Chattanooga sme oee down time presentation

Agenda

Asset Effectiveness

▪ The discussion on Asset Utilization• Software Approach

▪ Business Environment▪ Who cares and why▪ Success Criteria and Failures▪ Types of OEE solutions▪ Should I jump right into an OEE initiative? ▪ Some customer applications▪ Open discussion

Asset Performance & Effectiveness

What we are hearing from our customers:

► Demand is Down, Profits are Squeezed

► Management is Demanding Lower Costs of Manufacturing

► Production Management Wants Answers

► Utilities► Usage Variances► Waste/Scrap/Rework► Labor► Lost Production Opportunity► Equipment Repair or Replacement

All Represent Risk to Your Business

We must manage our business better, smarter

► Economic Recession

► Reductions in…▪ Spending▪ Lending▪ Payroll▪ Production▪ Growth▪ Capital Expenditure

► Productivity from Existing Assets is Key

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Further Improving AssetEffectiveness

Asset Utilization science ask...

► Increase Asset Availability?

► Improve Equipment Performance?

► Produce Higher Quality Product?

► Reduce Maintenance Costs?

► Extend Asset Lifecycle?

How do I…

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OEE Software

Help…

► Reduce unplanned equipment downtime▪ By tracking & analyzing equipment utilization

► Improve the output of existing equipment▪ Track & analyze equipment output

(performance)

► Reduce quality related losses (scrap)▪ Track & analyze first pass yield

All require detailed equipment information!

► 200 Mfg. Executives► Diverse Industries

• Oil & Gas• Mining• Utilities• Chemicals• Manufacturing• Waste Water• Pharmaceutical• Food & Beverage

► Results:• Best-In-Class = 20%• Average = 50%• Laggards = 30%

Aberdeen Group Report

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Surveys around the planet

KPI World Class Best-In-Class Average Laggards

OEE 85.0% 89% 81% 59%Availability 98% 87% 76%

What are Best-In-Class doing differently?

Source: Aberdeen Group November 2008

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The Survey says…GAP - Best-In-Class companies operated 30% higher than the laggards!

laggard companies suffered 22% more unscheduled asset downtime

Risk-Based Approach to Minimize Asset Failure

Collaboration Between Maintenance & Production

Advanced Asset Performance Management & Analysis

0% 10%20%30%40%50%60%

17%

29%

44%

25%

38%

54%

Best-In-Class All Others

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Source: Aberdeen Group November 2008

The Answers – Best in class…

Plans of mice and men

13%

18%

24%

33%

28%

42%

47%

31%

59%

28%

34%

39%

33%

34%

45%

43%

39%

56%

28%

39%

0% 20% 40% 60% 80% 100%

Kanban SignalVisibility

Available-to-Promise Support

Real-timeCapacity Loading

ComplianceReporting

Genealogy

Overall Equip.Effectiveness

PerformanceAnalysis

Traceability

Real-time KPIVisibility

Work Order or LotStatus

Now

Within 2 Yrs.

Source: ARC Collaborative Production Management (CPM) Survey Q4 2005

OEE = Availability * Performance * Quality

Example: (.77)*(.65)*(.98)*100% = 49% OEE

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Availability =Net Operating Time

Running Timex 100%

Quality =Actual Output

Good Outputx 100%

A way to define Asset Effectiveness

Is the asset running when its suppose to?

Is the asset producing what it was designed to?

Are the other two doing a good job?

dependency

dependency

dependency

Performance =Target Output

Actual Outputx 100%

Who’s Interested and why?

▪ Executives• Enable Plant-Plant comparison• Decision support Capital Expenditures

▪ Plant Managers• How effective is his team utilizing the assets he

has been given?• What are the high level areas causing reduced uptime?• Will he need new capital to meet production goals?

▪ Production Managers• How effective is my team at scheduling

and running the equipment?

Who’s Interested and why?▪ Line/Area Supervisors

• How are different lines/Areas performing to goal

▪ Maintenance Manager• Where is downtime originating?• What equipment is using the majority of my maintenance

budget and resources’?• Proof that Operations is the real fault

▪ Operators• How I am performing to expectation “Right Now”

as opposed to yesterday

Who’s Interested and why?

▪ Quality• How are downtime events correlating with Quality excursions?

Who’s Interested and why?

Which one do you think is most important?

Who’s Interested and why?

▪ Understanding OEE after the fact

▪ Understanding Quality after the fact

What’s the value in understanding OEE in Real time?

Traditional Asset Effectiveness Program

• Time Consuming

• Error Prone

• Minimal Visibility• No Context• Old Data

Is there something between Up and Down?

► Companies Lack Contextual Data Required to make Sustainable Improvements:

▪ Downtime frequency, Cause▪ Running Below Nominal Rate▪ Long Changeovers or Cleaning Cycles▪ Unplanned Maintenance (breakdown)

► True Root Cause is Often Unknown

Equipment Efficiency

► Real-time (OEE) Monitoring

▪ Monitor OEE• Equipment• Line • plant

▪ Compare• machine to machine• line to line• Shift to Shift• plant to plant

▪ Leverages existing automation system for accurate and timely OEE data

Captures the Right Data

► Consistently Capture Asset State Duration and Reasons

▪ Non-Production States that affect Availability• Downtime, Short Stops, Setup, Tear-Down

▪ Production States that affect Productivity• Slow-Downs/Diverts, Starved In-feeds

► Relate Performance, Availability, Quality

Delivers the Right Information

► Real-Time Feedback on Asset Performance▪ Involving Operators in the Solution

when desirable.

► Pre-Defined Web Reports▪ Drill Down to the Causes of Lost

Performance▪ Provide the Tools to make Informed

Decisions

Types of OEE Solutions

► Hundreds of OEE solutions on the market▪ OEM

• May be proprietary (what does that mean?)• Not Open and therefore cannot leverage beyond specific

implementation• Not Scalable• Proprietary client tools• Specific to a particular equipment type• Limited ability to relate data to other plant information

▪ Black Box• Many localized data collection boxes• No common data store• Proprietary database and client tools• Limited ability to relate data to other plant information

Types of OEE Solutions

► Open System/Best of Breed▪ Utilizes existing automation/SCADA equipment▪ Built using Open databases and client tools▪ Equipment Type Agnostic▪ Scalable across lines/plants/Enterprise

Approach – Success or Failure

► Mistakes/Failures/Shelf-ware▪ Its all about the technology

• Software is powerful but w/o an understanding of manufacturing and equipment, little value.

▪ The science of Equipment Utilization and OEE is critical

▪ Lack of Operations buy-in at ALL levels. • Equipment Operators, Line supervisors, Shift supervisors, Production management

▪ Lack of Executive buy-in – Culture change.• Plant management, Division management, etc

Approach – Success or Failure

► Proven Methodology for success▪ Change management

• Involve the right people at the beginning of the project• Paid for requirements/Analysis

• Definition of goals/roles• Key Stake holders (Executive/Operations/Maintenance/IT/Engineering)

• Functional Requirements• Define constraints• Define Assumptions• Document “as is” condition• Define “to be” solution

• Pilot project based on the requirements• Gain and document success, get buy-in, and roll out.

Approach – Success or Failure

• Who needs to own a Performance solution for it to be successful?

• Can this be an IT, Engineering, Automation project?• Advancements in technology can be deceiving

• No – Operations has to own an Asset Utilization program• OEE is not a technology solution

• IT/Engineering/Supply Chain can be the facilitator or executioner.

• There are many failures and wasted funds of OEE projects that was killed by the operator

• May appear to be successful initially but will become “shelfware” in a years time.

Approach – Success or Failure

• Is Optimization an event ?• An OEE solution is a continuous effort

• Software solutions are good tools but not a miracle worker.• Diligent, hard work is required to have an effective Asset

Utilization program that succeeds over the long haul.

Approach – Success or Failure

Do you need to jump into a full-blown OEE solution..

ORAre there other steps that should be considered first?

• Start with accurate capture and reporting of true downtime.

• Begin to establish and collect accurate of reason codes for those DT events involving the operator as the primary entry point.

• Focus on understanding your real constraints.• Decide which equipment to deploy OEE on.

Real customer applications

Customer Success Stories

► SAB Miller▪ Complete MES Solution including

Performance ▪ Complete Product Genealogy▪ Reduced Scrap

Direct bottom line results…

► 3.8% Improvement in Performance Year over Year► 8% Reduction in Defects► $1.5M contribution to the Bottom Line

Major Beverage Container Manufacturer

• Leading producer of plastic beverage containers• Products in such demand they can sell more than they can produce

► Raised OEE by 3% in first year

► $200,000 ROI on an initial investment of $80,000

► Payback in 5 months

Direct bottom line results…

Another Customer Success Story

More Success Stories

► Within 3 months, identified problem areas in bottleneck machines

► Due to increased efficiency, able to cancel large capital expenditure (> $1.5 Million)

Direct bottom line results…

Major Paper Producer - $22 billion annual revenue• Legacy system relied on manual entry of downtime fault reasons• Planned large capital expenditure to eliminate production

bottleneck

A J&J facility Main Screen

Downtime – Manual Reason Code Entry Required

Downtime – Reason Group Selection

Downtime –Reason Code Selection

Downtime – Post Reason Code Entry

Real-Time OEE Dashboard

Downtime – Pareto Popup – Counts w/ Duration

Performance Overview

Performance Drill Down

Performance Drill Down

Production by Shift Report

Should be crates

Performance Report: Downtime

Application Overview

Machine details

Job Progress

Process Order Handling

Live/Historical Trending

Quadrant Navigation

Reports – Manager

Reports – Reporting Services

SM

Performance Initiatives: “what is practical”!!• How do I get started with a Performance Solution that makes sense for my facility and

experience real success? • How far do I go? What’s first, what’s second?

• Who needs to own a Performance solution for it to be successful?• Can this be an IT, Engineering, Automation project?

• Is Performance the same across all types of process types and can I deploy a one-for-all solution on them all?

• How can I reduce the chance of failure for a Performance deployment?• Is Optimization an event or a process?