WCM

Early equipment management

(EEM)

General overview

October 2014 – Jozef Jánošík

Agenda:
❑ Introduction of EEM
❑ Purpose of EEM
❑ Vision, Needs, Objective, Targets
❑ KPIs and KAI
❑ Projects classification
❑ Seven steps of EEM

2 Názov prezentácie | Mesiac 2011 PREZNTÁCIA JE MAJETKOM EMBRACA

DÔVERNÉ INFORMÁCIE
10 Technical pilars of WCM

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 What is EEM (Early equipment management)?

EEM is 1 of 10 WCM technical pillar focused for

reduction of losses due to implementation of new
equipements and modification of existing equipment

EEM does not stand alone, but require strong

cooperation with all pillars

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 The problems we face with equipments
Problem Losses

❑Dificult to produce
Needs more manpower
❑Dificult to maintain
High maintenance cost
❑Chronic defects
High scrap/rework cost
❑Adjustement and skills are required
Higher manpower cost
❑Complex and complicated equipement
Increase equipment cost,
create more brakedowns
❑Dificult to achive high OEE quickly
Increases of TC
enough right after installation

❑Unsafe equipement Many accidents/ ergonomy

issues take place

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Purpose of EEM
-The main purpose of EEM is to assure that new equipements
which we are going to buy will follow/ respect:

1) Safety – Zero accidents

2) Quality – Zero scrap/rework
3) Minimal cost/ maximal profit – Zero losses
4) Vertical start up/lead time – Zero brakedowns
5) Reliability and maintenability – Zero brakedowns
6) Flexibility - Zero stocks
7) Operatability - Zero losses

Friendly equipement
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 Purpose of EEM
- Eliminate adjustments of design in phase of manufacturing and later.

Loger time
in early Loger time
in early
productivity improvement

stages =

Cost of modification
Posibility of quality and

minimum stages =
modification less time
cost in later in later
stages stages

Installation Trial production Initial

Planing Basic design Detailed design Manufacturing f low

Proper allocation of time/resorces in earlier stages make project better,faster and chipper

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7 steps of EEM

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EEM – project approach

Problems are
discovered
earlier

EEM FIRST
APPROACH PROJECTS
Picture: Real case of WCM company

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Vision, Needs, Objectives, Targets of EEM
Vision
It is fundamental for the plant to have productive lines easy to use and to
manage ("production - friendly") for all the operators in terms of Safety, Quality,
Cost and Maintenance.

Needs
All the lines will be conceived, designed, manufactured, installed and put in
production with the contribution of all the plant functions with the aim to intercept
as early as possible the errors and to anticipate as early as possible the
improvements.

Objectives
Reduce life cycle costs through an efficient process design using easy and low
cost solutions. Intrinsic Quality. Use lesson learned.

Targets
Specific targets for every EEM project

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KPIs & KAI
KPI
Name Unit
Productivity (cycle time) Number
Quality (FTQ) Number
Vertical Start-Up (time based on our typical investments scale) Time
Lead time of project Time

KAI
Name Unit
WCM Tools learned and used Number

People involved Number

To increase
MPinfo Number

Check list Number

To make earlier Design modification during 7 steps Number

To decrease to Design modification due to design

ZERO
Number
weaknesses after machine start-up

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Projects clasification
❑ Projects for EEM can came from:

tri x st
ma Co ment
QA oye
l
dep

Others:

trix -New product development

S ma -New business
-Strategy
- Overhaluing of machine with
improvemets
--.....

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Projects clasification
❑ Clasification of project Is done based on scale, experience & complexity

2 weeks –
1 month

1 weeks –
2 weeks

1 week

2 days

For each kind of project is defined time for vertical start up.
AA projects are the most importante.

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❑ LCC Analysis

-Equipment must be inexpensive not only in terms of initial costs (procurement

costs, fabrication costs, etc.), but also in terms of its running costs (operation
and repair expenses, etc). This brings us to the key concept of life cycle cost
(LCC).

-LCC can be described as design and fabrication costs (initial or acquisition costs)
plus the operation and maintenance costs (running or sustaining costs).

There are four main LCC design strategies, each oriented toward different
equipment characteristics or environmental conditions

(1) Minimum initial cost (IC) design

(2) Minimum running cost (RC) design
B/C
(3) IC-RC reduction design
(4) LCC design under uncertain conditions

LCC = IC (initial costs) + RC (running costs)

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❑ LCC Detailed calculation
LCC = IC (Initial Cost) + RC (Running Cost ) + Cd (Conversion / dismission) =

= IC + O (operative cost) + M (maintenance) + Cd (Conversion / dismission)

✔ IC: P + AE + I + T + C + TR ✔ M: MS + MU

P: price ✔ MS: planned maintenance: : PM + CR + FR

AE: administration + engineering
I: Installation PM : preventive maintenance
T: training CR : planned reparations***
C: conversion * FR : fixed costs
TR: transportation
✔ MU: unplanned maintenance: UB + CRAV + PY
✔ O: D+U+ CC+W+LP+SP
UB : unplanned maintenance
CRAV : unplanned reparations
D: direct labor PY : spare parts costs
U: utilities (energy, water, gas, etc…)
W: scrapped products**
LP: production losses ✔ Cd: C + D

C: conversion costs – modifications of the equipment due

to product modifications
EEM C D: dismission costs – costs due to the dismission of the
equipment (labor, material exhausting, parts
D transportation, cleaning, etc…)

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Six Steps in the basic LCC design process

Strategy for initial cost

reduction

Use de DESIGN of existing

Assembly solution on
Benchmark assembly lines

Design Standard Components

Simplified operation

Local supplier (spare parts)

Use cheaper processing

methods

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WCM - EEM – Steps requirements

July 2014 – Jozef

 7 steps of EEM Reqirements
1. 3. 4. 5. 6. Tryal 7.
2. Basic
Plan Detailed Manufactur Instalatio productio Initial
design
ing design ing n n flow

1.The results of Project team •Development of Schedule of •Planing of •Confirmation •Initial flow
marketing development 7 MP functional manufacturing instalation of equipment control
Product introduction (plan of
MP info analysis – from designs •Safety training of capacity / •Equipment
(1) Market size step 1 supplier) suppliers
•Process FMEA / performance capacity
(2) Growth rate of Logistic Study/material Technical evaluation •Checking of
the market Equipment from suppliers
•Detection of •Process
classification installation inconvenience capacity
(3) Strong areas and and stock FMEA visits during
•Layout preparation
weak areas of the manufacturing s in operation •Defective
level definition •Examination of •Installation control
company of equipement & rate
LCC analysis production •Incidental facilities maintenance
(4) The company’s Checklist evaluation •Breakdown
Rump up curve – capacity •Wiring piping •Reliability
position within the customer vs. List of documentation s
market Capacity
•Concrete Schemes,
•Education of •Maintainability •Frequent
planning of the operators
(5) Requirement for Cycle time analysis drawi •Operationabilit stoppages
development from the concept ngs •SOP preparation
Preliminary layout y •Overall
marketing result •Determination AM calendar •Autonomous
design equipment
Preliminary P-FMEA of specifications Machine maintainability effectivenes
2. Company strategies Preliminary E-FMEA •Spare part list ledge •Safety s
(1) What is the key for r
QA network/Preventive definition and •Process •Process
success? List of required training
QA matrix standardization certification certificatio
(2) Gap between the POKA YOKE Result of try out in
ideal status and the
•List of MP infos supplier
test phase n
Preliminary technical •Final technical Production
actual status MP info analysis
specification phase
(3) Product strategies specification List of modification in
Suppliers offers
(4) analysis •Final selection step 4
Manufacturing/sales List of modification in of supplier Design review
strategies
step 2
(5)Initial project
Design review
investement
(6)Project
clasification matrix
(7) Project selection,
introduction of project,
model team definition,
KPIs
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Main topic of Step 1 - Planing
1) The results of marketing Step 1
Product introduction
(1) Market size
(2) Growth rate of the market
(3) Strong areas and weak areas of the company
(4) The company’s position within the market
(5) Requirement for development from the marketing result

2) Company strategies
(1) What is the key for success?
(2) Gap between the ideal status and the actual status
(3) Product strategies
(4) Manufacturing/sales strategies
(5)Initial project investement
(6)Project clasification matrix
(7) Project selection, introduction of project, model team definition, KPIs
3) Product Investigation
(1) Feasibility study
•Division of development and design –
selection of reference process – and his
analyses (MP design)
•Resources
•Development period
(2) Suitability study

•Forecast of profit
•Comparison with the substitute plans
•The priority order of development
(3) Development plans
submitted
•Development plans submitted from the planning
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division (documentation)
Main topic of Step 2
• Project team development
• MP info analysis – from step 1
• Logistic Study/material classification
and stock level definition
• LCC analysis
• Rump up curve – customer vs.
Capacity
• Cycle time analysis
• Preliminary layout design
Step 2 • Preliminary P-FMEA
• Preliminary E-FMEA
• QA network/Preventive QA matrix
POKA YOKE
• Preliminary technical specification
• Suppliers offers analysis
• List of modification in step 2
• Design review
Main topic of Step 3

•Development of 7 MP functional designs

•Process FMEA / Equipment FMEA
•Examination of production capacity
•Concrete planning of the concept
•Determination of specifications
•Spare part list definition and
Step 3 standardization
•List of MP infos
•Final technical specification
•Final selection of supplier
Main topic of Step 4
• Project team development
• Schedule of manufacturing (plan of supplier)
• Technical evaluation from suppliers visits
during manufacturing of equipement
• Checklist evaluation
• List of documentation
• Schemes, drawings
Step 4 • AM calendar
• Machine ledger
• List of required training
• Result of try out in supplier
• MP info analysis
• List of modification in step 4
• Design review
Main topic of Step 5 - Instalation

•Planing of instalation
•Safety training of suppliers
•Checking of installation
•Layout preparation
•Installation control
•Incidental facilities Step 5
•Wiring piping
•Education of operators
•SOP preparation

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Main topic of Step 6 Trial Production
Step 6

•Confirmation of equipment capacity / performance

•Detection of inconveniences in operation &
maintenance
•Reliability
•Maintainability
•Operationability
•Autonomous maintainability
•Safety
•Process certification test phase

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Main topic of Step 7 - Initial Flow

•Initial flow control

•Equipment capacity
•Process capacity
•Defective rate
•Breakdowns
•Frequent stoppages
•Overall equipment effectiveness
•Process certification Production phase
Step 7

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 Evaluation after Initial Flow
The new equipment is evaluated from the following viewpoints:
1. number of variations which can be produced by the new line
2. set up time to change from one variation to another one
3. production capacity
4. amount of investment
5. effective lifetime of the equipment
6. OLE
7. total manpower/unit
8. amount of production in terms of money/person/year, value
added/operator
9. defective rate from the line
10. number of claims

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11. number of delivery problems
12. pay back year, cash flow
13. rate of return on investment
14. number of reduced people compared with the previous
equipment
15. amounts of resources saving
16. amount of energy saving
17. profit rate
18. primary cost rate
19. sales turnover/m2 , value added/space
20. amount of WIP in the line

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21. amount of stock of A (B) parts at the line
22. feeding interval of A (B) parts ( total number of
transportation of A (B) parts, tour time of transportation )
23.number of A (B) parts to be transported at a time
24. loading time of A (B) part (average) to the line side and
removing time of empty trays (average)
25. picking time of A (B)part (depending on the size) in the
warehouse or the store near the line
26. picking error at the picking area ,loading error to the
feeding area
27.number of human islands and automation islands
28. lead time
29. number of manning
30. cycle time

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Main Methods and tools of EEM
MP - Info

- Tool which main function is to record best practices applyed for equipment which can be
used later for next machine

Design review and checklist

- Systematic aproach for evaluation of requirements for each step of project

LCC - aproach
- Evaluation of Life cycle cost to choose best alterantive between initial cost and
running(transformation) cost

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