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Posts Tagged ‘kpi’

16 Major Losses – revisited

Tuesday, November 9th, 2010
Written By: Cordell Hensley – KCTS Consultant

The Value of Information

In a blog posted back in July we talked about why businesses should record data. “The main purpose of recording factory losses is to understand where we are losing time, speed, quality and ultimately money. This allows us to focus our (limited) resources by identifying the big problems across the manufacturing elements of our factory and profit centres”. Is that enough though? Do we always get it right?

I was recently working with a client who called us in to help them sort out their problems with machine availability. The site had a good data collection system in place (or so we thought) and their data was telling them that their biggest problem was with breakdowns. We agreed to develop an internal planned maintenance system but during the first visit, after trying to figure out their specific data recording and reporting system I realised that breakdowns were NOT their biggest problem.

The site had been recording breakdowns, changeovers, cleaning time and unplanned production, but there was no data recording for minor stoppages. Effectively the site captured the easy data, and assumed the rest of the time was productive. In fact there was a large gap between what the machines produced when they ran and what they should have produced given the amount of time that they ran.

For example, if they were supposed to produce 1000 units per hour, and only produced 800, the remaining time was unaccounted for unless there was an actual breakdown. When we dug further we found that breakdowns were not the biggest problem, minor stoppages were.

The company had losses of around 10% due to breakdowns, and over 15% due to minor stoppages. Of course we still set up their maintenance system as requested, they still wanted to reduce the 10% of downtime losses, but we also introduced an improved data collection system to capture the details of where these minor stoppages were occurring so we could begin to tackle these issues

Recording data will help you identify your losses and focus your efforts in the right area; however, this is only the case if you record the right data! Think about what information you need – does your data collection provide the right information? Is it at the right level of detail?

Data is just data until we convert it into information – but if we aren’t looking for the right information, then we won’t be recording the right data.

16 Major Losses

Thursday, July 29th, 2010

Understanding the 16 Major Losses of TPM in a Factory

The main purpose of recording factory losses is to understand where we are losing time, speed, quality and ultimately money. This allows us to focus our (limited) resources by identifying the big problems across the manufacturing elements of our factory and profit centres. Further, continuous monitoring, even when there are no problems, allows us to be in full control of the plant and to measure the effects of our improvements to quickly identify where problems are emerging. A factory’s loss system is the essential ingredient in providing “facts” for decisions in an improvement programme.

Loss collection is mainly focussed on the production, packaging and engineering facilities within a site. It attempts to capture stratified information about Quality, Performance, Maintenance and Skill issues. This is the antipathy of the Finance System, which is focussed on what we have made, whereas the Loss System measures and analyses the plant when it is not making product at the required quality and within the required time period.

There are 16 Major Losses as can be seen in the table below. Most factories that measure loss, only record a few of the losses shown on the right hand side. These are the Machine Losses and are probably the best place to start out. The left hand set of losses are much more about “People” and require a more mature attitude by both management and employees to measure them, let alone tackle them.

The Key Performance Indicator (and we stress indicator) for equipment losses is OEE (Overall Equipment Efficiency). This is the only indicator, which combines an effective measure of a site’s Availability, Performance and Quality. There are those who are sceptical of sites who claim to have greater than 80% OEE, however, OEE is really a measure of a sites progress as part of a continuous improvement programme. If we start measuring OEE at 30% and change nothing about the way we measure then if after 3 months we have achieved 40% and the other key measures have changed, e.g. increased Volume and reduced Utilisation, then as a site we have reduced our price per product. As with all KPI’s it is what is excluded rather than what is included within the measure that determines how real the measure is. The most common exclusions are time lost for Changeovers and Meetings, two of the largest losses a site may have.

 

 

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