The goal of Total Productive Maintenance (TPM) is to increase equipment effectiveness so that each piece of equipment can be operated to its full potential and maintained at that level. To maximize equipment effectiveness, you need a measurement tool that can help you understand your equipment problems so that you can take steps to eliminate them. The key to this understanding is Overall Equipment Effectiveness (OEE).
OEE is a crucial measure in TPM that tells you how well your equipment is running. It is a composite metric that takes into account three factors: the time the machine is actually running (Availability), the quantity of products the machine is turning out (Performance), and the quantity of good output (Quality).
• Availability: Refers to the percentage of time the equipment is available for production. Downtime due to breakdowns, maintenance, and changeovers are considered losses.
• Performance: Refers to the percentage of the actual production rate compared to the theoretical maximum rate. Factors that affect performance efficiency include operator performance, equipment speed, and defects.
• Quality: Refers to the percentage of good quality products produced compared to the total number of products produced. Defects and rework are considered losses.
OEE is calculated as the product of the three factors: OEE = Availability x Performance x Quality. The result is expressed as a percentage, where 100% represents perfect production with no losses.
Overall, OEE is a powerful tool for measuring equipment effectiveness and identifying opportunities for improvement. It provides a comprehensive view of equipment performance and helps to prioritize improvement activities to achieve maximum productivity and cost savings. By using OEE to drive continuous improvement, manufacturing and production organizations can optimize their equipment performance and achieve their business goals.
This OEE presentation is designed by our JIPM-certified TPM Instructor to help you understand the importance of Overall Equipment Effectiveness (OEE) and how it relates to Total Productive Maintenance (TPM). You will learn about the concepts of OEE, including Availability, Performance, Quality, and the Six Major Losses. Additionally, this presentation will provide you with an understanding of the steps involved in collecting and processing OEE data, as well as how to report the results. Finally, you will be introduced to approaches for reducing equipment-related losses to increase OEE and add value to the factory's operations. By the end of this presentation, you will be equipped with the knowledge and skills to effectively use OEE to optimize equipment performance and achieve business goals.
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Note: This training package includes:
1. Overall Equipment Effectiveness (OEE) PPT training presentation (PowerPoint format)
2. OEE poster (PDF format, in color and monochrome, printable in A3 size)
3. OEE calculator (Excel format)
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LEARNING OBJECTIVES
1. Understand the concept and philosophy of TPM and its relationship with OEE.
2. Explain the importance of OEE and how it relates to value-adding work of the factory.
3. Understand OEE concepts such as Availability, Performance, Quality and the Six Major Losses.
4. Describe the steps of collecting and processing OEE data and reporting results.
5. Define approaches for reducing equipment-related losses to raise OEE.
CONTENTS
1. Introduction to TPM & OEE
• What is TPM?
• TPM Principles
• Why is TPM Important?
• TPM Goals
• TPM Reduces Waste
• Eight Strategies ("Pillars") of TPM
• TPM Pillars & Activities
• TPM Benefits
• Relationship Between TPM & OEE
• What is OEE?
• Why is OEE Important?
2. Understanding Equipment-related Losses
• Three Key Factors of OEE
• "World Class" OEE
• Six Big Equipment Losses
• Visualizing OEE & the Six Big Losses
• Equipment Losses & OEE
• Calculating OEE
• Breakdown Losses
• Setup & Adjustment Losses
• Minor Stoppage Losses
• How to Eliminate Minor Stoppages
• Speed Losses
• Steps for Dealing with Speed Loss
• Quality Defect & Rework Losses
• Startup Losses
• How to Eliminate Chronic Defects
• Strategies for Zero Breakdowns
3. Measuring OEE
• Closing the Feedback Loop
• Measuring OEE
• Collecting OEE Data
• Processing OEE Data
• Reporting OEE Data
• Practical Tips for Measuring OEE
4. Improving OEE
• Improving OEE
• Approaches to Improving OEE
• 5 Why Analysis
• Autonomous Maintenance
• Focused Equipment & Process Improvement
• Quick Changeover
• Poka Yoke (Mistake-Proofing)
• P-M Analysis
• How to Sustain TPM & OEE
• Critical Success Factors
*Note: The Japan Institute of Plant Maintenance (JIPM) is a nonprofit research, consulting, and educational organization that helps companies increase organizational efficiency and profitability through improved maintenance of manufacturing equipment, processes, and facilities. The JIPM is the sponsoring organization for the TPM Excellence Award, awarded annually to recognize excellence in company-wide maintenance systems. Based in Japan, JIPM is the innovator of methodologies that have been implemented around the world.
This presentation delves into the six major equipment losses and provides actionable strategies for dealing with each type of loss. It includes practical tips for measuring OEE and emphasizes the importance of involving operators in the data collection process.
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Executive Summary
This Overall Equipment Effectiveness (OEE) presentation is a vital resource for organizations aiming to enhance their Total Productive Maintenance (TPM) practices. Developed by a JIPM-certified TPM Instructor with extensive industry experience, this presentation provides a comprehensive understanding of OEE, including its definition, calculation, and strategies for improvement. Users will gain insights into eliminating equipment-related losses, thereby maximizing operational efficiency and driving continuous improvement initiatives.
Who This Is For and When to Use
• Operations managers focused on enhancing equipment performance
• Maintenance teams responsible for implementing TPM strategies
• Quality assurance professionals aiming to reduce defects and improve product quality
• Continuous improvement leaders seeking to drive efficiency in manufacturing processes
Best-fit moments to use this deck:
• During TPM training sessions for new employees
• In workshops aimed at identifying and addressing equipment losses
• When developing or revising OEE measurement and reporting systems
Learning Objectives
• Understand the concept and philosophy of TPM and its relationship with OEE
• Explain the importance of OEE and its impact on value-adding work in the factory
• Identify OEE concepts such as Availability, Performance, Quality, and the Six Major Losses
• Describe the steps for collecting and processing OEE data and reporting results
• Define approaches for reducing equipment-related losses to enhance OEE
Table of Contents
• Introduction to TPM and OEE (page 1)
• Understanding Equipment-related Losses (page 2)
• Measuring OEE (page 3)
• Improving OEE (page 4)
Primary Topics Covered
• Total Productive Maintenance (TPM) - A company-wide approach to improving the effectiveness and longevity of machines through collaboration among management, operators, and maintenance teams.
• Overall Equipment Effectiveness (OEE) - A measurement used in TPM to indicate how effectively machines are running, calculated from Availability, Performance, and Quality.
• Six Major Losses - Key areas impacting OEE, including breakdowns, setups and adjustments, reduced speed, minor stops, defects, and startup losses.
• OEE Calculation - The formula for OEE, which is Availability multiplied by Performance multiplied by Quality.
• Strategies for Improvement - Approaches to enhance OEE, including 5 Why Analysis, Autonomous Maintenance, and Focused Improvement.
• Data Collection and Reporting - Best practices for collecting, processing, and reporting OEE data to drive continuous improvement.
Deliverables, Templates, and Tools
• OEE calculation template for tracking equipment performance
• Data collection forms designed for ease of use by operators
• Reporting templates for visualizing OEE results and trends
• Guidelines for conducting 5 Why Analysis to identify root causes of losses
• Checklists for Autonomous Maintenance activities
Slide Highlights
• Overview of TPM principles and their impact on OEE
• Visual representation of the Six Major Losses affecting OEE
• Step-by-step guide for calculating OEE and its components
• Strategies for addressing and minimizing equipment-related losses
• Practical tips for sustaining OEE improvements over time
Potential Workshop Agenda
Introduction to OEE (30 minutes)
• Discuss the importance of OEE in manufacturing
• Review the relationship between TPM and OEE
Understanding Equipment Losses (60 minutes)
• Identify the Six Major Losses impacting OEE
• Group activity to analyze current losses in participants' operations
Calculating and Reporting OEE (45 minutes)
• Hands-on session to practice OEE calculations
• Discuss best practices for data collection and reporting
Improvement Strategies (60 minutes)
• Explore various strategies for improving OEE
• Group discussions on implementing these strategies in participants' organizations
Customization Guidance
• Tailor the presentation to include specific equipment and processes relevant to your organization
• Update case studies and examples to reflect current operational challenges
• Adjust the data collection templates to align with existing reporting systems
Secondary Topics Covered
• The role of employee involvement in TPM success
• The importance of training and education in sustaining OEE improvements
• Integration of Lean principles with TPM practices
• Continuous improvement methodologies beyond OEE
FAQ
What is Overall Equipment Effectiveness (OEE)?
OEE is a measurement that indicates how effectively machines are running, calculated from Availability, Performance, and Quality metrics.
How can OEE help improve manufacturing processes?
OEE provides insights into equipment performance, helping identify areas for improvement and guiding efforts to reduce losses.
What are the Six Major Losses that affect OEE?
The Six Major Losses include breakdowns, setups and adjustments, reduced speed, minor stops, defects, and startup losses.
How often should OEE be measured?
OEE should be measured regularly to track performance trends and identify areas for continuous improvement.
What is the role of Autonomous Maintenance in improving OEE?
Autonomous Maintenance empowers operators to take ownership of equipment maintenance, helping to prevent deterioration and improve overall effectiveness.
Can OEE be applied to all types of manufacturing processes?
While OEE is particularly effective in discrete manufacturing, its principles can be adapted to various production environments.
What is the significance of the 5 Why Analysis in OEE improvement?
The 5 Why Analysis is a root cause analysis tool that helps teams identify the underlying causes of equipment-related losses, facilitating targeted improvement efforts.
How can we sustain OEE improvements over time?
Sustaining OEE improvements requires ongoing employee engagement, management support, and a commitment to continuous improvement practices.
Glossary
• OEE - Overall Equipment Effectiveness, a measure of how effectively a manufacturing operation is utilized.
• TPM - Total Productive Maintenance, a holistic approach to maintaining and improving equipment performance.
• Availability - The ratio of operating time to planned production time.
• Performance - The ratio of actual output to the ideal output during operating time.
• Quality - The ratio of good products to total products produced.
• Six Major Losses - Key areas that negatively impact OEE, including breakdowns and defects.
• 5 Why Analysis - A problem-solving technique used to identify root causes by asking "why" multiple times.
• Autonomous Maintenance - Maintenance activities performed by operators to maintain equipment in optimal condition.
• Focused Improvement - Targeted efforts to eliminate specific losses and improve overall equipment effectiveness.
• Continuous Improvement - Ongoing efforts to enhance products, services, or processes.
• Lean - A methodology focused on minimizing waste while maximizing productivity.
• Kaizen - A Japanese term meaning "continuous improvement," often used in manufacturing contexts.
• Poka Yoke - Mistake-proofing techniques designed to prevent errors in manufacturing processes.
Source: Best Practices in OEE, TPM PowerPoint Slides: Overall Equipment Effectiveness (OEE) PowerPoint (PPTX) Presentation Slide Deck, Operational Excellence Consulting
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