Post on 14-Jun-2015
description
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
4
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…
5
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
7
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
8
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
9
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
11
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.
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
Downtime – Manual Reason Code Entry Required
Downtime – Pareto Popup – Counts w/ Duration
Production by Shift Report
Should be crates
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?