1. Why Measure?

2. What Would You Do First?

3. What Would You Do First?

4. MEASURE

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

6. MEASURE Value Adding Activities

7. What is a Value Adding Activity?

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

9. What is a NON- Value Adding Activity?

10. 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.

11. Non-Value Adding Activities:

12. 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

13. 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

14. 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

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

16. How? MEASURE!

17. OEE O verall E quipment E ffectiveness

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

19. 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

20. 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

21. 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

22. 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

23. 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%

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

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

26. What about a world class company?

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

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

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

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

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

32. Two ways to Measure: Time Studies Work Sampling

33. Tools to facilitate performance measurement

34. 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

35. 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

36. Benefits EASIER DATA CAPTURE

37. Benefits NO DATA ENTRY

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

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

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

41. 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

42. www.umtplus.com More Info… 1-866-526-8040  514-526-8040