Focused Improvement Pillar OEE Losses Definition

Problems in the Current Process

1. Too many people and systems manipulate the information
2. All unaccounted downtime is charged to minor stops
3. Downtime Losses + OEE hardly close to 100%
4. Open spreadsheet to calculate OEE
5. Concepts are not well understood by those entering the information
6. Adjustments in the OEE Losses Tree are made at the end of the month – minor stops/start-up and ramp-down

Solution

Implement an OEE System

• Semi-automatic
  • The system records downtime automatically
  • Operator records reasons for each downtime
• Manual
  • Operator records downtime using downtime sheet
  • Analyst enters all downtime into the system

Let’s look at the main losses definitions and clarify them:

• Breakdown
• Cutting blade change
• Minor Stoppages
• Speed Defects and Rework
• Shutdown
• Logistic

Breakdown

Description:

Unplanned Stoppages >10 min. Reasons:

• Breakage with substitution of component
• Breakage without substitution of component (Failure or loss of function)

Clarifications:

• The breakdown will impact the production line OEE during the week in accordance with the line production scheduling, if the break still continues to the next week it will be considered as Shutdown loss. It does not matter whether the crew is reallocated to another production line.
• Any unexpected stoppage to adjust the machine that has a clear proposal to avoid quality defects will be considered as measurement & Adjustment.
• Delays provoked by planned maintenance activities, have to be considered as Management loss, not a breakdown.

Cutting Blade Change

Description:

Loss because of substitution of tools at the end of the useful life (normal wear) or of raw materials during the production process.

Clarifications:

• The change of material supply (installing new roll on packaging machine) will be considered in this loss.
• The change of routines tools (knives, sealing element, etc) will be considered in this loss.
• The change of machine components such as rollers bands, flux meters, valves, that take> 10 min will be classified as a breakdown, and ≤ then 10 min will be classified as a chokotei (minor stop). It does not matter whether the component achieved or not the cycle life.

Minor Stops (Chokotei)

Description:

Unplanned Stoppages ≤ 10 min.

Clarifications:

• Any unplanned stoppage that takes ≤ 10 min, except if the stoppage and the action were to prevent quality defect. In this case, the loss has to be classified as measurements and adjustments.
• Any other stoppages ≤ 10 min will be considered as “chokotei”.

Speed

Description:

Loss of Speed (measured in time) of a line running at a speed that is slower than the design speed to produce one unit of the product (the machine reference has to be the filler or the machine bottleneck in the packaging line).

Clarifications:

• We have to consider speed reduction when the machine runs below the design speed, however, if the machine never achieved the design speed since the beginning of commissioning, it may be adjusted in accordance with previous corporate approval.
• We have to consider the speed of the equipment bottleneck of the production line if the line has more than one piece of equipment.
• For innovation projects, the speed for reference needs to be agreed with corporate engineering.
• Just in case of old equipment and in situations that do not exist clear documentation to define the speed to be used as a reference in this case the speed reference has to be the historical speed for production.

Defects and Rework

Description:

Lost time in the production due to quality problems in the packaging materials or the time for a reworking of non-conforming products (stop the production to do rework).

Clarifications:

• The stoppage because of a quality material defect will impact from the beginning of the stoppage to the end of it, no more than the time considered in accordance with the weekly line scheduling plan. It does not matter whether the production crew is relocated to other production lines.
• The time lost due to union excess in films has to be classified as measurements and adjustments.
• The speed reduction due to quality defects of material has to be classified as speed loss.
• The breakdown provoked by quality material defect has to be classified as breakdown loss.

Shutdown

Description:

This loss refers to the programmed stop caused by equipment stops agreed and considered in the line scheduling program.

Clarifications:

• Stoppage due to lack of warehouse capacity because of inappropriate planning assumption or specific production planning in a short time has to be classified as Logistic loss.
• Lack of capacity due to unbalanced process and packing area have to be classified as Logistic loss if this loss was analyzed by the business and considered that the ROI to solve that is not enough it can be classified as Shutdown.
• Changeover can be performed in parallel with planned maintenance. If the C/O time exceeds the time planned to have the line stopped this extra time has to be classified as C/O Loss if the planned maintenance activity takes more time than planned it has to impact Management loss.
• The decision to move the production crew from one line to another agreed with the planning department will be considered shutdown in the original line for the rest of the planning production schedule.
• Simulation or real nature events (earthquakes, snowstorms, or similar) will be considered shutdown. • Planned cleaning for tagging purposes will be considered shutdown.
• CIPs:
  • CIP performed during C/O is considered as part of the C/O activities;
  • CIP performed after “X” hours of production to prevent contamination issues, has to be classified as Measurement and Adjustments;
  • If the plant does not run 24/7, the CIP at the beginning and end of the week has to be classified as shutdown.

Logistics

Description:

Lost time because of inefficient delivery of packaging materials (it is in the factory but we have some delays to delivery for the line ), lack of products of the previous process for the line, or removal of final products off the line.

Clarification:

• All-time that the packaging line is stopped because of lack of product from the previous process, this time has to be classified as Logistic loss, independent of the reason that has happened in the previous process.
• In order to classify the losses in the Process area is recommended to use the same 13 losses structured that have been applied in the packaging area.

Table of all Losses

1	Equipment Breakdown	Unexpected equipment stoppage greater than 10 minutes due to equipment-related issue regardless of whether or not spare parts have been used.	1	Mechanical Breakdown	Unexpected equipment stoppage greater than 10 minutes due to mechanical issue regardless of whether or not spare parts have been used.
			2	Electrical Breakdown	Unexpected equipment stoppage greater than 10 minutes due to electrical/PLC-related issue regardless of whether or not spare parts have been used.
2	Changeovers	Total time is taken (including adjustments ) to change over from the last product of one run at nominal speed and quality, until the first product of the next run at nominal speed and quality.	3	Changeovers	Total time taken (including adjustments ) to changeover from last product of one run at nominal speed and quality, until the first product of the next run at nominal speed and quality.
3	Cutting blade changes	Line stoppage for changing items such as cutting blades that have worn out.	4	Foil and/or cutting blade change.	Line stoppage for changing items such as cutting blades that have worn out or foil that has run out.
4	Start-up / Ramp Down	Total time spent to prepare the line for start-up or shut down	5	Start-Up	Total time taken (including adjustments) to prepare the line and achieve nominal speed and quality. Note: does not include time spent to prepare processing areas
			6	Ramp-Down	Time spent to clean up the line in order to shut down and establish appropriate conditions for effective start up.
5	Minor Stoppages	Any unexpected equipment stoppage less than 10 minutes	7	Minor Stoppages	Any unexpected equipment stoppage less than or equal to 10 minutes
6	Speed	Speed loss (measured in time) due to running line at a speed less than the standard cycle time for a particular product/pack.	8	Speed Loss	Speed loss (measured in time) due to running line at a speed less than the standard cycle time for a particular product / pack.
7	Defects & Rework	Time lost in producing non-conforming products and time to rework non-conforming products online (i.e. slowing down or stopping line for rework).	9	Product / Raw Material Defects	Time lost due to non-conforming ingredients, mix or finished goods.
			10	Packaging Material Defects	Time lost due to non-conforming packaging material (pouches, cartons, shippers, pallets, etc).
			11	Rework	Time lost (or # of units) due to reworking non-conforming product at the line.
8	Shutdown Losses	Shutdown Loss is caused by stopping the equipment for periodical maintenance/ inspection and for scheduled shutdown for legal inspection during the production stage. This also considers unavailable time (e.g. holidays/weekends), available unused time…	12	Holidays and Weekends	Saturdays, Sundays and holidays
			13	No Production Orders	No demand for products by the planning area
			14	Planned Maintenance	Scheduled maintenance planned during the previous week of production (agreed with planning)
			15	Planned Lubrication	Scheduled time for machine lubrication
			16	Planned Trials and Tests	Scheduled trials, commissioning and tests planned during the previous week of production (agreed with planning)
			17	Planned Training and Meetings	Scheduled trainings and meetings planned during the previous week of production (agreed with planning)
			18	Known Shortage of Operators	Known shortage of operators during the previous week of production (planning is aware of shortage)
			19	Moving Teams to Other Activities	Scheduled safety drills, inventory activities, medical exams planned during the previous week of production (agreed with planning). This includes weather and other unexpected emergencies (eg. lack of trailers due to weather conditions)
			20	External Shortage of Utilities	External shortage of water, electricity, gas, SAP, etc
			21	Known Shortage of Spare Parts	Scheduled packaging line downtime due to a known shortage of spare parts during the previous week of production (planning is aware)
			22	Planned Sanitation and Cleaning	Scheduled sanitation, cleaning, fumigation, etc planned during the previous week of production (agreed with planning)
			23	Known Lack of Materials	Lack of materials on the site previously known when preparing the plan during the previous week (the line was planned down).
9	Management	These are the waiting time losses generated by management problems, such as failure to provide materials, spare parts, utilities, waiting instructions, etc.	24	Unplanned Maintenance	Time lost due to repairs not planned more than 24 hours in advance. In this case the OEE shall be impacted for the current shift plus the following shift.
			25	Utilities Problems	Time lost due to internal utilities problems such as steam, electricity, air compressor, water, etc.
			26	Accidents	Time lost due to accidents with people, equipment or material.
			27	Waiting for Instructions	Time lost due to a lack of instruction to start the production
			28	Failure to Plan Materials	Time lost due to inventory discrepancies, planning errors, excessive consumption or losses at the line and supplier failures. The OEE shall be impacted up to the end of the current shift.
10	Operational Motion	This includes losses created as a result of difference in skill levels and losses attributable to inefficient layout e.g. walking losses.	29	Operational Failures	Time lost due to operational failures and mistakes, or differences in skill levels
11	Line Organization	Losses resulting from the shortage of operators on the line e.g. meal breaks and having to work on more equipment than was originally planned.	30	No Relief	Time lost due to no relief for meal breaks.
			31	Unexpected Lack of Operators	Time lost due to unexpected lack of operators.
12	Logistics	Time wasted in inefficient delivery of raw, packing materials, product, etc. to the line and removal of finished product from the line.	32	Lack of Product from the Processing Area	Time lost due to lack of product from the Processing Area
			33	Internal Lack of Materials	Time lost due to failure to provide materials from the warehouse to the line (due to lack of communication between operators and warehouse)
			34	Unable to Remove Finished Goods	Time lost due to inability to store finished goods (lack of trailers; warehouse full; etc.)
13	Measurement & Adjustment	Stoppages related to measurement and adjustment in the machine to avoid the recurrence of quality defects.	35	Additional Cleaning	Any additional cleaning other than for start-up, ramp-down, or changeovers. (Independent of time)
			36	Quality Adjustment	Any measurements and adjustments greater than 10 minutes due to quality defects