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Overall Equipment Efficiency A Case Study at Bottling Plant
Overall Equipment Efficiency A Case Study at Bottling Plant
INSTITUTE OF ENGINEERING
CAMPUS
Prepared by
A SEMINAR PAPER
ii
UNIVERSITY
INSTITUTE OF ENGINEERING
CAMPUS
DEPARTMENT OF INDUSTRIAL ENGINEERING
Prepared by:
The facts and ideas presented in this paper are an outcome of the student
hard work and dedication to the seminar paper, undertaken as a partial
fulfillment for requirements for degree of
_____________________ _____________________
Internal Supervisor External Supervisor
……………………
_____________________
Head of Department
iii
Abstract
iv
Acknowledgement
v
Table of Contents
Copyright ............................................................................................................................. .. ii
Abstract ............................................................................................................................. ..... iv
Acknowledgement .................................................................................................................. v
List of Figures ........................................................................................................................ ix
List of Equations ..................................................................................................................... x
Abbreviations ......................................................................................................................... xi
Chapter One: Introduction ..................................................................................................... 1
1.1. Background .............................................................................................................. 1
1.2. Statement of problem ............................................................................................... 2
1.3. Objectives ................................................................................................................. 2
1.3.1. General objectives ............................................................................................. 2
1.3.2. Specific Objective ............................................................................................. 2
1.4. Details of seminar .................................................................................................... 2
Chapter Two: Literature review ............................................................................................. 3
2.1. Constituents of OEE ................................................................................................. 3
2.2. Six big losses ............................................................................................................ 4
2.2.1. Breakdown losses ............................................................................................. 4
2.2.2. Setup and adjustment ........................................................................................ 4
2.2.3. Small stop ......................................................................................................... 4
2.2.4. Reduced speed .................................................................................................. 4
2.2.5. Start-up reject .................................................................................................... 4
2.2.6. Quality defect rework losses ............................................................................. 5
2.3. Calculating OEE ....................................................................................................... 5
2.3.1. Using Equations ................................................................................................ 5
2.4. World Class OEE ..................................................................................................... 6
2.5. Benefits of OEE ....................................................................................................... 7
Chapter Three: Research Methodology ....................................................... .......................... 8
3.1. Primary Source ......................................................................................................... 8
Chapter Four: Results and Discussion .................................................................................... 9
4.1. Results ...................................................................................................................... 9
4.1.1. Analysis of OEE ............................................................................................... 9
4.2. Discussion .............................................................................................................. 12
Chapter Five Conclusion and recommendation ................................................................... 17
5.1. Conclusion.............................................................................................................. 18
vi
5.2. Recommendation ....................................................................................................18
References .............................................................................................................................18
ANNEXES ............................................................................................................................19
Annex A : Daily record sheet of GRB 400 line ................................................................19
Annex B: Single day log sheet of filler of GRB 400 line .................................................20
Annex C: Single day sheet of bottle rejection record of GRB 400 line ............................21
Annex D: Data collection sheet for OEE calculation of filler line ...................................22
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List of tables
Table 2.1 OEE elements .........................................................................................................4
Table 2.2 World Class OEE ....................................................................................................7
Table 4.1 : Data collection to calculate OEE of a line ............................................................9
Table 4.2 : OEE calculation of a line ......................................................................................9
Table 4.4 OEE calculation for filler ......................................................................................11
Table 4.5 Table to show possible causes of filler problems .................................................11
viii
List of Figures
Figure 3. 1 Pie chart to show breakdown hrs in different section of a GRB 400 line ..........10
Figure 3. 2 Pareto chart to show problem-causing event ......................................................12
Figure 3. 3 Pie Chart to show bottle rejection ......................................................................14
Figure 3. 4 Fish bone diagram to find out causes of bottle bursting .....................................15
Figure 3. 5 Fish Bone diagram showing causes of low fill...................................................16
ix
List of Equations
x
Abbreviations
xi
1. Chapter One:
Introduction
1.1. Background
In the face of current global competition and increasing demand, the requirement to
improve manufacturing performance is obvious a greater challenge and opportunity to
increase effectiveness of manufacturing process. Overall Equipment Effectiveness (OEE) is
one of the best practical way to monitor and improve the manufacturing process (i.e.
machines, manufacturing cells,assembly lines etc.). It is simple and practical.
The concept of Overall Equipment Effectiveness (OEE) was first written about in 1989 from a
book called TPM Development Program: Implementing Total Productive Maintenance edited
by Seiichi Nakajima from the Japan Institute of Plant Maintenance. This was translated from
the Japanese book TPM tenkai published in 1982 (Kennedy, 2018).
Before OEE, people monitored equipment performance through Availability or Downtime.
This was fine until it was realized that one could have the same downtime for the same
piece of equipment over different timeframes yet get different output.
For example, if a line’s performance is measured over 100 hours and during this time it has
one breakdown for 10 hours, Availability will be 90% and Downtime will be 10%. If the
same line over another 100 hours had10,breakdowns of 1-hour duration (total of 10 hours),
then Availability would still be 90% and Downtime would be 10%.
However, when comparing output, in the majority of cases, the fist situation of only one
breakdown will produce significantly more output than the situation of 10 breakdowns. The
logic is quite simple. Every time your plant stops unexpectedly, there is a high probability
you will have some form of quality loss such as scrap or rework. Also, when you start back
up again, there is a high probability that there will be a speed loss as you ramp the plant
back up to full speed.
Hence, there was a need to create a measure that would reflect all losses that can affect the
capacity to produce perfect, or within-specification, output first up. Ideally, the measure
could also be used for prioritizing improvement activities while bringingeveryone together
to improve, as everyone would benefit from its improvement. According to Nakajima,
effectiveness can be measured as:
Overall Equipment Effectiveness(OEE) = Availability * Performance rate * quality rate
Six losses affecting OEE are:
Affecting availability:
Breakdown losses
Setup and adjustment losses
Affecting Performance rate:
Idling and minor stoppage losses
Reduced speed losses
1
In recent days including all the above losses another loss called Planned Down time loss is
included giving overall seven losses. It falls under availability and try to captures all
possible losses such as regular maintenance period, meal break, start of new shift etc.
1.3. Objectives
1.3.1. General objectives
To study on the improvement area for enhancing OEE
This paper is the case study conducted on the production line of a Varun Beverage Nepal
Private Limited during the OJT period of three months. Based on the data collection of 10
days of a production line (namely called GRB 400 line) to calculate the OEE of the same
line. Further being more specific, OEE of filler is calculated to figure out all the losses.
2
2. Chapter Two:
Literature review
In the manufacturing industry, product quality has become a key factor in determining a
firm’s success or a failure in a global market place. The product quality and attributes
increasingly depend upon the organisation’s competencies regarding an effort made for
improving productivity (Kaur, Singh, Ahuja, & Singh, 2015), and continuous process
improvement is essential to achieve the same.
Overall equipment effectiveness (OEE) is a quantitative metric that has been increasingly
used in manufactory systems for controlling and monitoring the productivity of production
equipment, and as an indicator and driver of process and performance improvements. The
OEE is a key performance measure in mass-production environments that consists of three
important components, which are availability, productivity and quality. OEE is a simple
and clear overall metric and managers appreciate such an aggregated metric instead of
many detailed metrics. This metric has become widely accepted as a quantitative tool
essential for measurement of productivity in manufacturing operations (Sammuel, 2002).
One of the major indicators for determining excellent companies is the effectiveness of
plants, and OEE is a good representative for this indicator. Using OEE indicator and
providing a regular evaluation of machineries and equipment’s performance will help any
industrial place to focus on those parameters, which are important for its success (Ericsson,
1997). OEE indicator is defined as one of the most important indicators of organisational
safety, which is used with a targeted and effective approach for improving production
processes in any organisation in the bottlenecks, crises processes. OEE indicator has
applications in the fields of monitoring and controlling machineries and processes
performance, measuring capacity, recognising bottlenecks, identifying factors limiting
operational ability, and achieving world performance level. OEE definition includes
downtime and other wastes related to production that reduce operational ability. The reason
of measuring these wastes is to find their causes and applying data to remove them
(Ljungberg, 1998). Wastes are those activities that in spite of spending resources do not
create any values and the goal of OEE is also to identify these wastes.
The most important objective of OEE is not to get an optimum measure, but to get a
Simpler measure that indicates the areas for improvement (Jonsson & Lesshammar, 1999)
Recent research (Ericsson, 1997)reports that accurate equipment effectiveness is essential
to the success and long-term effectiveness of TPM activities. TPM actions cannot be
fruitful if the reason and extent of equipment failures and reasons are not understood.
Production losses, together with other indirect and hidden costs, constitute the majority of
the total production costs .Nakajima therefore suggests that OEE is a measure that attempts
to reveal these hidden costs(Nakajami, 1998).
The parameters of OEE are availability, performance and quality and each of these
elements are concerned with losses. These losses are known as six big losses.
3
Table 2.1 OEE elements
4
2.2.6. Quality defect rework losses
Time losses due to rework, volume losses, expense losses due to product degrading, and
time losses required for corrective action are known as defect and rework losses or
production loss rejects.
The three performance aspects under which the six-big losses explained are:
Availability or availability efficiency
Availability takes into consideration any events that stop planned production for a
considerable length of time (usually several minutes – long enough to log as a
trackable event). Examples include equipment failures, material shortages, and
changeover time. Changeover time is included in OEE analysis because it is a form
of down time. While it may not be possible to avoid changeover time, in most cases
it can be reduced. The remaining available time is called operating time.
OEE can be calculated by equation method or by time loss or unit loss model.
Where All recorded down time = planned downtime + changeover or setup downtime
+ unplanned recorded downtime
Available time = total time – planned downtime
∗
Equation 2. 2
Performance rate =
5
Where the total count is the total numbers of products that are produced
Good Count
Equation 2. 3
Quality = Total Count
Where Good Count is the total product produced that meets quality standard and
total count is the total amount of products produced
Thus,
OEE = % Availability * %
Performance rate * % Quality Equation 2. 4
Total time
Value Quality
adding Time losses
(Singh, 2018)OEE is essentially the ratio of fully productive time to planned production
time. In practice, however, OEE is calculated as the product of its three contributing factors
mentioned above.
This type of calculation makes OEE a severe test. For example, if all three contributing
factors are 85.0%, the OEE would be 61.5%. In practice, the generally accepted world-class
goals for each factor are quite different from each other, as is shown in following table.
6
Table 2.2World Class OEE
Instead of making reactive maintenance decisions based on breakdown reports and product
manufacturing decisions based on plant schedules, OEE measurements enable proactive
decisions based on throughput, efficiency, effectiveness and process bottleneck constraint
analysis. Tracking OEE can help manufacturers to spot patterns and influences of
equipment problems and allows them to see the results of their improvement efforts
(Tsarouhas, 2013) OEE also captures reasons for downtime (due to machine conditions,
material status, production personnel or quality issues) and can encompass the entire plant.
At the plant level, OEE metrics can be correlated with other plant metrics to provide more
KPI‟s. With enterprise level technologies, such as Executive Dashboard, managers can
monitor OEE plant metrics and drill down to find root causes of problems, getting minute-
by-minute updates to enable real-time process improvement.
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3. Chapter Three:
Research Methodology
Since it is the case study done on production plant, data collection was done by direct
observation of all the activities and others required data are collected from workers in the
real time scenario .Some of the meansof data collection are given below:
All major breakdown during the interne time is self collected by direct
observation With the help of shift engineer.
Light inspection workers also become the source for findings data such as rejected
bottles number and cases.
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4. Chapter Four: Results and Discussion
4.1. Results
4.1.1. Analysis of OEE
Analysis was done with the help of data collected taking 10 days. Following table, provide
wholesome view of all breakdown of different section of a production line, production and
rejection.
Finally, OEE is calculated of each day.It is then taken average which results is shown
below:
To visualize the losses occurring in different section pie chart is constructed which is
shown below:
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Break down time(in hrs)
0.25
0.75
1.25
1.5
Majority of time of break down was consumed by filler. Thus, taking theobservation time
of eight hours for three days OEE of filler machine is calculated and all small factors
responsible for losses were tried to figure out.
After collecting data , OEE of filler line was calculated taking averages of three
days observation.
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Table 4.3 OEE calculation for filler
In addition, the factors responsible for causing losses were categorized and shown below:
11
100%
97%
25 93% 100%
89%
90%
80%
20 80%
70%
61%
15 60%
50%
10 34% 40%
16 30%
12
5 20%
5 10%
21 3 2 2
0 0%
Bottle Looses Bottle Bottle Crown Bottle jam Bottle
falling vent tube brust shortage path obstruted
obstructed on spiral
drive
Based on the frequency of occurrence above Pareto chart is drawn. This shows that
majority of obstruction in production was brought by bottle falling on conveyor. Similarly,
looses vent tube was also highly responsible for obstruction in production. Similarly, bottle
shortage in filling section, bottle jam in conveyor, spiral drive problems, others problems
(misalignment of vent tubes, problem with lever etc.) were also responsible for obstruction.
4.2. Discussion
The possible reasons to decrease the availability of filler machine are noted below:
Breakdown of filler valve
Looses vent tube
Problem with lever of filler
Misalignment of vent tube with bottle
Bottles get obstructed in the secondary spiral drive
The possible reasons that causes impact on the performance of filler machine are given
below:
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Unable to meet the capacity of machine. It means the actual capacity of machine is
400 Bottle per minute but it operates on 350 to 385 BPM.
Minor stoppage such as stopping the filler due to bottle falling on the conveyor.
We can see from above Pareto chart that frequency of bottle falling is very high
that is 21 times in the period of eight hrs.
The base of glass bottle due to excessive sliding lacking grip leading to slippage.
Due to lack of a sufficient SUV in conveyor.
Sudden rise of speed of a conveyor while meeting to another conveyor.
Since we have only 97.97% of quality rate. The various possible causes for not able
to reach world-class OEE i.e., 99.9% are discussed below:
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Bottle rejection
Foreign
particles, 3 Reject due
to bottle
brust, 49
Dirty, 528
Breakage
Low Fill, 1064
, 66
Uncrowned/tape
red crown, 296
The above pie chart shows the average number of bottle rejected during the period of eight
hours for along with the circumstances on which they are rejected.
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The root causes analysis is done to find out root causes of bottle bursting.
Manpower Machine
HighlySmooth
s
surface in conveyor
belt
asynchronous
Causes
Insufficent
lubrication
in conveyor Less grip
belt
sudden peer
collision
age of bottle
Disperse motion
Method Material
Similarly, the reasons behind low fill and high fill are discussed below:
The various causes behind the low fill are shown by the fish bone diagram:
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Material
Machine
Seal of filler
valve damage CO2 with some
impurities
Causes
setting filler
speed low
low filler
Setting of CO2 speed
pressure is low
low pressure
Method Manpower
Uncrown and tapered crown is mainly due to problems in crowning which are discussed
below:
Unable to lead crown from circular cavity to dye area due to obstruction in path
The main reasons behind the dirty and foreign matter in bottles are discussed below:
The main reasons for foreign matter in the bottle is solely due to negligence in light
inspection centre where due to different reasons worker pass the bottles with
foreign matters such as gutkha covers etc. Also sometimes glass pieces are seen
which is due to pieces is trapped when nearby bottle get burst.
5. Chapter Five
Conclusion and recommendation
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5.1. Conclusion
The practice of calculating efficiency and tracking down the problems, based on the record
kept by shift engineers, at VBNPL however is not sufficient to diagnose the actual problem
and eventually the improvements in the production line.It is because it can be somehow
useful to find the yield of production. However, the actual problems lying within the plant
i.e. from major problems to minor problems are always remaining hidden. Therefore
another method to evaluate the performance of the plant is requisite i.e. use of OEE.
Since ,it can be seen that majority of problems in filling line is seen by small fixing issues.
Thus if practice of recording such small issues will be also very helpful to diagnosis the
problems. Special attention also should be given to minor issues in order to enhances the
OEE.
5.2. Recommendation
Here are the recommendation regarding to improve OEE and finally the productivity, based
on the analysis of losses and their nature:
Though it seem minor to adjust loose vent tube and take few seconds but if we see
Pareto chart it is most frequent happening. Thus, it is recommendedthat to check
each valve after CIP and to check valve after bottle bursting happens.
Bottle bursting is also a major issue regarding to production aspect as well as safety
aspect. Thus, we have seen various causes of bottle bursting in fishbone diagram. If
we able to check those factor it will obvious reduced the bursting.
Low fill and high fill is one of the serious causes of bottle rejection despite of all other
factors that meet the quality. So various causes for low fill and high fill are discussed
above. If it is able to check those factors, it will obvious help to reduced problem.
Although it seems to be minor and only consume 10 to 30 sec to fix but bottle
falling frequently on the conveyor has cause great impact on speed losses. Thus, it
will be helpful if persons of inspection help to reload bottle on conveyor instead of
filler person alone. Simlarly,amount of SUV on conveyor should be frequently
not occurs due to friction. Similarly, base of
checked so that bottle falling does
bottles should be once inspected.
Lacking of bottle to fill on filler on operating time also found to make filling
machine idle. Thus, it is recommended to run bottle washer on optimum speed such
that lacking of bottle does not remain issue.
Further recommendation for future research are given below:
Since this paper after observing the OEE of whole plant become specific to filler
machine, thus research on other aspect such as bottle washer , uncaser ,case packer
cab be carried out in future research
References
18
Ericsson, J. (1997). Disruption Analysis - An Important Tool in Lean Production.
Department Of Materials Engineering.
Jonsson, P., & Lesshammar, M. (1999). Evaluation and improvement of
manufacturing performance measurement systems ‐ the role of OEE.
International Journal of Operations & Production Management, 55-78.
Kaur, M., Singh, K., Ahuja, I. S., & Singh, P. (2015). Justification of synergistic
implementation of TQM-TPM paradigms using analytical hierarchy process.
International Journal of Process Management and Benchmarking, 1-18.
Kennedy, R. K. (2018). Understanding, Measuring, and Improving Overall Equipment
Effectiveness. CRC press.
Ljungberg, Õ. (1998). Measurement of overall equipment effectiveness as a basis.
International Journal of Operations & Production Management, 495-507.
Nakajami, S. (1998). Introduction to TPM: Total Productive Maintenance. Productivity
Press.
Sammuel. (2002). Manufacturing system modeling for productivity improvement.
Journal of Manufacturing Systems.
Singh, R. K. (2018). Measurement of overall equipment effectiveness to improve
operational efficiency. Int. J. Process Management and Benchmarking, 246-261.
Tsarouhas, P. H. (2013). Evaluation of overall equipment effectiveness in the beverage
industry : a case study. International Journal of Production Research , 515-523.
ANNEXES
Annex A : Daily record sheet of GRB 400 line
19
Annex B: Single day log sheet of filler of GRB 400 line
20
Annex C: Single day sheet of bottle rejection record of GRB 400 line
21
Annex D: Data collection sheet for OEE calculation of filler line
22
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