83 hours
 Step3. Calculate the total time for Speed Loss & Minor
Stoppages.
 To produce 1100 Units at the design speed should have
taken
 1100 Units @ 300 Units / hour = 3.67 hours of
Theoretical Production Time
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Computing Speed Loss Time and Minor

Stoppage Time example cont..
 The difference between the Remaining Time and the
Theoretical Production Time is the “Bucket Time” which
consists of down time due to both speed reduction and
minor stoppages.
 5 hours of Remaining Time – 3.67 hours of Theoretical
Production Time = 1.33 hours of Bucket Time
 With only minor stoppage time remaining, we have
 1.33 hours of Bucket Time – 0.83 hours of speed loss = .5
hours of minor stoppage time

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Computing Speed Loss Time and Minor

Stoppage Time example cont..
 Reconcile the losses
 8 hours available
 1 hr for Change Overs
 .5 hr for S/U & S/D
 1 hr for Major Stoppages
 .5 hr for Quality
 .83 hr for Speed
 .50 hr for minor stoppages
 = 3.67 hours of Running time
 = 4.33 hour of Total losses

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Calculate OEE
 OEE = (Running Time) / ( Running Time + Major Losses )
 3.67/( 3.67 + 4.33 )
 45 %

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Challenges:
 Provide Usable Data and Information to the Users to Make
decisions.
 Ensure Flexible Standardization for the User to define what is
being captured and how it is used.
 Stratification - Factory, Department, Line, Machine Center,
Component.
 Clarification - What caused the change of state:
 User Input
 Blocked
 Starved
 Electrical or Mechanical Failure
 Protocol for the Myriad of Possibilities, Definitions and local
Environments.

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Thoughts
 The data provided is only as good as the benefits realized
from using that data. Who is the target “Primary User” to
capitalize from the advantages of PackML?
 What is the limit to the information which can be
provided? Did the machine go to standby because it was
“blocked” - because there was a lack of raw materials
downstream, a failure downstream, etc.?
 It would seem that each arrow in the State Diagram
has multiple possible reasons.
 The States, Tags and Counters provide the facts required
to calculate metrics such as OEE. The task of recording
these facts will shift from the operators to the machine,
will increased productivity and better operating
conditions result?

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