Performance measures
Overall equipment effectiveness (OEE)
Description
OEE is a means of assessing the losses of a machine or process plant. There are 3 primary categories of loss and 6 types of loss. The 3 categories are; Availability, Performance and Quality The 6 main types of loss are; Changeover (see Quick Changeover), Breakdown, Idling and Minor stoppages, Speed, start up quality, inprocess quality.When should it be used?
It should be used on all plant continuously, but where it isn't used at all yet, the priority is on bottleneck processes and plant which is potentially about to be replicated with a capital purchase.What will you get?
. A clear understanding of the performance of each machine in the facility
. Identified capacity constraints
. Prioritised actions to improve plant performance
. An understanding of the difference between Planned and
Unplanned downtime and its significance
The Process
. Train the team in the principles of lean to get the broad appreciation of
the importance of the measure in a lean context.
. Design the data collection form with the team
. Estimate, or obtain from [maintenance] records the current OEE.
. Size the areas of waste and capacity opportunity across the facility.
. Prioritise the plant to apply a BOMBxx event.
. Make the measure visible and ensure all team members understand how
to complete it.
Description
The truism 'You get what you measure' can be interpreted that if you want to change something then measure it until it stops changing, then measure it less often.Performance measures will be different for each facility and at each level in the business, but for lean facilities the measures must be to encourage the flow of product. This applies equally to physical product and information.
When should it be used?
All handover points for the product along its flow are an opportunity to establish the flow efficiency.What will you get?
Vital knowledge of where the variation in the process is and how big it is.Opportunity to control the process.
The Process
Understand what you are trying to achieve. Is it operational excellence or the effectiveness or timing of a change programme?Focus on the customer or next user. If they measure you by it then you should at least measure it too. Measure anything that is varying because you should be striving for stability in all processes, so measure those which threaten your customer credibility first and the influencing factors second.
Measure that which you want to improve and set targets (levels and timescales). Set the frequency of measurement (do not over-measure). Ensure that your measures are owned by a named person who is responsible for collecting the data and updating the reports. It is not essential to document everything on a PC - that activity is a waste in itself.
Know when to stop measuring - what is your success criteria?
Description
A maturity matrix is a mechanistic way of assessing the overall progression of a lean programme over a long period, possibly quarterly. It is used to understand where resource may need to be applied to correct the balance of capability across the lean themes.When should it be used?
At quarterly business reviews with the Exec.What will you get?
. A 'helicoptor view' of the lean status accounting for all aspects.
. A comparison of progress against the last review.
. A direction for the thrust for the next quarter period.
The Process
. Agree the content of the matrix with the team
. Assess, by debate, where the facility is now, topic by topic
. Determine where the facility needs to be in 12 months time
. Develop an action plan to move each topic through the matrix to the
target and assign names to own the progression of each action.