Why Measure?

What Would You Do First?

What Would You Do First?

MEASURE

What is the first thing you do to maximize a process?

MEASURE Value Adding Activities

What is a Value Adding Activity?

Value Adding Activities: Time that is spent transforming or modifying an actual product or service that is sold

What is a NON- Value Adding Activity?

Non-Value Adding Activities: WASTE!!! Activities that take up time, resources or space without adding any value to the actual product or service that is sold.

Non-Value Adding Activities:

In an average company, how much of this time is dedicated to value added activities? 0%10%20%30%40%50%60%70%80%90%100% Total time spent on manufacturing a product or delivering a service

0%10%20%30%40%50%60%70%80%90%100% Total time spent on manufacturing a product or delivering a service Only 5% to 15% of the total time spent is on Value Adding Activities NON VALUE ADDING ACTIVITIES

What about a world class company? 0%10%20%30%40%50%60%70%80%90%100% Total time spent on manufacturing a product or delivering a service 50% VA

Time that you can optimize What does this mean? Opportunity to Improve! VANVA Average VANVA Elite

How? MEASURE!

OEE O verall E quipment E ffectiveness

Overall Equipment Effectiveness: Framework for measuring the efficiency and effectiveness of a process, by breaking it down into three factors: Availability Performance Quality

Possible Availability of Equipment = 100 hours 0 20hrs 40 hrs60hrs 80hrs 100 hrs 20 hrs/day 5 days/week CYCLE : 1 week Overall Equipment Efficiency

Possible Availability of Equipment = 100 hours 0 20hrs 40 hrs60hrs 80hrs 100 hrs Availability OEE: Availability Availability = 80% 80 functioning hours / 100 available hours = 80% Down Time Non Value Added Down Time Loss:  Break Downs  Setup and Adjustments  Small Stops

Performance = 75% 80 hours x 75% = 60 hours Possible Availability of Equipment = 100 hours 0 20hrs 40 hrs60hrs 80hrs 100 hrs Performance OEE: Performance Availability = 80% Down Time Non Value Added Speed Loss:  Machine Wear  Misfeeds  Operator inefficiency Speed Loss Actual Run Rate: 375 pieces/hour Ideal Run Rate: 500 pieces/hour

Quality = 95% 60 hours x 95% = 57 hours Performance = 75% Possible Availability of Equipment = 100 hours 0 20hrs 40 hrs60hrs 80hrs 100 hrs Quality OEE: Quality Availability = 80% Down Time Non Value Added Quality Loss: Rejected Products Speed Loss R Reject

Quality = 95% Performance = 75% Possible Availability of Equipment = 100 hours 0 20hrs 40 hrs60hrs 80hrs 100 hrs OEE: Percentage Availability = 80% Down Time Non Value Added Speed Loss R Reject 57% OEE = 80% X 75% X 95% = 57%

In an average company, What OEE percentage do you think they have?

In an average company the OEE percentage is just: 20% - 50%

What about a world class company?

World Class Companies OEE= 85% Availability = 95% Performance = 95% Quality = 95%

Case Study Machine works 24 / 7 Does not produce enough to meet customer demands PROBLEM:

Case Study Buy a new machine for $2.5 million? SOLUTION:

Case Study SOLUTION: MEASURE! Determine where they are losing time. How? OEE Inspector

Can now meet customer demands RESULT: Case Study Machine only needs to work 2 shifts/ day, 5 days a week Improved Production Time

Two ways to Measure: Time Studies Work Sampling

Tools to facilitate performance measurement

Case Study GOAL: To double the amount of trucks produced in a day. CHALLENGE: Make improvements to optimize the production line. SOLUTION: Accurately measure the amount of time being spent on non-value adding tasks at each assembly station using PDAs. RESULTS: Using PDAs for Work measurement proved to be:  Less intimidating than stop watches  Provided more accurate results in less amount of time

Case Study GOAL: To save time and streamline processes in department stores. CHALLENGE: Recruit 90 people in three locations to perform work measurement studies. SOLUTION: Use PDAs to collect all the data and then easily download for integrated analysis. RESULTS: Using PDAs for Work measurement made it possible to:  train 90 people to perform work measurement studies in half an hour  collect all the needed data, and get a report in just days...  see results 85% faster than when using a stopwatch

Benefits EASIER DATA CAPTURE

Benefits NO DATA ENTRY

Benefits INSTANT STATS Statistical Analysis Program included No more data base configuring

Benefits IMPLEMENT YOUR SOLUTIONS FASTER Using UmtPlus™ can be up to 85% faster than using a stopwatch.

Easily Capture Data UmtPlus™: Create, Edit and Manage Configurations UmtManager: Review and analyze data instantly StatUmt:

Cost of Ownership Save all of the money currently spent on data entry Increase the time YOU spend on value-adding work Save time by not having to manipulate data for reports Benefit by implementing your solutions faster Improve data accuracy

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