Top OEE & Lean Manufacturing Terms Explained

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Top OEE Lean Manufacturing Terms Explained

• Understanding downtime and related terms can be
  your first step towards effectively reducing
  unplanned breakdowns eating up production in your
  shop floor. This guide will help you in
  understanding various technical terms related to
  downtime and OEE which will make it easier for
  you understand even the complex terms.

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5 Why Analysis

• It is a very simple yet effective concept of
  asking questions till the root cause of the
  problem is clearly identified. 5 Why Analysis
  concept originated in Toyota Motors and was
  conceptualized by Sakichi Toyoda for finding the
  root cause of the problems that effected
  production. It is used for exploring cause and
  effect relationship. The principle says that just
  by eliminating the superficial cause of the
  problem wouldnt put an end to it as the main
  cause may still be present and hence it can cause
  the same problem again bringing repeated downtime
  and hence when the problem occurs one should get
  to the root cause of the problem so that
  comprehensive solution can be provided.

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5S Principle

• 5S is one of the best Workplace Organization
  methodologies. It is a concept which originated
  in Japan and it is a technique which enabled
  Just in Time manufacturing. 5S consists of 5
  working principles starting from S in Japanese.
• Seiri meaning Sort Remove all the items which
  are not needed immediately at the workplace and
  keep the workplace uncluttered.
• Seiton meaning Set in Order Keep all the things
  at the work place in the order of their
  requirements so that minimum time is wasted in
  finding them as and when they are required.
• Seiso meaning Shine Keep everything at the
  workplace spic and span so that even the minor
  defects are visible easily and inspect the work
  place on regular basis for checking any problem.
• Seiketsu meaning Standardize Make the procedures
  and methodologies standard so that any lag in the
  system can be identified easily.
• Shitsuke meaning Sustain Maintain the same
  standard so that the problems do not arise in
  future.
• It is a methodology which reduces unnecessary
  problems in the workplace and makes response time
  faster as the required things can be located
  faster and defects can be identified easily.

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TPM (Total Productive Maintenance)

• Total Productive Maintenance (TPM) is a concept
  which focuses on increasing the overall
  productivity of the plant, equipment and manpower
  with reduced breakdowns. TPM is a comprehensive
  approach which aims at reducing the unplanned
  breakdowns, defective productions, slow running
  of the processes and provide a safer working
  environment with no accidents. It is a process
  which focuses on preventive maintenance so that
  unplanned stoppages which not only cause loss of
  production from one assembly line but also affect
  other processes are eliminated. It not only
  focuses on OEE principles but also makes everyone
  associated with the process accountable and hence
  operators too become a part of the process.
• Three main objective of TPM are
• Increasing up time of the various equipment in
  the process
• Reducing the cycle time considerably
• Elimination of the defects in the process

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Overall Equipment Efficiency (OEE)

• Overall Equipment Efficiency is a very important
  metric when it comes to tracking the
  productiveness of any plant or machinery. It is a
  metric which is used to analyze how effectively
  the manufacturing capacity is being utilized. It
  calculates the fully productive time by getting
  the product of the availability of the equipment,
  their performance ratio and the quality of the
  finished goods which gives a good insight on how
  effectively the process is running.
• Availability can be calculated by Run Time/
  Total Planned Production Time
• Performance can be calculated by (Ideal Cycle
  Time X Total Produce)/Run Time
• Quality can be calculated by Good Count/ Total
  Count
• OEE Availability X Performance X Quality

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Autonomous Maintenance

• Autonomous Maintenance is an important part of
  TPM which focusing on preventive maintenance of
  machines carried out by the operator to avoid any
  undue breakdown. It empowers the machine
  operators to carry out regular checks of the
  machines to ensure that they do not develop any
  technical issues due to negligence. This includes
  performing simple maintenance tasks like
  cleaning, lubrication, bolt tightening,
  inspection and monitoring of the machine.

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Planned Maintenance

• Planned maintenance is a proactive preventive
  approach where scheduled maintenance is carried
  out to maintain the functioning of the machines.
  This term should not be considered as downtime of
  the machines as it is a scheduled activity to
  ensure that the unplanned breakdowns can be
  minimized and the uptime and productivity of the
  machines can be improved.

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Quality Maintenance

• Quality maintenance is an important part of TPM
  and it tries to achieve ideal zero defect
  condition from the manufacturing process. This is
  undertaken by understanding and controlling the
  whole process and its interaction with all the
  other components like manpower, material,
  machines, delivery, etc. It aims at eliminating
  defects originating at any part of the process
  and make the whole process more productive.

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Availability Loss

• Availability Loss is an important parameter for
  calculating OEE. It is the time the machines were
  not working during the planned production time.
  The Availability loss can occur due to various
  reasons like equipment failure, material
  shortage, or any other such issue. The time taken
  for the shift changes and other changeovers is
  also considered as Availability loss and during
  that period too the production gets affected.
  Availability loss needs to be minimized to get
  the highest productivity.

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Equipment Loss

• Equipment Loss is one of the six big losses of
  OEE. This is the loss of productivity due to
  breakdown of machinery. It is a loss occurring at
  a time when the plant is scheduled to run but is
  not fully functional due to any equipment failure.

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Performance Loss

• Performance loss is one the major losses in the
  functioning of a plant. Performance loss takes
  into account the loss occurring due to idling and
  minor stoppages, reduced speed or other factors
  responsible for the loss of production speed.
  Performance score of 100 is desired to get a
  good OEE score as it means that all the
  components of the production are running at ideal
  speed and arent encountering any unnecessary lag.

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Quality Loss

• Quality loss is one of the three major losses of
  OEE and it is determined by the process defects
  and reduced yield of the plant. Quality loss
  means a loss of not only the material but also
  the time consumed in producing it, manpower and
  the equipment utilization during that period. A
  quality score of 100 means that a plant is
  producing only quality good during whole time of
  its production.

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Down Time Loss

• Down Time loss is a big OEE loss as it is the
  loss of production due to unavailability of
  equipment due to unplanned downtime. This hampers
  production and leads to idling of the manpower
  and production shortage.

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Error Proofing

• Error proofing is the process of detecting errors
  in the process and equipment so that OEE losses
  can be prevented. Error proofing is a very
  important work as it ensures that the process
  defects and reduced yield is minimized and the
  plant produces quality products and runs to its
  optimum capacity.

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Focused Improvement

• Focused Improvement is an effective technique of
  Lean Manufacturing which aims and reducing
  unplanned downtime considerably so that the
  production efficiency can increase. It aims at
  root cause analysis of the factors causing
  unplanned downtime by 5 why analysis. In this
  process the team goes to the root cause of the
  problems so that the issues can be eliminated
  from the system completely.

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Fully Productive Time

• It is the actual productive time of any plant
  where all the components of the production were
  running on their full capacity. It is an
  important factor in calculating OEE for any plant
  and it means that during this period no
  availability loss, quality loss or performance
  loss was observed.

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Ideal Cycle Time

• It is the theoretical minimum time to produce any
  good. Ideal cycle time is used to calculate the
  efficiency rate of the machines, manpower and the
  process.

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Lean Manufacturing

• Lean Manufacturing is the system to eliminate any
  kind of waste from the production system. It is a
  process which aims at delivering the maximum
  value to the customer with zero waste. It strives
  to optimize the entire process so that process
  defects, wastage and various system losses are
  minimized and value added goods are delivered to
  the customer.

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Net Run Time

• Net Run Time is the actual time the plant was
  working at its full capacity. It is the time the
  plant was functioning subtracting the scheduled
  loss, availability loss and performance loss from
  the All Time available for production.

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Process Defects

• Process Defects are the defective parts produced
  during the production time. It is one of the big
  losses of OEE during steady state production.
  Process defects lead to production of defective
  items which lead to loss of actual productivity,
  material, manpower to produce it and actual
  countable production.

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Production Counts

• It is the number of parts produced during steady
  state production in a manufacturing process.

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Production Rejects

• Rejected parts produced during steady state
  production. It is one of the six big losses of
  OEE. It is also known as process defects.

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Reason Code

• It is the identification number or classification
  for event subcategory. It is used to identify the
  problems of any particular nature in the
  manufacturing process. Reason codes makes it
  easier identify the problems and resolve them
  specifically. It is used to minimize downtime
  losses by proactively identifying the problem
  areas.

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Reduced Yield

• Reduced yield is the reduction is production
  immediately after an equipment failure or setup
  or adjustment of any equipment. It is one of the
  six big losses of OEE.

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Root Cause Analysis

• Root Cause Analysis is the process of getting to
  the root cause of the problem in the equipment
  causing unplanned downtime. It is the process of
  understanding the main reason behind the problem
  by 5 Why analysis where not only the superficial
  reasons are resolved but the actual cause of the
  problem is understood so that the problem can be
  resolved completely and any unplanned downtime
  can be avoided.

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Six Sigma

• Six Sigma is a systematic quality program which
  strives to avoid any deviation in the process. It
  aims at reducing the quality losses by
  standardizing the whole process of manufacturing.
  It is a quality improvement program where the
  system is molded to function in a standardized
  manner so that maximum quality products can be
  achieved.

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SMED

• Single Minute Exchange of Dies (SMED) is a
  program to reduce setup time. SMED is an
  important part of OEE as it increases the
  availability of the machines and operators and
  aims at achieving shorter changeover time.

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TEEP

• Total Effective Equipment Performance (TEEP) is
  the metrics used for measuring performance and
  true capacity of any manufacturing process. It is
  calculated by taking into account equipment
  losses and scheduled losses. It is measured by
  multiplying OEE percentage and Utilization
  percentage.

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Six Big Losses

• Six Big Losses are the six categories which cause
  availability loss, performance loss and quality
  loss leading to reduced Overall Equipment
  Efficiency. The six big losses are equipment
  failure, time taken for setup and adjustment,
  time wasted during idling and minor stoppages,
  reduced speed, process defects, reduced yield.
  These six big losses need to be curbed if any
  process intends to achieved good OEE score and
  increase its production efficiency.

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Bottleneck

• Bottleneck is a point in the production cycle
  where the demand from the resource is equal to or
  more than its actual production capacity.
  Bottlenecks are used to identify machines in the
  manufacturing process which are critical to the
  whole production cycle.

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Band-Aid

• It is the temporary fix applied to any machinery
  during the production cycle. Band-aids are
  superficial treatment of a problem so that the
  process can continue to run till the machine can
  be properly repaired during the scheduled
  downtime. A band-aid might be applied many times
  as it does not provide a permanent solution to
  the problem.

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Competitive Benchmarking

• Competitive benchmarking is the process of
  comparing a plants performance to a best in
  class competitor for understanding the areas of
  improvement. Competitive benchmarking gives
  industries a clear idea on the things to improve
  and the methods to be standardized so that higher
  performance can be achieved.

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Just in Time

• Just in Time production methodology aims at
  reducing inventory waste by producing only the
  goods which are required by the customers and as
  they are required. It is system devised to reduce
  the waste associated with overproduction.

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Key Performance Indicators (KPIs)

• Key performance indicators (KPIs) are the
  measurable parameters which indicate the
  performance of any business or process. KPIs are
  used to measure the quality standards followed
  and the results attained. These are the factors
  used to evaluate the success of any process and
  may differ from process to process.

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Planned downtime

• It is the amount of time scheduled in the
  production for maintenance of plant and
  equipment. It is a time utilized for repair or
  upgrade of the machinery so that higher
  efficiency can be achieved. This time helps in
  increasing the reliability and performance of the
  machines so that unplanned downtime can be
  minimized and the process runs smoothly in the
  productive hours.

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Predictive Maintenance

• This is a maintenance technique used for
  understand the condition of in-use machinery so
  that they can be serviced before any unplanned
  downtime takes place. Predictive maintenance
  analyzes the condition of the machines based on
  their performance and predicts which machines
  need to be serviced on priority.

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Preventive Maintenance

• Preventive maintenance is carried out on machines
  still in use so that they do not fail and cause
  unplanned disruption of work. It is a task
  undertaken by machine operators to ensure that
  the machines keep working in the desired
  condition.

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Reactive maintenance

• Reactive maintenance is the process of attending
  a machine which has broken down during the
  working hours. It focuses on restoring the
  machine to its working condition so that the
  production process can be maintained.

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True Downtime Cost

• True downtime cost is the calculation of the
  actual cost associated with the downtime of a
  machinery in any plat or manufacturing unit. It
  takes into consideration all the factors
  associated with the downtime and the processes
  affected by it and denotes a monetary value to
  it. Like when a machine breaks down not only the
  cost of the machine breakdown is associated with
  it but also the labour which has gone idle, the
  loss of production caused due to it and the other
  processes which are affected due to
  unavailability of the products from that machine
  are taken into account. It considers all the
  tangible and non-tangible costs of the process.

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