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1、Design. Build. Ship. Service.Editor: EnglishTrainers: Owen ChenDept: IEDate: 2008.5.13 OEE Training BasicTable of Contents Introduction to Flextronics OEE Methodology What is Overall Equipment Effectiveness (OEE) Why it is important to monitor OEE Six big losses How to calculate OEE Exercises Manual

2、 OEE ReportingOEE a Deeper UnderstandingIn the perfect factory, equipment would operate 100 percent of the time at 100 percent of the designed capacity with an output that is 100 percent good. In real life, however, there are many planned and unplanned obstacles that prevent the equipment from opera

3、ting continuously. The inability of equipment to reach full productive potential comes fromthe time losses generated by downtime, speed anddefect causes. These three major category of losses are the foundation for understanding the effectiveness of the use of ourequipment. OEE (Overall Equipment Eff

4、ectiveness) is a metric used for monitoring and improvingthe efficiency of our manufacturing processes by measuring lost time and lost production. The aim of OEE is to help in the identification,classificationand systematic elimination of common sources for productivity losses. OEE measures the loss

5、es from line downtime that affect equipment Availability, speed losses which affect Performance against designed speed, and defect losses which are the result of quality problems. Fully productive time is obtained aftersubtracting the time consumed bythese lossesfrom the original scheduled productio

6、n time. Calculating the overall equipment effectiveness (OEE) rate is a crucial element of any serious commitment to reduce equipment- and process-related wastes which increase cost but add no value.OEE = Availability x Performance x QualityBy definition, OEE is the product of Availability, Performa

7、nce and Quality percentages. During a regular workday, we plan for some periods where no production activity may take place such as lunches, breaks, meetings, maintenance orother events. When theseplanned events affect equipment use, they are subtracted from the total time the factory is open forbus

8、iness resulting in planned production time. As the day continues, the equipment gets a affected by unplanned events that prevent them from being fully productive. These unplanned events are categorized into Availability, Performance and Defect losses, and each is defined by time loss events with spe

9、cific classifications. The Six Big Losses determine the category in which every event will be assigned; this helps production personnel to identify and systematically eliminate their causes.Set-Up and AdjustmentIdling andMinor StoppageReduced SpeedQuality:Defects in Process& ReworkReduced YieldEquip

10、mentFailuresEasy to measureLow impact on profitHighimpacton profits Labor Materials/spares Outside servicesMaintenance overheadEquipment Production Losses (Six Big Losses)The Six Big LossesAvailabilityThe OEE metric focusesmeasurement and improvement opportunities within the time that a factory is o

11、pen for business. This means that Availability is based on the hours that the business has estimated it needs to be opened to meet the required customer demand. Therefore, the effectiveness of the equipment use refers only tothe time within scheduled demand. Another metrics called MU will be introdu

12、ced later whichfocuses ontotal machine capacity (24 hours 7 days)against effective useAvailability requires thatproduction personnel makes a decision on how long to wait before calling a production stop event a downtime. In an ideal situation, we would want torecord causes ofdowntimeevery TAKTtime,

13、since every TAKT a unit is lost. However, in most cases, TAKT time is in seconds and recording formal information every few seconds is not practical. This makes clear the need to involve the stakeholders and decide on how many units lost should be the trigger to declare a stop event a recordable dow

14、ntime event. If the TAKT for a particular product is 60 seconds, then deciding to record downtime anytime a process stops 5 minutes or more means at least5 units lost. This also means that we would have formal data reflecting downtime events only overthe 5 minute mark, andall the events recordedwoul

15、d affectAvailability.Equipment Failures - Sudden and unexpected equipment or tool failures, or breakdowns, are an obvious cause of loss, since an equipment failure means that the machine is not producing any output.Setup and Adjustments - Most machine changeovers require some period of shutdown so t

16、hat internal toolsor product parts can be exchanged. The time between the end of production of the last good part and the end of production of the next good part is downtime. This downtime loss often includes substantial time spent making adjustments until the machine gives acceptable quality on the

17、 new part. The Availability category also includes downtime due to material shortages or other non-quality related events that cause the line to stop producing.While it should be obvious that during material shortagesthe equipment isavailable to produce, the resulting idle time due to lack of materi

18、als forces poor utilization of the equipment resource. By including material shortages as part of downtime, the OEE metric makes visible the need to resolve any materials related obstacles.PerformanceOnce the losses due to downtime have been experienced, the remaining time should be fully productive

19、. This means that products should be produced at specific speeds as determined by agreed theoretical output rates. However, there are other obstacles that affect the performance rates, and they show up in many forms that require great operator involvement to overcome. In the Availability example, da

20、ta was collected only over the 5 minute mark, which means that there will not be formal data collected below 5 minutes. This makes clear the need to look at performance as an operator based improvement opportunity. They are closest to the process and can greatly help in identifying causes for poor p

21、erformance.Idling and Minor Stoppages - When a machine is not running smoothly and at a stable speed, it will lose speed and obstruct a smooth flow. The idling and stoppages in this case are caused not by technical failures, but by small problems such as parts that block sensors or get caught in chu

22、tes. Although the operator can easily correct such problems when they occur, the frequent halts can dramatically reduce the effectiveness of the equipment.Reduced Speed - Reduced speed operation refers to the difference between the actual operating speed and the equipments designed speed (also refer

23、red to as nameplate capacity). There is often a gap between what people believe is the maximum speed and the actual designed maximum speed. The goal is to eliminate the gap between the actual speed and the designed speed. Significant losses from reduced speed operation are often neglected or underes

24、timated.Quality LossesA defect loss means that the equipment is producing products that do not fully meet the specified quality characteristics.These defective products consumetime from equipment resources but are not available to the customer and will consume additional resources torework them.Scra

25、p and Rework - Loss occurs when products do not meet quality specifications, even if they can be reworked to correct the problem. The goal should be zero defects to make the product right the first time and every time.Startup Losses - Startup losses are yield losses that occur when production is not

26、 immediately stable at equipment startup, so the first products do not meet specifications. This is a latent loss, often accepted as inevitable, and it can be surprisingly large.Overall Equipment Effectiveness ElementsThe three main categories of equipment-related losses - downtime, speed loss, and

27、defect or quality loss - are also the main ingredients for determining the overall equipment effectiveness. Overall equipment effectiveness is calculated by combiningthe three factors that reflect these losses: the availability rate, the performance rate, and the quality rate: Availability Ratex Per

28、formance Ratex Quality Rate. The body of this document will provide the details behind every element.The goal of measuring OEE is to improve the effectiveness of our equipment. Since equipment effectiveness affects shop floor employees more than any other group, it isimportantthat they areinvolved i

29、n tracking OEE and in planning and implementing equipment improvements to reduce lost effectiveness.It is recommended thatoperators are involved in the data collection process. Collecting this data willteach the operator about the equipment,focus the operators attention on the lossesandgrow a feelin

30、g of ownership of the equipment The shift leader or line manager is often the one who will receive the daily operating data from the operator and process it to develop information about the OEE. Working hands on with the data willgive the leader/manager basic facts and figures on the equipment,helph

31、im or hergive appropriate feedback to the operators and others involved in equipment improvementand alsoallow the leader to keep management informed about equipment status and improvement results. What is OEE?OEEuGives operators a focus on lossesuTeaches operators how and where their machines cause

32、lossesOEEOEEuuGives operators a Gives operators a focus on lossesfocus on lossesuuTeaches operators Teaches operators how and where their how and where their machines cause machines cause losseslossesTeam ActivitiesuGive a bottom-up structure for continuous improvementuActivate shop-floor knowledgeT

33、eam ActivitiesTeam ActivitiesuuGive a bottomGive a bottom-up up structure for structure for continuous continuous improvementimprovementuuActivate shopActivate shop-floor floor knowledgeknowledgeUsing team activities to improve OEE =continuously improving equipment effectiveness!Using team activitie

34、s to improve OEE =Using team activities to improve OEE =continuously improving equipment effectiveness!continuously improving equipment effectiveness!It provides to Managers with meaningful data to make rational investment decisionsIt provides managers with meaningful data to make rational It provid

35、es managers with meaningful data to make rational investment decisionsinvestment decisionsOverall Equipment Effectiveness (OEE) is a core metric used to determine equipment availability, equipment performance and process quality.Quality MaintenanceAchieving and sustaining quality by maintaining equi

36、pment and processesNew assets meet production needs and minimize Life Cycle Costs (LCC)Early EquipmentDesign andStart upManagementAttack SixBig LossesSGA Team focuses on continuous reduction of production losses based on facts & dataSupported by:AIWsKaizenOEEPlannedMaintenanceMoving from reactive to

37、 proactive maintenanceAutonomousMaintenanceAsset focused Small group activities assumes ownership for the efficiency of their asset(s)One PlanOne TeamTPMSafety Health and EnvironmentalTraining and EducationWhere does it fit?Why Measure?Identify losses on a specific asset.Provide feedback to stakehol

38、ders involved in improvement activities, and accurately reflect the results of the improvement effort.Track facts & data to ensure root cause solutions to problems.Demonstrate improvement visually.Optimize productive capacity based upon facts & data.Use improvement resources to maximize the benefit

39、to production capacity.Enhance ability to convincingly translate improvements into the language of management ($).* What gets measured gets fixed.* If you dont know what your losses are,You cant fix themWhy Measure?Planned Production TimeActual Production TimeDowntimelossesA1P2P1Q2Q1A1/A2 x P1/P2 x

40、Q1/Q2Theoretical Output (during actual operating time)Production OutputSpeed Loss Minor StopsProduction OutputQuality OutputScrapReworkTotal Hours Available (24/7) Flextronics StandardAvailabilityRateQualityRatePerformanceRateOEE =How to calculate OEE (in a nutshell)Plant Operating Time (Open for bu

41、siness)Closed for BusinessPlannedDowntimeA2A Line, Building, or Site may be Closed for BusinessDowntime and OEELevel 1 and 2 Downtime CategoriesNote : These Standardized DT Codes are to be incorporated into FlexFlow with OEE ModuleLevel 3 and 4 Downtime CategoriesG Operator relatedThe Availability f

42、ormula takes into consideration the Unscheduled Downtime Losses, and is calculated as:Availability = Operating Time/Planned Production TimeOEE Availability FormulaThe Performance formula takes into consideration the Unscheduled Downtime Losses, and is calculated as:Performance = Actual Components Pl

43、aced / (Line Target CPH x Operating Time)Where:Actual Components Placed = # Board Type “A” x (# components on Type “A”) + # Board Type “B” x (# components on Type “B”) .nMPS =Business Segment70% of Manufacturers Catalog SpeedLine Target CPH = sum of the MPSs for all placement equipment in the line.A

44、ctual Components Placed = Total chips and ICs placed during the period . Or.MPS = Maximum Production Speed for each machine model(ONLY Basing on ChipPlacement Machines & Heads).MobileConsumer DigitalAll Others66% of Manufacturers Catalog Speed60% of Manufacturers Catalog SpeedOEE Performance Formula

45、MPS =Business Segment70% of Manufacturers Catalog SpeedMobileConsumer DigitalAll Others66% of Manufacturers Catalog Speed60% of Manufacturers Catalog SpeedSteps to Determine MPS Target :Per Line Configuration, ONLY select ChipPlacement Machines & ChipPlacement HeadsDetermine ChipPlacement Machine/He

46、ad Catalog Speed by equipment vendor / model refer to MPS tableSample Line Target (MPS) CalculationSample MPS Separate file provided for the MPS of all placement machinesThe Quality formula takes into consideration the Quality Losses, and is calculated as:Quality = Actual Good Boards at ICT / Total

47、Boards Produced or.if no ICT is in the process use the last test applicable to the product.Note: Based on site process configurationOEE Quality FormulaFlextronics OEE StrategyThe purpose of investing resources in measuring OEE is to improve equipment utilization and performance in order to reduce SM

48、T capex expenditures. The most expensive machines in the SMT line are the component placers. Therefore the component placers are the focal point of the SMT line.What does this mean? Maximum effort must be made to keep the placement machines running. The balancing of all components must be optimized

49、across placement machines. The equipment and processes before and after the placement machines must be optimized to keep the placement machines running.The Focal PointOEE is essentially the ratio of Fully Productive Time to Planned Production Time. In practice, OEE is calculated as the product of it

50、s 3 contributing factorsOEE = Availability x Performance x QualityThis type of calculation makes OEE a severe test. For example, when all 3 factors are at 90%, OEE would be 72.9%. The following table shows generally accepted World Class goals for each factorWorldwide studies show that the average OE

51、E rate in manufacturing plants is 60%World Class OEEExample OEE CalculationOEE and Machine Utilization (MU)ImplementingOEEmeans striving toward a vision of the ideal manufacturing situation, a vision that encompasseszero breakdowns,zero abnormalities andzero defects. The path to this ideal situation

52、 is a process of continuous improvement that requires the total commitment of everyone in the company, from operators to top management.The measure of whether an improvement process is succeeding often rests on the ultimate result of the process: the money it makes or loses. This seems rational, sin

53、ce making money is the ultimate goal of industry. The financial bottom line, however, provides little or no strategic or tactical information about what is actually going on within the process; thus it gives little help in focusing on the things we actually need to do to improve the process.While OE

54、E provides a good measure for how well a process or factory is utilizing the equipment within scheduled demand, it does not provide a sense for how much of the total equipment capacity it is consuming. At Flextronics, total equipment capacity is defined as 7 days/24 hours, and this clearly indicates

55、 that thebusiness goal is not to simply utilize the equipment efficiently but also to utilize it completely.Machine Utilization (MU)Actual Output / (Total Time x Line Target CPH) MU =Theoriginal statement, in the introduction, said that in the perfect factory, equipment would operate 100 percent of

56、the time at 100 percent of the designed capacity with an output that is 100 percent good. In essence, the factory goal is to ensurethat company assets are producingat a high level of performance, whilethe business (sales) aims tosell equipment capacity.Another metric that helps management understand

57、 the level of capacity consumption is Machine Utilization. MU has two significant differences from OEE. Instead of using the timethe factory opens for business according to demand as the baseline, it uses 24 hours 7 days to drive the Availability component.The other difference is that it does not in

58、clude quality to calculate the overall MU and focuseson downtime and performance losses. The objective ofMU in combination with OEE is to help management assess the need for new equipment when a factory enterscapacity restrictions to produce required customer demand.October 9, 2007.OEE Manual data c

59、ollection template user guide (V11 071009)Consolidate sites result into Region/GlobalAnalyze OEE performanceSite ASMT OperationsLead/Sup/Mgr reviewShift Activity ReportLine Conf.Actual outputRuntimeDowntimeTarget MPSICT yieldUpload to FtpServerCORP FTPSERVERCreate report, Dash boardPerformance feedb

60、ack with PDCA OEE improvement plan/actionsData entryStd templateManufacturing Performance ReviewSite BSite ZUpload to FtpServerthruOEE DATA REPORT AND FEEDBACK FLOWImportant Points About Manual OEE ReportingMPS =70% of Manufacturers Catalog SpeedMobileConsumer DigitalAll Others66% of Manufacturers C

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