Illustration:

Capacity Utilisation calculations

Time losses
TOTAL TIME
TOP DOWN

AVAILABLE TIME

AVAILABLE LOADING TIME

Unutilised Legal
LOADING TIME Capacity losses
losses
Idle
BOTTOM UP

(except
OPERATING TIME Process Time Idle Time)
Driven
Manufacturing
VALUE OPERATING TIME Performance losses
losses

OEE calculations

Notes This Time Classification is valid for calculations at annual, quarterly, monthly, weekly, daily and
shift level. Only the duration of total time and the losses will change as the time frame varies.

Formula Total Time (TT): The absolute number of hours available in a year of 365 days except for leap
years (366 days per year)
days hours
Total Time (TT) = 365 year x 24 day = 8,760 h

Formula Available Time (AT): The maximum time for which Unilever could utilise the Line for
production during the Total Time. This excludes only the time for which Unilever has no
control (Legal losses). This time is highly relevant for Capital Expenditure decisions. Since
Unutilised Capacity losses can be reduced over a few months, the Available Time represents
time considered as available over the long term. Refer to the Capacity definition, section
8.18, for further details.
Available Time (AT) = TT - legal losses
Formula Available Loading Time (ALT): The maximum time for which Unilever could utilise the Line
for production over the short term. This time is used by the production planner for preparing
weekly production plans. Since Manufacturing Performance and Process Driven losses can
be reduced in a few weeks, Available Loading Time represents time considered as utilisable
for production in the short term. Refer to Capacity definition, section 8.18, for further details.
Available Loading Time (ALT)
= AT - Unutilised Capacity losses (except Idle Time)

Formula Value Operating Time (VOT): The minimum amount of time that will be consumed by the Line
for a given Production Plan under ideal conditions (operating at Nominal Speed and without
any loss of any kind). It is calculated as:
Good Volume
Value Operating Time (VOT) =
Nominal Speed

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Definition Shared Performance (SP): This is a measure of Process Driven losses, and is shared among
Manufacturing, Planning, Maintenance, Technology Innovation, etc.

Operating Time
Formula Shared Performance (SP) =
Loading Time

Notes 1. In theory, a calculation of OEE can be made by multiplying MP and SP together.

VOT OT VOT
Overall Equipment Effectiveness (OEE) = MP X SP = X =
OT LT OT
2. The MP of the previous year can be used to estimate the MP of following year, by ‘risk and
time weighing’ focused improvement estimates into the historical MP.

3. The SP of the following year can be estimated by first estimating Process Driven losses
for the business plan volumes of the following year. Then add these losses to the
estimated OT from note 2 to estimate LT.

4. Aggregation method of OEE and all Line Performance Measures should be based on
Machine hours, not Volume.

Σ VOTlines
OEE Factory =
Σ LTlines

8.17.3 MANAGING MANUFACTURING PERFORMANCE & TIME LOSSES

Introduction Each of the WCM (World Class Manufacturing) defined losses is part of one (and only one) of
the Time Classification Cases below. Both WCM and Managing Manufacturing Performance
losses are shown here. The two illustrations describe precisely the same set of losses.

Illustration A: Past / Current MMP Code Loss

Managing Legal Restriction Legal losses 1. External/ Legal (Holidays & Maintenance)
Manufacturing 2. Bank Holidays
Performance 3. Shift Pattern
Time Losses Unutilised 4. Idle Time
Shutdown 5. Planned Stoppage Time
Capacity losses
6. Shortage of Utility (Force Majeure)
7. Equipment/ Process Trial & Scheduled Modification Time

8. Maintenance Time
9. Meal/ Tea Break
Process Driven 10. Cleaning & Sanitation time
losses 11. Changeover time
12. Preparatory & close out time losses (previously start up & ramp down)
Availability
13. Breakdown & equipment failure time
14. Process failure time
15. Shortage of operators (previously line organisation)
16. Material availability at line side loss (previously logistics loss)
17. Cutting blade change
Manufacturing
Performance 18. Minor stoppage & idling losses (abnormal operation of sensors,
Performance losses blockage of work on chutes, etc)
19. Speed loss

20. Quality defect time loss

Quality
21. Measurement & adjustment

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 # Loss Loss Reason # Loss Loss Reason
Illustration B: Weekends Cleaning & Sanitation
3 Shift Pattern 10 Routine cleaning
Reason to Time

Loss map 4 Idle Time No Production Orders 10

Cleaning & Sanitation
Unexpected sanitization
Time

Known Bottleneck in
4 Idle Time 11 Changeover Time Format changeover
processing area

4 Idle Time Failure to plan the line 11 Changeover Time Product changeover

Breakdown & Known lack of spare parts

5 Planned Stoppage Time Moving teams to other lines 13
equipment failure time (if occurs during breakdown)

Breakdown & Failure to provide spare parts

5 Planned Stoppage Time Planned trainings 13
equipment failure time (if occurs during breakdown)

5 Planned Stoppage Time Planned meetings 14 Process failure time Utility problem

Shortage of operators
Moving teams to activities out
5 Planned Stoppage Time 15 (previously line Accidents
of line
organisation)
Shortage of operators
5 Planned Stoppage Time Known shortage of operators 15 (previously line Unexpected lack of operators
organisation)
Material availability at
Shortage of Utility Lack of raw or packaging
6 Shortage of utilities 16 line side loss
(Force Majeure) materials in the site
(previously logistic loss)
Equipment / Process Material availability at
Lack of raw or packaging
7 Trial & Scheduled Planned modifications 16 line side loss
materials on the line
Modification Time (previously logistic loss)
Equipment / Process Material availability at
Failure to provide raw or
7 Trial & Scheduled Planned trials 16 line side loss
packaging materials
Modification Time (previously logistic loss)
Equipment / Process Material availability at
Lack of product from
7 Trial & Scheduled Scheduled modifications 16 line side loss
processing area
Modification Time (previously logistic loss)

8 Maintenance Time Planned maintenance 17 Cutting blade change Routine activities

Minor stoppage & idling

8 Maintenance Time Planned lubrication 18 Minor stoppages
losses

Failure to provide spare parts

8 Maintenance Time (if occurs during 20 Quality defect time loss Quality problem with product
maintenance)

Cleaning & Sanitation Planned sanitization Quality problem with

10 20 Quality defect time loss
Time packaging

Cleaning & Sanitation

10 Planned cleaning 20 Quality defect time loss Rework
Time

Cleaning & Sanitation Measurement &

10 Routine sanitization 21 Machine adjustment
Time adjustment

Notes Please refer to the Appendix 16.5 for all losses and their description.

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