Using XL800 for Takt Time Analysis
November 30, 2008 by david.evanson
We recently had the pleasure of meeting a team who wanted a way of preventing their Continuous Improvement Manager from spending hours with a stop watch and a unit counter on a gantry counting units on the line to identify a minor stop issue. Well….5 mins of configuration later this is the example we have created.
So - how can you use an XL800 as a portable Continuous Improvement Manager?
What we did was set the board with a desired takt time (which in this example is 1s).
We then said that:
- any cycle that’s 1s + 5% is a “slow cycle”
- any cycle that’s 1s + 25% is a “small stop”,
- anything that’s 1s + 200% is a “major stop”.
You can set these values to any numbers that you want to really tune the board to get what you want.
This then gives us the KPI screen below….which could suddenly give your Continuous Improvement Manager hours and hours of time to work on improvement projects rather than counting product!
When you decide to get an XL we can even make sure that this setup is included in your basic configuration file so you can use the system to add value straight out of the box.
Introducing automated data capture
November 30, 2008 by david.evanson
This week i’ve enjoyed many extremely interesting discussions about the use of automated data capture systems in an improvement process and thought i’d share a condensation of these discussions with you.
I think most people would agree that the reason to measure performance is so that we have hard factual data with which to make the right decisions. With this data we can be assured that we’re focussing on the right area and that our precious and limited resource is working effectively to improve output. When we’re working without data then ‘gut feel’ and assumptions can mean that we’re spending our time on areas that MAY improve output….or may not. We have limited time and resource so use it wisely.
This creates a little process for us: we need to:
- Capture data - with sufficient accuracy,
- Interpret it - with sufficient speed,
- Act on it - with sufficient focus,
- Review actions using it - with sufficient detail.
As we specialise in helping sites with the steps above we often recommend automated systems as these have the advantage of being accurate, autonomous, and needing very little time invested to get instant feedback. The higher the base level of performance, the more sophisticated a measurement tool you want.
For sites that are in an OEE performance window of 40-70% we often recommend our low cost XL800 system - for £2910 (*) a site can get great quality data and eliminate the majority of the resource needed to complete and collate machine based tick sheets. For the purpose of this post i’m ignoring the huge benefits that high performing sites could get from a line based visual display system, and instead focussing on data accuracy.
For sites performing at 60%+ we often recommend our LineView or MachineView systems as they provide highly accurate data with 6 Loss analysis and full reporting and ERP integration.
So when would we recommend that you don’t use one of our systems to capture data?
Well, in these 2 discussions i had this week both individuals wanted their organisation to develop a strong in-house feel and knowledge of OEE through collecting it manually for several months:
- When the team leaders have calculated their OEE manually for several months how aware will they be of how to influence it? Extremely!
- After a team leader has spent 30mins collecting data, running calculations, and preparing reports only to report a 30% shift how important is it that they understand how to influence it? Extremely!
- With this deep knowledge and understanding in place, how valuable will these team leaders find a fully automated system which gives them accurate data, instantly, without needing to analyse operator hand writing, without the need for a calcuator? Extremely!
My personal belief is that the only way to run a modern production line is with accurate data guiding my decision making. I also believe that data and systems are only as valuable as how they’re used.
So if you’re just starting your data journey perhaps it’s worth considering not only the value of collecting data, but also the value in your teams intrinsically understanding it from hours of painful analysis - Vs the cost saving from implementing automated systems and finding some other way of getting this deep understanding.
Food for thought.
My thanks to the Gentlemen in question with whom i had these discussions - a lot of fun and very thought provoking.
*price correct as of 30th November
Measuring OEE in the right place
November 30, 2008 by david.evanson
The Theory of Constraints (TOC):
I’ve taken this definition of TOC from Wikipedia:
“According to TOC, every organization has - at any given point in time - at least one constraint which limits the system’s performance relative to its goal (see Liebig’s law of the minimum). These constraints can be broadly classified as either an internal constraint or a market constraint. In order to manage the performance of the system, the constraint must be identified and managed correctly (according to the Five Focusing Steps below). Over time the constraint may change (e.g., because the previous constraint was managed successfully, or because of a changing environment) and the analysis starts anew.”
In a manufacturing context our role as operational managers is to identify what we ( and the business) want to achieve, identify the constraint to this, work out which measures most accurately measure our progress to this goal, and then manage that constraint accordingly.
Therefore if what you want to achieve is: “Optimise a production line to increase production output” we probably want some form of OEE or mechanical efficiency measure in our management dashboard.
If our goal is “reduce cost to produce product in an overly-capable plant” then we may want some form of cost/tonne, tonne/man-hour, or takt time/cycle time adherence metric in our management dashboard.
So let’s look at the first example and use OEE as a method of managing our constraint.
I don’t believe it’s the OEE of the constraint that you really want to know as this will just tell you what you’ve made….it won’t tell you where you need to work to improve. What you really want to know is how your losses to OEE caused the constraint to run slowly or stop.
So which part of my plant I need to get my measure from?
When you’re running individual machines it’s pretty easy to create an OEE measure for each machine. But what about if you run a series of machines connected by conveyors? Or more specially, what about getting a single OEE figure for an entire production line?
Here are a few examples of how people have measured OEE that we’ve come across over the years…and they have varying degrees of accuracy!
- Cases produced at the palletiser
- Units produced on the most expense machine
- The slowest running piece of equipment
- Raw materials consumed in the process area
- Labels applied to products
- Count at a particular machine not at the end of the line
- Averaging the OEE’s of every machine
Based on TOC the right point to have your measure is the point at which your goal is being confined. In the majority of FMCG plants that I’ve worked in with a goal if increasing output the constraint has typically been the filling machine.
So here are a few TOC questions for you:
- Do your teams know which machine or process is the real constraint to your goal?
- Are your measures targeted on this constraint (really check – I’ve visited plants in which labour is the biggest constraint only to find an OEE measure ruling the site. The outcome; few operators running few machines into the ground to get high OEE’s. Imagine now if this was an aerospace plant – surely as a potential plane passenger you’d want the primary metric to be a defect or quality metric rather than OEE!)?
- Are these measures giving you the information you need to help your teams make the right decisions to reduce loss to your goal?
Please feel free to get in contact with me if you would like to discuss this further. At OptimumFX we spend most of our time helping sites to identify the real bottlenecks to their processes, and then apply the right tools to that bottleneck to measure performance and improve decision making, We regularly help sites create manual collection processes, quick bolt on solutions such as the XL800, or fully integrated enterprise solutions such as LineView and MachineView.
Performance Management
November 24, 2008 by samirshah
The manufacturing environment is quite complex with a large number of processes involved, combined with teams of individuals, possibly across multiple shifts and different functions. To ensure that the various processes are on track, there are a number of measures applied. These are possibly reviewed at various intervals to ensure that they are on track. If management of these measures is not frequent and ongoing then there will definitely be a steady decline in results.
To effectively manage a manufacturing facility a number of different approaches can be taken. The results achieved will be proportional to three factors, namely:
- Information - that identifies current losses
- Focus - the amount of time spent understanding and formulating decisions
- Actions - that target resolution of the underlying losses
Therefore I.F. you ACT you get RESULTS whereby (Information x Focus) x Actions = Results
Regular performance management reviews (up to 24 hours) need to take place to focus on reacting to what is happening and ensuring that the team and engineers are focusing on the current biggest issues. The strategic reviews, usually weekly, are about targeting continuous and incremental improvements, identifying trends and patterns and tackling root cause and cause of cause issues.
The management of performance is reliant on good quality data to identify the greatest losses and possible solutions. The measures that enable identification of the greatest losses are:
1. Overall Equipment Effectiveness (OEE) and The Six Big Losses (Breakdowns, Planned downtime, Minor stops, Speed, Quality in process, Quality on start up)
2. Machine downtime - split down by major stops and minor stops, Mean time between failure (MTBF) and individual equipment faults
3. Waste (quality losses) by machine area
This data could be collected manually and put into Excel (or similar), however the ultimate, is to have electronically collected pinpoint accurate data that is available in real time, from each machine. This data can then be analysed and displayed on the shop floor, in team meeting rooms, in fact anywhere in the manufacturing facility. A tool that does this extremely well is the XL800 System.
Decisions and resource planning that lead to action that are based on good quality data will yield results, whereas if based on perception, there is not necessarily a link between action and performance improvement. When this approach is followed habitually, and built into the daily routine combined with utilising quality data and taking action on issues identified, resolving them in a timely way, performance maintenance and improvement is almost guaranteed.
Reflections on 2 days at WTG Conference in Rotterdam
November 18, 2008 by david.evanson
Whilst i’m sat in Rotterdam airport reflecting on 2 days at the World Trade Group 7th Annual World Food Technology and Innovation conference (http://manufacturing.foodinnovate.com/) i thought it may be worth reflecting on some of the lessons/thoughts that have come to me from the past few days.
Over the last couple of days it’s been an absolute pleasure talking to a number of Food and Drink Manufacturers’ about the issues and opportunities that exist within their European operations. Specifically a number of themes came through for me:
1. Obviously without surprise product cost is an extremely high priortity across every sector. The majority of manufacturers are experiencing some downturn in business recenly but nothing anywhere as large as that affecting our colleauges in Automotive sectors.
2. A large number of businesses have started their own internal development programmes and a lot of people are talking about ‘lean’, ‘TPM’ and ‘Toyota’.
3. When exploring these strategies it would appear that most businesses are choosing to cherry-pick particular elements of these programmes for implementation in the site, rather than wholesale adaptation and adoption. The message i got here is that “we’re not Japanese automotive manufacturers so we have to pick what works for us”.
4. There is a broad recognition that data and good quality information is key to delivering these programmes. I had great pleasure in showing our XL800 system to a number of manufacturers as a means of collecting this data.
5. A lot of suppliers are talking about Energy Sustainability, but i didn’t hear this back from many of the manufacturers.
6. In the session hosted by ATS International we had a great discussion about people involvement in change programmes. Specifically the value of creating improvement pilots and ensuring that outcomes of these programmes are communicated. We also explored how expectations need to be managed if the desired outcome is sustainable results….people can get impatient when results aren’t immediate. The key message was still - talk to your teams, get their advice, filter with data, and act act act.
7. Teams need to be motivated to improve - a real burning platform creates real results.
8. The point above really re-inforces something that one of my mentors says is the secret to manufacturing improvement: “Doing simple things to an exceptionally high level”. Whilst many sessions debated the value of various lean tools, the message for me is a clear - just decide what you’re doing and get on with it!
9. Oh and everyone is measuring OEE!
A very interesting and enjoyable 2 days. My thanks to all those i met and shared ideas with me.
Measuring OEE on a continuous flow line
November 13, 2008 by david.evanson
Something that’s often missed ouf from the standard OEE definition results in one of the questions that frequently comes up when we’re talking to new sites about OEE measurement: “Which machine do I measure my OEE from?”.
Firstly, let’s explore the real value of knowing your OEE: A lot of sites measure what they produce, very few sites know how to use this data to make more. OEE is a great example of this because It’s not how you measure the OEE figure that matters, it’s how you measure your OEE losses that makes the real difference.
The most typical way that most sites measure their output is through cases produced at the end of the line (typically a palletiser). This is by far the most common form of OEE measurement that we come across. Whilst this gives you a good idea of what you’ve made it won’t help you to identify what you’ve lost - which is what OEE is really all about.
The real ‘meat’ of your OEE calculation isn’t the % OEE number - that just tells you what you’ve made, it won’t help you identify what you need to fix/improve to get that number up.
What you really want to be measuring are your losses to OEE:
- 3 Loss: Quality, Performance, Availability
- 6 Loss: Breakdowns, Minor Stops, Speed Loss, Planned Downtime, Quality loss in running, Quality loss on startup.
With this information you have the capability to start CI plans to improve performance. It’s nice to know your OEE….it’s ESSENTIAL to know your losses.
So here’s a question for you to consider: At what point in your manufacturing process is it important to know either the 3 or 6 Losses to OEE?
In my next blog I’m going to explore the “Theory of Constraints” by Goldratt and Cox (see the Amazon link below), and how you need to apply this theory to get an OEE and Loss number that will help you improve.
Here are a couple of web-links that may help you to explore that question:
http://www.amazon.co.uk/Goal-Process-Ongoing-Improvement/dp/0566086654
http://en.wikipedia.org/wiki/The_Goal_(novel)
http://en.wikipedia.org/wiki/Theory_of_Constraints
Displaying Key Performance Indicators (KPIs)
November 5, 2008 by samirshah
Every company has some metrics to measure how well they are performing against targets. A few get these measures correct. The idea is to measure The Key Metrics so as to not over complicate and dilute the absolute key indicators for success.
Imagine driving a car….the dashboard provides me with key indicators to show how it is performing. There are some indicators that I react to immediately and others that warn me so I can plan ahead. To give an example of this:
- Immediate Reaction - If the speed indicator shows that the current speed is above the legal limit there will be an instant reaction to reduce that speed
- Planned intervention - If the fuel dial shows that there is a quarter tank left, I would make sure that I fill up at the next available opportunity
Now imagine if I received this feedback daily or weekly? It will be too late before I realise I need to do something and will be likely to receive a speeding ticket or left stranded as there was no fuel left. This is how most companies measure their Key Performance indicators. It is too late to remedy what happened yesterday. Won’t it be immensely beneficial to indicate the current performance to target in real time?
The XL800 system enables you to give this instantaneous feedback on the level of performance to the people who are driving your production. They can use this information to make an immediate change or a planned intervention at their earliest convenience. The important thing is that they are given the information to enable them to make a certain decision.
You can customise your XL800 system to display whatever performance measures you deem are important. It is capable of measuring over 100KPIs and this gives you the flexibility to customise and display your chosen KPIs to ensure that you are tracking the measures that will ensure your ultimate success!
Follow this link to get more information on defining the right KPIs for you http://en.wikipedia.org/wiki/Key_performance_indicator
XL800 and Takt Times
November 3, 2008 by david.evanson
One of the useful concepts to master in Lean Manufacturing is the concept of Takt Time.
Simply, the Takt time of a process is the maximum amount of time needed to produce a unit of a product to meet a customer demand. I like to think of the takt time of a manufacturing process as being like the “heart beat” of the line; it’s the pulse that demolishes your production plans and whacks out those units of product.
When i think of a “heart beat” a number of ideas pop into my mind - i wonder about the effect of an irregular heart beat on you or I, or perhaps a heart beat that’s too slow or too fast, or maybe a heart beat that’s been slowed down for a few days to cope with a change in the weather, or because it’s Tuesday today….no really! The great thing is that whilst this sounds like a strange thing to say about a human, we often experience it when we look at machines.
If your heart beat was erratic what would you want? I would be at my local casualty limply yet forcefully asking for an ECG pronto! Yet when we visit some factories quite often people have no idea at all that their factory heart beat, their takt times, are all over the place.
At OptimumFX we want to help you monitor the heart beat on your production line to ensure that it’s always fit and healthy. We can even help you set up alarms if the heart beat falls out of parameters to ensure that you always get the best from your machines and meet your targets.
Simply install an XL800 on your produciton line for a free trial to see a real time display of your current Takt time.
Best practice tip:
- Use your Takt time reading to set shift targets
- A great way to drive results on the plant floor is to drive production based on takt time - giving you teams the opportunity to “win” their production shifts.
Popular takt-time related KPI’s:
- Target “an automatically updated production target that increases based on takt time),
- Actual (the current production count),
- Efficiency (how far ahead of behind production is running in terms of a percentage).
