TPM Loss Analysis

How to improve and utilize machines and equipment

1. TPM Loss - Analysis Suni Vatnhamar 2016 1

2. Total Productive Maintenance Loss analysis: a method to improve machine utilization 2 A presentation arranged by Suni Vatnhamar 2016 (MBA – B.SC. Technical Engineering)

3. Content Suni Vatnhamar 2016 3 Active use of the KPI ’ s – Policy Deployment Loss analysis OEE in detail KPI and loss driven improvement process

4. Content Suni Vatnhamar 2016 4 Active use of the KPI ’ s – Policy Deployment Loss analysis OEE in detail KPI and loss driven improvement process

5. The Cockpit Suni Vatnhamar 2016 5 The vision and strategy is the way ahead The KPI’s (Key Performance Indicator ) are the instruments to take the right actions to bring us towards the vision Strategy and vision OEE Reject rate Delivery precition EVA

6. Operational shop floor targets Suni Vatnhamar 2016 6 Targets for all departments and organisational levels ”What you do not measure – you can not improve” The closer you are to the problem, the more often you need to follow up Working towards a target is motivating and builds team spirit SHIFT DAY WEEK KPI’s for me need to be Measureable Directly influenced by my performance Directly linked to the site strategy and KPI’s

7. KPI deployment Suni Vatnhamar 2016 7 Vision/ Strategy Target Target Target Operator/shop floor teams Shift leader Production manager KPI General Manager (Plant manager) Maximum 3 KPI ’ s on shop floor level KPI ’ s per level based on “ red ” KPI ’ s and loss analysis

8. Policy deployment Suni Vatnhamar 2016 8 3 years 1 year Month Week Day Shift Hour Act – Create standards to sustain result Strategy Budget targets Operational targets Plan – ”Red” numbers. Improvement plan Check – Did it work? What was the result? Do – Analysis of why and carry out actions Action plan DAILY ACTION PLAN

9. Visual Control Suni Vatnhamar 2016 9 Red: Below target ”Traffic light” Yellow : Above last year , but below target Green: Above target Equipment status Visualize the status of the operation Digital, real time process status visualisation

10. Team Board - Active use of shop floor Targets - Suni Vatnhamar 2016 10 Measure Analyse Plan/Do Team KPI Board Why ”red” figures? Team Team picture Team name Team logo Team roles: Leader:…. Target status M Tu W Th F Rejects D E N 100 200 50 70 150 Process problems (min) D E N 150 20 60 200 100 100 50 50 70 150 40 20 50 70 25 100 20 15 100 200 50 30 150 30 70 Actionlist

11. Content Suni Vatnhamar 2016 11 Active use of the KPI ’ s – Policy Deployment Loss analysis OEE in detail KPI and loss driven improvement process

12. Suni Vatnhamar 2016 12 Machines and equipment do represent the main elements bringing margins to the unit Machines and equipment do also represent a significant part of needed investments / use of cash Investments in machines and equipment will be an ongoing process to: - Secure needed capacity to cover customer orders - Secure required capability to meet customer requirements - Secure needed performance to secure completeness in the market Therefore: Implement a best possible process to secure utilization of cash represented in machinery and equipment by: - Reducing stoppage time,- loss not creating margins - Reducing production of non conforming articles,- not creating margins, only waste - Continuous improvement of performance by reducing cycle, to reduce need of machine hours to cover customer orders - Continuous improvement of performance by reducing cycle, to improve machine hour contribution: GP / hour Why high focus on production performance measurement?

13. Suni Vatnhamar 2016 13 OEE – What does it tell me? OEE = Overall Equipment Effectiveness OEE is giving machine output compared to maximum possible output in the same time periode Number of approved products produced x Min theoretical cycle time OEE = ---------------------------------------------------------------------------------------------------- Utilised machine time Lost production Machine output Time Actual output Maximum possible output

14. Suni Vatnhamar 2016 14 A Utilized time No order, trials/testing B Net production time Stoppage time: Breakdowns no people, no material, planned maintenance, start/stop C Possible theoretical production at optimal cycle Availability (OEEa): B/A D Actual production Performance Loss: Performance (OEEp): D/C E Actual production Quality (OEEq): F/E F Approved production Quality Loss: Rejects OEE = B/A x D/C x F/E set up and change over Cycle loss, minor stoppages, adjustments Rework OEE - detail Total yearly time = 365 days x 24 h Installed capacity = maximum available time within agreed shift solution Weekends, holidays

15. Stoppage time categories Category Description Set up/change over From last article from machine representing ended order to first article from machine representing the new order approved for packing, including both tool change and color/material change. Waiting for resources included Machine cause Stoppage time represented by machine failures (machine and integrated robot), waiting for resources included Tool cause Stoppage time represented by tool failures, waiting for resources included Equipment cause Stoppage time represented by additional equipment installed in machine cells, waiting for resources included Process problems Stoppage time represented by process problems giving stoppage time due to non conforming production / high frequency of non conforming production. Waiting for resources included Planned maintenance Stoppage time represented by planned maintenance activities. Planned maintenance outside the installed capacity (in weekends and holidays) and total overhaul of machine is not accounted for No material Stoppage time represented by shortage of ingoing materials / packaging materials No operator Stoppage time represented by shortage of operators. If there is no customer need,- machine status should be reported in category no order Start up/shut down Stoppage time due to shut down for and start up of machine for weekend, holiday etc (start up after all other stoppage categories,- lost time categories, are included in “ basic ” stoppage time reported) Other Other reasons for stoppage time,- not defined above Suni Vatnhamar 2016 15

16. A machine have a minimum possible cycle time for product A of 20 seconds. The following information is given for a production shift. Measure the OEE for the shift. Product Start Stop Number good produced A 07 15 1000 OEE – example 1 How many hours possible production is lost? Solution: Maximum output for 8 hour production = 3 / min * 60 min * 8 hours = 1440 OEE = Number produced / maks output = 1000 / 1440 = 69% 8 h Solution: Lost time = 8 hours x (100 % - 69 %) = 2,5 hours 5,5h 2,5h OEE = 69 % Suni Vatnhamar 2016 16

17. A machine has for product A en minimum cycle time of 20 seconds and for product B a minimum cycle time of 30 seconds. The following information is given for a production shift. Measure the OEE for the shift. Product Start Stop Number produced A 07 12 600 B 12 15 180 OEE – example 2 Solution: Maximum output of product A = 3 / min x 60 min x 5 hours = 900 OEE product A = 600 / 900 = 67 % Maximum output of product B = 2 / min x 60 min x 3 hours = 360 OEE product B = 180 / 360 = 50 % OEE total 8 hours = 67 % x 5/8 + 50 % x 3/8 = 60,6 % Suni Vatnhamar 2016 17

18. OEE availability (OEEa) = Utilised time – Stoppage time Utilised time Stoppage time categories (see next page for further definitions) Machine cause, equipment cause, tool cause, process problems (breakdown) Set up/change over Planned maintenance No material No personnel Start up/shut down NB: Planned maintenance outside installed capacity time is not accounted for (overhaul etc) NB2: Trials and testing is not affecting OEE availability NB3: All waiting time is included in the given stoppage time categories (waiting for resources, waiting to start up after breakdown etc) Suni Vatnhamar 2016 18 OEE Availability

19. OEE performance = Actual production in net production time Possible theoretical production at optimal cycle Possible theoretical output at optimal cycle Single unit production = Standard setting cycle time in MRP for specific item/machine combination Standard values in the MRP-system should be the same as expressed in the “ process books ” (process data carriers) representing best possible performance at approved capability ( Cpk ) Actual values should be controlled against standard values at every start up, and documented NB: OEEp should never hit 100%! When OEEp for a specific item/machine combination is >100% for a certain time period, an adjustment of the standard setting cycle time in MRP should be made . Performance Loss: Cycle time loss = (standard cycle time/actual cycle time) x net production time Minor stoppage (machine stops < 5 minutes and non recordable stoppages) Adjustments (machine still running, but reduced output) Suni Vatnhamar 2016 19 OEE Performance

20. OEE quality = No. of approved products produced in net production time Total no. of produced units Quality Loss: Rejected products during net production time time Including rejected products during minor adjustments (within net production time) Products rejected after production (reworked) Suni Vatnhamar 2016 20 OEE Quality OEEq (quality) is expressing lost time in net production due to production of non conforming articles Note: OEEq : Calculation should be based on rejected articles inside net production time Internal reject rate: total rejected articles (start up included) -> defined as KPI, see coming slide - Internal reject rate should normally be reported on a level > (100 – OEEq )

21. A machine is producing product A with a minimum possible cycle time of 30 seconds for a 2 cavity machine. The following information is reported for one days production: Day - report Utilised time = 24 hours Total produced = 4250 Total rejected = 250 Actual cycle time = 32 seconds 30 min stoppage for no material 30 min stoppage for no operator 1 hour stoppage for machine cause 1,5 hour stoppage for tool cause 30 min stoppage for start up of machine Loss analysis – Example 3 Measure If time: OEE availability (%) Total lost time and lost time for OEE performance (%) availability, performance and OEE quality (%) quality OEE (%) Suni Vatnhamar 2016 21

22. Example 3 - Solution Solution: Total stoppage time = 30 min + 30 min + 1 hour + 1,5 hour + 30 min = 4 hours OEE a = (Utilised time – Stoppage time)/Utilised time = (24 – 4)/24 = 83,3 % Net production time = 24 – 4 = 20 hours Possible theoretical production per hour = 2 * 2 / min * 60 min = 240 OEE p = Actual production in net production time/possible theoretical production at optimal cycle = 4250/(240x20) = 88,5 % OEE q = No of approved products produced in net production time / total no of produced units = 4000/4250 = 94,1 % OEE = 83,3% x 88,5% x 94,1% = 69,4 % Lost time: Total lossed time = 24 * (100 – 69,4) = 7,3 hours Availability = 4 hours Quality = 250 units / 4 units per min = 62,5 min Performance = 7,3 – 4 – 1,04 = 2,3 hours Suni Vatnhamar 2016 22

23. Content Suni Vatnhamar 2016 23 Active use of the KPI ’ s – Policy Deployment Loss analysis OEE in detail KPI and loss driven improvement process

24. Why are the KPI’s red? To improve the KPI’s we need to know details about the causes of low performance For production, the causes will be connected to the 4M’s Man Machine Methods Materials Attitude Skills Relations Detoriation Maintenance Design Standards Strategy Resources Projects Storage Quality Specification Transportation Hard to measure Suni Vatnhamar 2016 24

25. Machine performance related losses Availability loss Machine cause Tool cause Equipment cause Process problems Change over/Set up Start up/shut down No operator No material Planned maintenance Other (cleaning) Performance loss Cycle time loss Minor stoppage and adjustments Quality loss Rejects Reduces OEE Spoilage Giveaway (overweight) Maintenance/spare parts Consumables Energy Potential cost Real Cost Suni Vatnhamar 2016 25

26. OEEa and loss categories Suni Vatnhamar 2016 26

27. OEEp and loss categories Performance Loss categories: Cycle time loss = (standard cycle time/actual cycle time) x net production time Minor stoppage (machine stops < 5 minutes and non recordable stoppages) Adjustments (machine still running, but reduced output) Suni Vatnhamar 2016 27

28. OEEq and reject loss categories Internal rejects = Rejects during net production + rejects during start up after set – up/change over Note: Rejected parts repaired is also included into the reject rate Set – up/change over Net production time Quality defects = 100% - OEEq Quality defects = Internal rejects Start up after c/o Products approved for packing Suni Vatnhamar 2016 28

29. A machine is producing product A with a minimum possible cycle time of 30 seconds for a 2 cavity machine. The following information is reported for one days production: Day - report Utilised time = 24 hours Total produced = 4250 Total rejected = 250 Actual cycle time = 32 seconds 30 min stoppage for no material 30 min stoppage for no operator 1 hour stoppage for machine cause 1,5 hour stoppage for tool cause 30 min stoppage for start up of machine Loss analysis – Example 3 cont. Measure All losses in % available time Suni Vatnhamar 2016 29

30. Example 3 – Loss Analysis Solution Availability loss % of available time Machine cause 4,2 % Tool cause 6,3 % No material 2,1 % No operator 2,1 % Start up 2,1 % Quality loss 4,3 % (1,04 h) Cycle time loss 5,2% (60/32 = 1,7 units/min -> Loss of 2x(2-1,7) = 0,25 units lost per min. Total units lost = 0,25x60minx20h = 300 units lost = 75 min = 5,2 %) Minor stoppage & Adjustments 4,3 % (4800 – 4250 = 550 units lost to performance -> 550 – 300 = 250 units lost to minor stoppage and adjustements) SUM 30,6% Suni Vatnhamar 2016 30

31. Pareto analysis Suni Vatnhamar 2016 31

32. Agenda Suni Vatnhamar 2016 32 Active use of the KPI ’ s – Policy Deployment Loss analysis OEE in detail KPI and loss driven improvement process

33. Suni Vatnhamar 2016 33 Corporate Strategy: Losses approach OEE Internal Rejects KPI’s Plan Do Check Act 5S, SMED, VSM, TWI, etc. Lean Management Layout changes Effective maintenance program Focused Improvement projects ….. - Management Audits - Visualisation - Standards SOP …. Maint. schedule Line Management daily follow up Corporate Vision and Strategy KPI ’ s Losses Site Year Plan Local site Vision and Strategy KPI ’ s

34. Suni Vatnhamar 2016 34 KPI and Loss driven process KPI ’ s Losses Site Year Plan Focus on “ red ” KPI ’ s Prioritisation

35. Suni Vatnhamar 2016 35 Prioritisation matrix 1 . priority 2 . priority 3 . priority 4 . priority Difficulty (resource need and complexity) High Little Little High Expected effect

36. Suni Vatnhamar 2016 36 Loss driven KPI deployment OEE Increase of 7% Breakdowns Down 3 OEE% Change over Down 2 OEE% No material Down 2 OEE% Maintenance Tool setters Logistics Use the losses to set KPI ’ s at all levels in the organisation, including support functions

37. Suni Vatnhamar 2016 37 PBS tools from Loss analysis Loss Effective maint. Autonomous maint Focused Impr. When you know the losses and understand the problems behind, you can use good leadership and the right tools to remove the losses Which tool to use is dependent on the actual loss Waste 5S SMED Pull Zero defects One Piece Flow Standardised work Standardisation

38. THANKS ! Suni Vatnhamar 2016 38