While Futuristix reports that DT (downtime) Analyst continues to be welcomed with open arms by production managers as their OEE (overall equipment effectiveness) measurement tool of choice, the company points out that there are elements of this same community that are opposed to its implementation. Says Mike le Plastrier: "We think we know why and we also think that they are unduly concerned. The truth is out there and the sooner everyone starts to work with it, the easier, more lucrative and more productive their jobs will become."
There are some production managers who simply do not want to dig deeper into the cause of poor process performance because they are afraid of the can of worms that they may open. This is a bit like not going to the doctor because of the fear of finding out what may be wrong with you. That fear is also proportional to the possibility of your ailment being entirely your own fault.
Picture the scene; an appliance manufacturer makes 70 refrigerators every day. One day, 'things' are going particularly well and 75 units are produced. It is a fair bet that the five extra units will be hidden somewhere in the system in order to correct the numbers on an 'off' day when 'things' are not going quite as well. The net result of this sort of 'sandbagging' is that no one will ever know why 'things' went right or why they did not. Insofar as management is concerned, the company is maintaining a steady production of 70 refrigerators per day and someone (ie, the production manager) should be congratulated for maintaining this steady output 'through thick and thin'.
This same production manager, after a healthy pay raise, soon gets the idea that increases are proportional to meeting the expectations of top management. And so he calls for a demonstration of DT Analyst but is somewhat taken aback at the thoroughness of the breakdown analyses available. Everything is there for everyone to see. Not only those noticeable stoppages of 10 and 20 minutes or more but also all those profit-sapping down times that last no more than a couple of minutes and that are mostly ignored. According to our production manager, DT Analyst outlines cause and effect scenarios that are too detailed for management and concludes that it is not necessary. In reality, however, he does not want something that will highlight trouble spots and that could cause him embarrassment. Rather carry on as before than make waves. So production figures will keep getting smoothed out with no one being any the wiser as to what went right on good days or what went wrong on bad days.
The bizarre thing, however, is that our production manager is not entirely wrong for wanting to sweep things under the rug. The fact of the matter is that most existing management structures in production environments are not equipped to fully understand or reap the benefits of effective OEE deployment. They would rather try to achieve set goals rather than instil a culture of continuous improvement. OEE is a diagnostic tool that requires a constant level of human analysis, troubleshooting and process rectification not normally found in the industry. In fact, it requires the skills of someone dedicated to continually improving the company's production processes and to match those processes to the company's business objectives. See Figure 1 for an example.
Imagine a bottling plant that produces 500 one-litre bottles per minute. This means that 500 litres of the company's product can be shipped out every minute. Now the line switches to half-litre bottles which halves the production output as well as the OEE (see Figure 1 where performance is halved). Nothing has suddenly gone wrong with the machinery, which is designed to process 500 bottles per minute, irrespective of their capacity. So, OEE changes according to the production process it is measuring but it requires an analytical mind to see this and to do something about it. Should the company continue to sell half-litre bottles, for example, and what would marketing have to say about it?
In this day of fierce competition and demanding customers, manufacturers have little choice but to optimise their processes the best way they can. Sweeping things under the rug can lead nowhere other than unpleasant surprises because it prevents effective control through timely knowledge of cause and effect scenarios. OEE provides management the insight they need for this control and elevates production to a new level of professionalism and profitability. It also helps the company develop internal performance standards and compare its performance to other companies in the same industry or across other industries. In short, OEE is no longer a luxury but a necessity for those companies that want to retain tight control over their competitiveness and profitability.
About DT Analyst
DT Analyst captures equipment downtime data for analysis in order to improve ROI. DT Analyst also handles OEE (overall equipment effectiveness). OEE is a system of measurement used by the world's leading manufacturers that allows managers to evaluate the true effectiveness and potential of existing plant before making decisions about expansion or the purchase of new plant. OEE has become the crucial link between the financial and operational performance of production assets and has emerged as a powerful method of evaluating the productivity of automated production systems. OEE rolls inefficiencies related to equipment, consumables, personnel, procedures, and quality into a percentage.
For more information contact Mike le Plastrier, Futuristix Advanced Control Systems, 011 723 9900, [email protected], www.futuristix.co.za
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