Growy’s Lean
Overall Equipment Efficiency (OEE)
Tracking & Reporting App
OEE is a monitoring calculation derived from Lean
Manufacturing principles, and can be used across any
industry reliant on production equipment.
Many organisations see the value in the OEE approach,
but do not have machinery capable of auto-reporting.
This presentation is intended to assist people in using
Growy’s Lean OEE Tracker, and tailor the App functionality
to their own business needs.
For feedback / further assistance please email
damian@growy.com.au or via Facebook @Growth Improvements
Contents
Why measure OEE ?
 Components of the OEE Calculation
 Visual OEE Breakdown
 App Functions
 App Workings
 Create & Edit Machines
 Availability
 Performance
 Quality
 Calculate Overall Efficiency
 Calculate Lost Opportunity
 Tips for Emailing Reports
 Damian Grow’s Bio

© Growth Improvements Pty Ltd 2013
Why Measure OEE ?
Overall Equipment Efficiency (OEE), otherwise known as Machine
Efficiency, is a tool utilised by Lean Manufacturing principles. The
aim is to reduce improve productivity by reducing waste and
improving quality of your product.
Absorbing waste / low quality levels reduces the profitability of
businesses, which can often be measured in hundreds of thousands,
even millions, of dollars.
Many businesses accept excessive waste as ‘normal’, however it is
usually a higher priority to solve once the true figures are known.
Growy’s Lean OEE Tracker will assist in establishing baseline data
and tracking your efficiency trends, as you methodically recover
your financial Lost Opportunity.
© Growth Improvements Pty Ltd 2013
Components of the OEE Calculation
OEE comprises three key elements:
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Availability: % of time the machine runs compared to the allocated
shift time.
Performance: % of output compared to the machine’s designed
capability.
Quality: % of product produced Right First Time (RFT).
OEE % = Availability x Performance x Quality
World Class Standard for OEE is 85%, typically from:
•
•
•
90% Availability
95% Performance
99.5% Quality
How do you think your machinery compares…?
© Growth Improvements Pty Ltd 2013
Visual OEE Breakdown
AVAILABILITY %
Downtime
Losses
Machine Actual Operating Time
Available Shift Time
X
PERFORMANCE %
Machine Actual Performance
Maximum Machine Capability
QUALITY %
Right First Time Product
Speed
Losses
X
Quality
Losses
Maximum Quality of the Goods Produced
=
% OEE
© Growth Improvements Pty Ltd
App Functions


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Growy’s Lean OEE Tracker is available in iOS (Apple) or
Android format.
The App can track up to 10 machines, or specific product
parameters from the same machine.
It will demonstrate your machine’s OEE %, and the gap
between your current state and the world class benchmark.
It will demonstrate your annual, financial Lost Opportunity
against your calculated efficiency, per machine / product.
Excel based reports can be emailed at any time or stored for
up to 60 data samples, for bulk upload.
© Growth Improvements Pty Ltd 2013
Preparing to ‘Create Machine’
It is important to set up the Machine on the App, using the most accurate but
easily accessible data. Determine the following:
Availability: Determine if data be collected to the nearest minute of operating
time, or are you better off using decimal places ie. 6.25 = 6hrs 15 minutes.
Performance: Determine what is the Value Adding element of the machine’s
function. Do you measure performance by Machine Speed (rpm, unit’s per
minute, meters per minute etc). Or perhaps Machine Capability per Hour is
what is recorded by the Operators ie. 1215 units per operating hour on average.
Quality: Determine how Quality is measured for that machine. Is it a Scrap %,
RFT Unit Count or via Starting versus Finishing Yield quantity?
Production Time: What is the maximum time the machine ‘could’ operate in
terms of hours, days, weeks per year?
Costs: Is it better to allocate a cost per unit, or a productivity rate per hour?
Does your business speak in terms of Sales costs, or Production Costs? Make it
as consistent as you can.
© Growth Improvements Pty Ltd 2013
Create Machine
Production Measures:
If you are having trouble allocating a set
speed, or hourly capability, you might use the
figure 60 in the Value Added Production field.
This would represent the maximum number
of minutes per hour your machine was
performing it’s ‘Value Add’ task. Example, a
metal machinist using a lathe might only be
physically cutting steel (making swarf) for 32
minutes in every 60. The remainder is unload
/ reload of components, stopping for
measurements etc. These are the tasks that
need to be ‘optimised’ to improve the
Performance % and therefore the OEE.
Comments Box:
Use this to make notes against the Machine
Profile as a reminder of how the machine
parameters were decided.
© Growth Improvements Pty Ltd 2013
Edit Machine
Naturally, parameters change from time to time. Shift lengths alter (8hrs
to 10 hrs), Performance measures alter (upgraded drive motors for
increased speed), and costs alter inline with financial year increments.
The user can make adjustments to the Machine Profile at any time
through the Edit Machine function.
Alternatively, as the App will hold up to 10 machines, you may choose to
set up profiles for multiple products that are created by the same
machine.
For example, a Bottling Line would perform differently when filling small
bottles of free running liquid, compared to large bottles of soapy liquid.
By tailoring the App to product level, you will gain more accurate data
than using an average across all products manufactured.
It’s up to you… !!
© Growth Improvements Pty Ltd 2013
Calculating Availability
Availability =
Time Operating / Planned Time
When creating the profile, use whatever the
shift time is.
Major Losses that detract from your
availability are Breakdowns and Set Up
times, and can also include lack of Raw
Materials, No Operator available, Meetings,
Training etc where the Machine is shut
down to accommodate the interruption.
If the user has the ability to identify the
Operating Time down to the minute, that
would give you better data accuracy.
© Growth Improvements Pty Ltd 2013
Calculating Performance
Three options are offered to calculate
Performance:
•Units
Produced: The average
number of units for each hour of
Operating Time.
•Machine Speed: The average speed
of the machine for each hour of
Operating Time.
•Value Added Production: The
average number of minutes where the
machine was producing it’s ‘Value’ for
each hour of Operating Time.
© Growth Improvements Pty Ltd 2013
Calculating Quality
Three options are offered to calculate
Quality:
• Reject
Count: This asks you to enter how
many units were produced Right First Time
(RFT) and how many units were rejected
(either as scrap or for rework).
• Scrap Percentage: Using this option, simply
enter the scrap figure as a whole number ie.
4% scrap would be entered as 4. This will
result in a 96% Quality metric.
• Yield Losses: Used often when transferring
product from a large vessel to smaller
packages ie. Started with 1000 litres,
however due to spillage and a burst hose,
only 960 litres were packaged. That would
also result in a 96% Quality Metric.
© Growth Improvements Pty Ltd 2013
Calculate Overall Efficiency
Once you select the machine, the App will show you the OEE score
for your last entry, and the gap between your score and the world
class benchmark of 85%.
Remember:
World Class Efficiency = Availability 90%, Performance 95%, Quality 99.5%.
You have the option of saving and emailing that entry worth of data,
or waiting until a set time to email through a group of data points.
If you do not wish to email the data, it will save itself simply by going
back to the Dashboard.
© Growth Improvements Pty Ltd 2013
Tips for Emailing Reports
Ideally, the operator(s) would email the last shift’s worth of data
to a central point (supervisor, production assistant etc) on a
daily basis. That would allow for:
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Only a one day lag between the shift and the analysis; enabling
problem solving to occur almost immediately, and
If the Machine Operator(s) uses the email text field, they can
send through a short description of the causes of low
productivity ie. BD – 2.5H, Motor Trip, ELC
( Decoded: Breakdown for 2.5hrs due to Motor Trip, attended to by Electrical Contractor )
•
This will allow for 2nd tier analysis of issues that need resolving.
However, for organisations that would prefer to use it simply as
a monitoring system, then the function ‘Email Last 60 Samples’
exists, allowing for weekly, fortnightly or monthly data transfer,
dependant on your organisations shift patterns.
© Growth Improvements Pty Ltd 2013
25 years experience in Defence,
Construction, Mining & Manufacturing
Career Summary
Maintenance management with Royal Australian Electrical & Mechanical Engineers
Electrical construction of high-speed passenger ferries
Field service technician within Northern Goldfields mining industry
Services coordination and infrastructure maintenance management
Senior Training and Business Improvement roles
Lean / Six Sigma Black Belt
Improvement highlights
Contributed to $30m in mining improvements during FY09/10 GFC
Facilitated over 200 improvement Lean / Six Sigma projects.
Diploma Qualifications:
 Human Resources
 Training
 Competitive Manufacturing
 Management
Cert IV Qualifications:
 Training & Assessment
 Frontline Management
 Advanced Certificate of Maintenance Engineering - Electrical