Your biggest OEE mistake?
March 26, 2009 by adrianpask
So you’re measuring OEE and breaking out some of the losses - do you want to know one of the biggest mistakes i believe sites make at this point?
I believe that one of the biggest mistakes people regularly make is that they don’t measure the accuracy of their data.
What does this mean? Well it means that you are potentially taking action on highly inaccurate data with absolutely no idea of how inaccurate it is! In reality the chances are that your team are fudging the numbers so that they always add up to 100%. If you doubt me do this: Walk out onto the line and discretely observe how many minor stops are accurately recorded by the operator. Look at the tick sheets - how many of your stops are nice round numbers; 1min, 5min, 15min?
Whilst our MachineView and XL systems get 100% accuracy on a single asset when it comes to calculating losses on an entire production line even our LineView system which is an extremely accurate fully-automated causal downtime system only averages 98% efficiency on a complex line!
Whenever we work out an OEE number we look for:
1. Completed production
2. Maximum theoretical production
3. Mins attributed to downtime
4. Unallocated downtime
If I ever see an OEE calculation with 100% accuracy then i would lay £50 on the table that someone is fudging the numbers at some point. This is because most manual systems get calculated at the end of the shift - your 4hr of non-production time is assigned to whatever downtime reason codes the team want.
For good quality information you need to know not only how many mins of downtime were captured…but how many were missed out as well.
OEE Journey from OptimumFX
January 26, 2009 by adrianpask
Introducing the OptimumFX OEE Journey:
One of the questions we often bounce around as a team is; “We’ve all heard of ‘The Toyota Way’, so what is ‘our way’? What is the UK FMCG way?”.
This question has pointed us in one direction - there isn’t one….so let’s create it! We’re calling this way the: “OptimumFX OEE Journey”.
Click here to download OptimumFX OEE Journey
A little bit of background: Over the last 7-8 years we’ve been developing systems such as LineView, MachineView, and more recently the XL800 OEE system, and fine tuning the processes that you can use alongside our systems to get great results. We’ve used these processes to support some of the biggest FMCG brands in the UK to get some great results.
As we move into 2009, our objective this year will be to publish these processes, document our OEE Journey, and to make our OEE systems as readily available to you as possible.
Our goals for the OptimumFX OEE Journey in 2009 are:
- Throughout 2009 OptimumFX will be publishing a number of white papers and articles to consolidate our theories for OEE improvement.
- We will be working with a number of UK Manufacturers to jointly test and publish the results from our implementations.
- Our goal is that if you want to improve OEE, we want you to be able to pick up our systems and theories, and apply them straight away.
What does this mean for you?:
- We will share our OEE Journey completely free of charge - just sign up to this blog for more details.
- XL800 OEE System trials: You can get Free Trials of our XL800 OEE Systems. Free trial of great data completely free - we’ll even help you create robust processes to get results straight away. At the end of free trial either give the system back, or buy it.
- LineView trials: Every year we intend to give one site a copy of LineView on a 6 month free trial. This year we’re working in collaboration with the “Best Factory” team from Cranfield School of Management to deliver this project. To find out more and apply follow this link: http://www.optimumfx.com/freelineview/index.html
- Or download our LineView trial document: Click here to download the LineView Trial Offer
Changing IT priorities in 2009?
January 12, 2009 by adrianpask
The Annual Manufacturing report 2008 which came with The Manufacturer last month and i’ve just been reading the IT section.
When this survey was taken:
73% of business said that IT was essential
When asked about priorities in the LAST 12 months companies said:
- 73% upgrading IT infrastucture
- 67% Management information systems (MIS)
- 33% system integration
- 33% Enterprise resource planning
When asked about priorities in the NEXT 12 months companies said:
- 60% Management Information Systems (MIS)
- 47% Upgrading upgrading IT infrastructure
- 40% CRM
- 33% Enterprise resource planning
For me this leads me to several conclusions and a big question.
1. A lot of companies now have an IT backbone entering 2009 that wasn’t present in 2008 - this implies to me that systems are becoming more integrated and that solutions will need to meet that requirement
2. MIS is becoming increasingly more important. We’ve been providing MIS systems targeted on OEE improvement since 2001 with our LineView system leading the way, and more recently with MachineView and XL800 and we’re certainly finding that people are far more interested in talking about MIS systems now than a few years ago. For us this means that 2009 is about making our systems known and ensuring they meet your needs with elegance and the right cost.
3. With 33% of companies in 2008 and 2009 looking at ERP systems this is very heartening - part of our focus for 2009 is in linking our LineView system up with systems such as SAP to enable demand planning (ERP) across multiple lines and multiple sites.
The million dollar/pound/yen/euro/rupee question…how has the current economic situation changed these priorities?
- For me MIS is one of the areas in which the implementation of a system can directly improve the performance of a line. Therefore if you’re looking to implement an MIS system this year then do so in the knowledge that it can directly improve your productivity, but only if your teams use it. We have a huge amount of experience in this area and are very comfortable saying that a system is only so good as how it’s used!
So let me know - how are you expecting the current economic climate to effect your business this year?
About OptimumFX
December 9, 2008 by adrianpask
What you get with OptimumFX is experience combined with a dedicated passion.
At OptimumFX we’re dedicated to helping FMCG manufacturing companies increase their productivity and profits.
Born in 2001 and originally conceived as FMCG automation specialists OptimumFX initially developed the LineView system with Coca-Cola Enterprises. Since then we have primarily focussed on helping our customers drive productivity through systems.
In 2005 we moved away from acting primarily as ‘system suppliers’ and changed the focus of our business to ‘helping customers improve productivity’. This has fundamentally changed how we work – we measure our projects on return on investment and the successful implementation of sustainable improvement.
At this point we started recruiting an implementation team with extensive experience working successfully at the highest levels in manufacturing environments implementing activities that drive productivity and cut costs.
Our team have amassed more than 40 years of experience worked in companies like Coca-Cola Enterprises Ltd, Geest, Ricoh, Cadbury-Schweppes, Northern Foods and Britvic.
We are always interested in meeting and learning from people with as much passion for manufacturing improvement as us.
For more information on what it means to work with OptimumFX please download this guide: Download our values and principles document.
Thanks to our expertise, we know what works and what doesn’t for almost any industry and are happy to assist you.
“The end of the world is nigh (again)”
December 2, 2008 by adrianpask
I’ve just finished reading this awesome blog post by Reg Connolly about the power of perception and think you will also find it interesting.
NLP is an integral part of the OptimumFX business with 1/2 the team trained, and the other half gaining exposure all the time. I wrote a short article on this on our main website in February 2007.
For us our experiences to date with NLP have helped us to set really powerful internal goals that we have the capability to communicate to each other in meaningful ways.This article is a great example of how different people experience events in different ways - the example of the journalists on the train. To a lesser extent whenever we set business or project goals the potential for the same misunderstanding always remains and NLP processes can help us to maximise the effectiveness of our communication.
We also frequently refer to specific NLP processes when talking to sites about OEE improvement and the ways of helping people to understand what the improvement means to them. Most specifically when we’re working with a management team to create a plan for change we have found that our NLP training can help us to ask even better questions to facilitate the process.
There are 2 points that really resonated for me in Reg’s blog:
1. The power of frames - how the way in which we tune our mind to pick up information on the world…and more specifically, how these frames can be set by the press to help them sell more papers. For us I wonder how we can tune people into finding and delivering change?
2. Creating change. The “shock-sadden-scare” approach that Reg outlines is effective, and i wonder how else can we support people to create results through empowering them to change, rather than driving them to change.
When we talk to you about change and about using data (be it manual collection, XL800, or LineView) to drive that change what we are attempting to do is support your requirement to improve OEE (sell more papers) through the use of factual data that provides transparent comparison for robust decision making.
READ REG’s GREAT BLOG ENTITLED “THE END OF THE WORLD IS NIGH (AGAIN)” BY CLICKING HERE
Introducing automated data capture
November 30, 2008 by adrianpask
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
