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Casual Articles - The Use and Abuse of OEE
The Advantages of Giant Advertising Balloon being broken down or having some changes or adjustments made. The definition of availability allows for planned maintenance, when the machine is not meant to be available to production, but makes no allowance for changeovers etc. No machine with changeovers can ever be 100% available. The reason for taking such a hard line is that changeovers are a major loss to both efficiency and flexibility, so the OEE analysis focuses attention on it by making no changeover allowances.One evening you are walking down the street with a gloomy mind. Unexpectedly you look up and see a colorful giant advertising balloon and rapidly a cloak of delight engulfs you. At all times, simple brilliance has delighted human mind. Different innovation has enriched the ad world for ages but nothing has touched human heart like simplicity. Arouse joy and increase your sale, advertise your brand on giant balloons.The prime aim of any ad is to capture your customer's attention. But ads on radio or T.V have lost their appeal and are fast reaching expiry date. The ads on newsprint or Internet pop ups give no surety of grabbing attention. So, its time to give your business a new life with advertising balloons. A Giant ad balloon will ensure the gaze of your potential buyers at your company slogan .The giant advertising balloons are generally mounted on a building top or adorn the ground showing off your business logo. Performance e The United States of America is a Franchise System of States What is OEE for?Have you ever considered that so many of the greatest or longest lasting organizations resemble a franchise system? It is true and as I have been studying this for some 30 years. Consider some of the organizations that are successful these days. We have the Catholic Church one of the longest running religions of mankind and it is a franchise system, just study its structure some time and you will agree.The United States is also a franchise. Consider that the Federal Government is the Franchisor and the State Government are Master Franchises and the Counties are regional developers with the cities being the franchisees and all us citizens; yes, well we are the Customers you see? In fact the United States government and our nation has now become the greatest country in the history of mankind. Why? Because it is a franchise.Perhaps we should franchise all nations of the world and concentrate on the global citizens The simple answer is “Improvement”. OEE is an improvement measure and is used as part of the improvement cycle. Unfortunately, much is made of the 85% ‘World Class Standard’ an arbitrary target found in the original TPM literature. Not only is this target out of date (Nissan in Sunderland are running welding lines at 92-93% OEE) it gives the wrong message. A customer has no interest in your OEE – that is an internal measure, which relates to your efficiency and costs. The customer is far more interested in a measure such as On Time In Full (OTIF) ie did I get my order? Running a manufacturing business on an arbitrary efficiency measure rather than a customer satisfaction measure is a recipe for disaster. The best use of an OEE target such as 85% is to recognise that if you are reaching that level and the customer is still not getting his orders on time, then you may have a capacity constraint. OEE does not tell us if we have a problem, the customer does. What OEE does do is help us analyse the problem and make improvements. This is why Toyota use it as a spot measure on a particular machine where there is a capacity or quality problem. Calculating the OEE of anything other than a discrete machine or automated line is pointless; we have far better measures of the efficiency of a factory or department as a whole. OEE developed out of the need for improvement groups to have a way of measuring and analysing equipment problems as part of their Define, Measure, Analyse, Improve, Control cycle. OEE defines the expected performance of a machine, measures it and provides a loss structure for analysis, which leads to improvement. It can then be used as a tracking measure to see if improvement is being sustained ie if control is sufficient. What does OEE measure? At its simplest, OEE measures the Availability, Performance and Output Quality of a machine. A machine is available if it is ready to produce, as opposed to being broken down or having some changes or adjustments made. The definition of availability allows for planned maintenance, when the machine is not meant to be available to production, but makes no allowance for changeovers etc. No machine with changeovers can ever be 100% available. The reason for taking such a hard line is that changeovers are a major loss to both efficiency and flexibility, so the OEE analysis focuses attention on it by making no changeover allowances. Performance e Business Plan Appeal - Five Rules For Writing Attention Grabbing Headlines e customer is far more interested in a measure such as On Time In Full (OTIF) ie did I get my order? Running a manufacturing business on an arbitrary efficiency measure rather than a customer satisfaction measure is a recipe for disaster. The best use of an OEE target such as 85% is to recognise that if you are reaching that level and the customer is still not getting his orders on time, then you may have a capacity constraint.The success of a business plan stands or falls on its ability to get potential investors to take a moment to read it. Nothing works better for doing this than well-written headlines designed to interrupt and engage investors. Here are five fundamental rules for writing and incorporating headlines into your business plan.More important than anything else, try to get investors’ self-interests into every headline you write. Make your headlines suggest to investors that there is something about your business plan or venture they want. This rule seems so obvious. Yet, absent omitting headlines entirely, it is the rule most often violated. Replace overused one word headings like "Company", "Products", "Market", Financials" with headlines that appeal to investors’ self-interests like making money, protecting their investment, or building trust.Be sure to get news worthy information like new pro OEE does not tell us if we have a problem, the customer does. What OEE does do is help us analyse the problem and make improvements. This is why Toyota use it as a spot measure on a particular machine where there is a capacity or quality problem. Calculating the OEE of anything other than a discrete machine or automated line is pointless; we have far better measures of the efficiency of a factory or department as a whole. OEE developed out of the need for improvement groups to have a way of measuring and analysing equipment problems as part of their Define, Measure, Analyse, Improve, Control cycle. OEE defines the expected performance of a machine, measures it and provides a loss structure for analysis, which leads to improvement. It can then be used as a tracking measure to see if improvement is being sustained ie if control is sufficient. What does OEE measure? At its simplest, OEE measures the Availability, Performance and Output Quality of a machine. A machine is available if it is ready to produce, as opposed to being broken down or having some changes or adjustments made. The definition of availability allows for planned maintenance, when the machine is not meant to be available to production, but makes no allowance for changeovers etc. No machine with changeovers can ever be 100% available. The reason for taking such a hard line is that changeovers are a major loss to both efficiency and flexibility, so the OEE analysis focuses attention on it by making no changeover allowances. Performance e Cash Back Portals and Their Variety of Products . What OEE does do is help us analyse the problem and make improvements. This is why Toyota use it as a spot measure on a particular machine where there is a capacity or quality problem. Calculating the OEE of anything other than a discrete machine or automated line is pointless; we have far better measures of the efficiency of a factory or department as a whole.The chief reason why we overlook the variety offered by a cash back portal is the cash back itself. We are too concerned with the cash back offers and forget about the variety of products that we get at such portals.Besides the cash back offers, a cash back portal also has thousands of products in store for us to choose. Mobiles, credit cards, shares, designer clothes, books, computers, DVD players, cameras, televisions, cookers, beauty and fitness products, insurance products, chat rooms, gambling, dating, insurance, gifts and toys, DIY kits- the list of products and services is endless!Some of the new portals coming up are also likely to include web designing service providers, career counsellors, real estate agents, saving vehicles (pensions and ISAs) providers etc. to their list of categories. On most of the portals you are also likely to find sub categories under the broad categories. For example, under th OEE developed out of the need for improvement groups to have a way of measuring and analysing equipment problems as part of their Define, Measure, Analyse, Improve, Control cycle. OEE defines the expected performance of a machine, measures it and provides a loss structure for analysis, which leads to improvement. It can then be used as a tracking measure to see if improvement is being sustained ie if control is sufficient. What does OEE measure? At its simplest, OEE measures the Availability, Performance and Output Quality of a machine. A machine is available if it is ready to produce, as opposed to being broken down or having some changes or adjustments made. The definition of availability allows for planned maintenance, when the machine is not meant to be available to production, but makes no allowance for changeovers etc. No machine with changeovers can ever be 100% available. The reason for taking such a hard line is that changeovers are a major loss to both efficiency and flexibility, so the OEE analysis focuses attention on it by making no changeover allowances. Performance e Adult ADD: Business Has to Include Trust eir Define, Measure, Analyse, Improve, Control cycle. OEE defines the expected performance of a machine, measures it and provides a loss structure for analysis, which leads to improvement. It can then be used as a tracking measure to see if improvement is being sustained ie if control is sufficient.Do you have delegation-itis? It is a control type of a fear that makes people with ADD think, How do I delegate something that I don't' know how to do? How do I tell somebody what I want when I don't get it?Okay. So let us ask you this: Do you know who Jack Welch is?Jack Welch was the president of GE for many, many years and years. He did a turnaround, he build that corporation globally, he's written several books on leadership and winning. Now he's the head honcho of his organization. Do you think that he knows how to get postage in the postage meter in the mailroom? Probably not, right? Do you think that if he needs to get postage in the postage meter in the mailroom that he can get it done without having to do it himself?Of course he can. Right? So it's the exact same thing that needs to happen with you and your business. Now this requires a little bit of a flip-around of thinking. Because a What does OEE measure? At its simplest, OEE measures the Availability, Performance and Output Quality of a machine. A machine is available if it is ready to produce, as opposed to being broken down or having some changes or adjustments made. The definition of availability allows for planned maintenance, when the machine is not meant to be available to production, but makes no allowance for changeovers etc. No machine with changeovers can ever be 100% available. The reason for taking such a hard line is that changeovers are a major loss to both efficiency and flexibility, so the OEE analysis focuses attention on it by making no changeover allowances. Performance e Get Rid of Your Customers - Treat Them Like Family being broken down or having some changes or adjustments made. The definition of availability allows for planned maintenance, when the machine is not meant to be available to production, but makes no allowance for changeovers etc. No machine with changeovers can ever be 100% available. The reason for taking such a hard line is that changeovers are a major loss to both efficiency and flexibility, so the OEE analysis focuses attention on it by making no changeover allowances.After a careful marketing strategy, your customers are finally pursuing you. They want your goods, they want your services – but how do you know you have a marriage and not just a bad blind date? You want your customers to return in droves, if for no other reason than because, according to the Better Business Bureau, gaining the trust of a new customer is five times more expensive than continuing a relationship with a current one. The best way to maintain a successful relationship is to stop treating your customers like customers and start treating them like…well, like family.Let’s say your customer walks into the store for the first time. Do you remind them of a shark pursuing its prey? Or are you friendly and helpful? Customers will respond better if you take the time to learn a few things about them – their name is a great start – and create a human connection before moving on to business. Complement their clothes. Performance efficiency measures the output during available time compared to a standard. Here there can be debate about what the standard output should be. A good rule of thumb is to make the performance calculation based on best known performance. This may be greater or less than design speed. My argument is that if a machine has never reached its design performance it is not helpful to measure against that. On the other hand, if it has consistently out performed the design spec you can have (and I have seen) performance figures of 140%, which can hide poor availability. This is always remembering that one purpose of OEE is to help tell you if you have the capacity to meet customer demand. Output Quality is a First Time Through measure – what percentage of the output was right first time, without any rework. FTT measures are always the best quality measures. The issue in OEE is that sometimes the quality feedback is not immediate. In FMCG businesses, a customer complaint can be received three months or more after production. In these cases it is best not to include quality in the OEE calculation and use a more customer focused measure for quality – number of complaints etc. If there is no way we can use the Quality component of OEE in a real time improvement cycle, then it is pointless to measure it. Loss Analysis The next level of analysis is the seven (or six or eight or sixteen) losses. Within OEE we usually talk about seven losses, although TPM loss structures have been known to define 23 losses in all. Availability losses are primarily Breakdowns and Changeovers. Changeovers can be separated into Tool changes, Material changes and Reduced Yield at start up, but fundamentally these are the same issue. Further analysis reveals breakdowns to have two fundamental types, those due to deterioration because of inadequate maintenance and those due to inherent machine characteristics. This gives us three basic responses to availability issues –
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