Overall Equipment Effectiveness OEE and the 6 Big Losses
Lean Manufacturing Tools and Techniques
Equipment Effectiveness OEE and the 6 Big Losses
Overall Equipment Effectiveness
OEE is a method of measuring key aspects of production, and then working
towards improvements based on information and data. For small manufacturers OEE
may initially seem complicated, but it need not be. OEE involves some calculations
and can be undertaken by hand or with automated systems. Monitoring equipment
and process performance is a part of OEE. A core aim is to improve production
by reducing downtime, increasing speed and reducing defects. OEE data is
sometimes displayed next to key machines, illustrating their productivity over
time. Feel free to research more to increase your OEE knowledge, together with
tips for application in the workplace.
How to Calculate Overall Equipment Effectiveness OEE
(Courtesy of Advanced Industrial Equipment)
The 6 Big Losses
The 6 Big Losses are the
major causes of shortfall in manufacturing and as such are central to Overall Equipment Effectiveness OEE. They
are related to the 7 Wastes. Being aware of the 6 big losses, enables employees
to spot them and either eliminate or minimise them. They are:
These are classed as a
downtime loss. Typically they occur when an unplanned activity halts
production, such as something breaking, equipment failing or emergency
Setup and Adjustments
This too is categorised as a
downtime loss. What happens here is productivity slows or stops as alterations
take place in preparation for a change in production. Examples include tooling,
die or equipment changes, as well as waiting for materials, parts or people.
This is a speed loss that
occurs for a short duration. Examples include blockages, jams, cleaning and
Again, this is classed as a
speed loss. The issue here is equipment not running as fast as it can for some
reason. Causes include poor maintenance, wear and tear and poor settings.
This is categorised as a
quality loss. At the start of a production run, typically there is waste as
parts may be defective in some way.
This too is classed as a
quality loss. It includes the defective work that has to be scrapped during a
Considerations for TPM
- Do some research and get critical staff trained in TPM. Make it clear what you
expect employees to do – then employ them to get on and do it. Raise TPM
awareness by talking about it in meetings, listing it in job descriptions
and including it in appraisals.
- Consider TPM on a pilot
project. Is there an
area where you can gain some quick wins – some ‘low hanging fruit’ that
can be completed speedily and so demonstrate tangible benefits?
- Look for the bottlenecks – the hold ups that
are most disruptive to the smooth flow you are striving for. Apply TPM
- Use the typical TPM activities (Inspection, checking,
adjusting, lubricating, vibration detection and replacing parts) to
develop innovative TPM activities and routines.
- Employees who work with equipment should be central in the
development of any TPM process. There should also be some consultation
with the manufacturer’s recommended service and maintenance advice in
- Document TPM standards and routines. Be innovative and use photos, labelled images,
diagrams and sketches, as well as legible text.
- Position documented TPM standards and processes next to machines, in
production cells and on noticeboards in the work environment.
- Similarly, develop and use
checklists for TPM activities. Decide how frequently machinery and
equipment should be maintained and use the checklists to ensure it
- Consider 5S activities when rolling out TPM. Tasks should include
cleaning, housekeeping and orderliness. A useful activity is to take
photos before and after these events. Illustrate the contrast by
displaying these on noticeboards. Encourage debate among employees.
- Plan and put in place outsourced specialist maintenance and servicing arrangements, alongside empowered employees undertaking TPM at a local level. Emphasize the difference, so as not to undermine employee TPM initiatives. Arrangements may include annual contracts, call out arrangements, identifying contacts you will call for key equipment etc. There will be activities that require outsourced tasks such as calibration and thorough maintenance. Organize and set these activities up to take place during natural downtime. These tasks are important and preventative, as they minimize the chances of breakdown during production runs. Refer to maintenance manuals for machines and equipment when planning outsourced servicing. A coordinated scheduled approach to large scale maintenance and servicing needs to be ‘owned’ by someone or some group. Tie it into employee objectives and job roles. Review and audit to ensure it is taking place.
- A planned maintenance schedule is the perfect complement to traditional TPM. Importantly they are both preventative in their nature and they dramatically reduce the possibility of something falling between the cracks. Having an arrangement with empowered maintenance savvy employees, backed up with pre-arranged external suppliers, will enable you to handle virtually any breakdown issue very quickly. Major issues should be tackled at the root cause level, perhaps using the 5 Why’s tool.
- Keep trying and don’t give up! Embed TPM into the company culture and way of doing things. Undertake TPM continuous improvement activities. These may include enhanced and updated TPM routines and processes, as well as better timing to fit around planned production schedules. Obtain feedback from all employees involved through meetings, factory walks and suggestions. Likewise reviews and audits provide valuable information about how TPM changes are bedding in. Feed all this back into TPM improvements.
- Perhaps consider Overall Equipment Effectiveness OEE and monitoring, using a more systematic approach to TPM improvement activities.
- Celebrate TPM activities and reward teams who adhere to it! To ensure the profile of TPM remains high, enlist senior management support. Get them to lead from the front, communicate their vision and highlight how TPM (and other lean manufacturing initiatives) align to business objectives. Importantly, employees should see how their TPM activities contribute to the bigger picture.
Next... Kaizen: Continuous Improvement
Back to Lean Manufacturing Essentials
Lean Tools - Best Thing Since Sliced Bread?... Or Hugely Overated? What do You Think?...
What is your experience when applying Lean Manufacturing Tools in the workplace? Which ones have you tried and had success with?
Alternatively, which just didn't work, especially in the long term? - Share your story... and get a FREE copy of our report 'Helping You and Your Manufacturing Business Thrive'...
PS: Feel free to name-drop your firm! There's nothing wrong with a bit of free publicity!