Lean Six Sigma

Topic - Lean Metrics:

OEE Calculation- Part 2

Prof Yogesh Brahmankar

SIBM Pune
 OEE Calculation

▪ OEE = Overall Equipment Effectiveness

▪ OEE = Availability x Performance x Quality = A X P x Q

▪ OEE is accurate representation of how effectively our manufacturing process is

running. And, it makes it easy to track improvements in that process over time

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 How OEE gets affected adversely

• Set up and Adjustments

• Planned Breaks, Down Time
Availability

• Small Stoppages
• Reduced Speed
Performance

• In Process Rejection
• Startup Rejects
Quality
 OEE, Six Big Losses and TEEP

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 TEEP & OEE

▪ TEEP = Total Equipment Effective Performance

▪ TEEP takes care of – Plant Closed , Production not scheduled

▪ Utilization = Production Time / All time

▪ TEEP = OEE x Utilization

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 TEEP Calculation

e.g. Factory Runs for 2 shifts of 9 hrs each and OEE is 90 %.

Planned breaks = 60 min per shift and 45 min breakdown per day.

Utilization = Production Time/ Total Avl. Time

= Run Time / Total Avl. Time
= 15.25 hrs/ 24 hrs
= 63.54
TEEP = 0.6354 x .90 = 57 %
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 Hidden Factory

▪ The term “hidden factory” was popularized by Armand Feigenbaum in

the late 1970’s

▪ The hidden factory represents the untapped capacity of your manufacturing

plant – the maximum amount of additional production that can be unlocked
without capital investment.

▪ Fully utilizing your hidden factory means all time perfect production –
manufacturing only good quality products, as fast as possible, with no
downtime, every hour of every day.

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 Why to utilize Hidden Factory

▪ Decreased mfg. Cost- Fixed Costs spread over more output

▪ Increased Flexibility of Operations- Shorter Production Runs
▪ Increased Productivity with same Capital Investments
▪ Eliminate Wastages like Overtime, Outsourcing, etc
▪ Improved Capacity Planning

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 Reducing Losses / Utilizing Hidden Factory

TPM is the best way to reduce losses

▪ Autonomous maintenance (proactive maintenance by operators)
▪ Preventive maintenance (proactive maintenance by maintenance
personnel)

▪ Standardized work (Following best practices)

▪ Error proofing (quality by design) / Poka Yoke
▪ Training (enhancing staff capability)/ Team Work / Culture

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 Reducing waste with simple Preventive approach

5 S and TPM Focuses on Housekeeping, Prevention of losses

Base of TPM is 5S
Seiro – Sorting
Seiton – Setting in Order
Sesio – Shining
Seiketsu – Standardize
Shitsuke – Sustain

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Next Session…..

Lean Principles and Lean Approach……..

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TEEP Should be at Tipping Point……………

Thank you !

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