Special Issue - 2015 International Journal of Engineering Research & Technology (IJERT)
ISSN: 2278-0181
NCERAME - 2015 Conference Proceedings
Analyzing the Machine Utilization and Overall
Equipment Effectiveness of Machine Shop
T S Nanjundeswaraswamy*, Shreyas.R**,Shashank Kashyap**,
* Assistant Professor, Department of Industrial Engineering & **Research scholar, Department of Industrial Engineering &
Management,JSS Academy of Technical Education, Management, JSS Academy of Technical Education,
Bangalore, Bangalore,
Abstract:- The existing problem in manufacturing industries is D. Work Measurement
finding out the causes for low productivity. Low productivity can It is defined as the application of techniques designed to
be caused by factors like unplanned maintenance, tool failure, establish the time for a qualified worker to carry out a
machine breakdown, operator absenteeism, inefficient planning.
specified job at a defined level of performance.
An Effective Solution to this problem is the calculation of
machine utilization in the manufacturing industry. Overall
Equipment Effectiveness optimizes the process and gives us the E. Work Sampling
definite result that is expected. It is not confined to a specific It is the statistical technique for determining the proportion
industry or a specific problem, it is a global solution that of time spent by the workers in various defined categories
increases the productivity and in the recent years proven to be a of activity.
boon for manufacturing industrialists.
F. Performance Sampling
Keywords: OVERALL EQUIPMENT EFFECTIVENES, To measure working time and non-working time of a
Productivity, Supporting delays, Nonproductive activities.
person on a manual task, and to establish a performance
index or performance level for the person during his or her
1. INTRODUCTION
working time.
Machinery is the central to the production process and
G. Overall Equipment Effectiveness
manufacturers strive to optimize how it integrates with
It is a way to monitor and improve the efficiency of the
other machines and supervisory systems in their business
manufacturing process.OEE is one of the ways to optimize
enterprise.
the performance of the existing equipment and gives ability
to measure the machines for productivity improvement.
A. Effective Utilization
Effective utilization implies judicious and economic use of
the available resources, effective use of available resources
2. LITERATURE REVIEW
in the key productivity at the plant level and also to higher
living standards of the people. Overall equipment effectiveness (OEE) is a hierarchy of
metrics developed by Seiichi Nakajima in the 1960s to
B. Work Study evaluate how effectively a manufacturing operation is
It is a generic term referred to the techniques of method study utilized. It is based on the Harrington Emerson way of
and work measurements which is used in the examination of thinking regarding labour efficiency. The results are stated
human work in all its contents in a generic form which allows comparison between
manufacturing units in differing industries. It is not
They lead to the systematic investigation of all the factors however an absolute measure and is best used to identify
which will affect the economy of the situation being scope for process performance improvement, and how to
reviewed in order to affect improvement. get the improvement. If for example the cycle time is
reduced, the OEE will increase i.e. more product is
C. Method Study produced for less resource. Another example is if one
It is the systematic recording and critical examination of enterprise serves a high volume, low variety market, and
existing and proposed ways of doing work, as a means of another enterprise serves a low volume, high variety
developing and applying easier and more effective methods market. More changeovers (set-ups) will lower the OEE in
and reduced cost. comparison, but if the product is sold at a premium, there
could be more margin with a lower OEE.
OEE measurement is also commonly used as a key
performance indicator (KPI) in conjunction with lean
manufacturing efforts to provide an indicator of success.
Volume 3, Issue 17 Published by, www.ijert.org 1
Special Issue - 2015 International Journal of Engineering Research & Technology (IJERT)
ISSN: 2278-0181
NCERAME - 2015 Conference Proceedings
OEE can be illustrated by a brief discussion of the six
metrics that comprise the system. The hierarchy consists of METRIC 1: Availability
two top-level measures and four underlying measures. Availability = run time ÷ total time
Definition: Percentage of the actual amount of production
3. PROBLEM DEFINITION time the machine is running to the production time the
machine is available.
Under utilization of various manufacturing units due to Simple OEE: The total run time of the machine subtracting
number of non-productive activities which in turn all unplanned downtime.
decreases the Overall Equipment Effectiveness [OEE ]. METRIC 2: Performance
Performance = total count/ target count
4. OBJECTIVES By Definition: Percentage of total parts produced on the
machine to the production rate of machine.
To determine the utilization of machines and overall Simple OEE: How well a machine is performing during its
equipment effectiveness of machine shop by operation.
analyzing the data obtained. METRIC 3: Quality
To determine the present condition of capacity, Quality = good count ÷ total count
utilization of machines and reasons for less OEE. By Definition: Percentage of good parts out of the total
parts produced on the machine.
5. METHODOLOGY Simple OEE: How many good parts versus bad parts a
machine has produced.
1. Identification of manufacturing units C. OEE LOSSES
Loss category OEE metric Loss example
2.Collection of data and codification of activities
Equipment
Failures
Tooling Damage
3.Designing formats for main sample study Downtime loss Availability Unplanned
Maintenance
Process Warm Up
Machine
4.Conduct pilot study Changeovers
Material Shortage
5.Analyse the findings and compare with the
target to be achieved
Product Misfeeds
6. Suggestions for improvement
Component Jams
Speed loss Performance Product Flow
7.Check for feasibility of suggestions Stoppage
Level of Machine
Operator
8. Implementation and maintain Training
Equipment Age
A. DEFINITION OF OEE Tooling Wear
OEE is a way to monitor and improve the
efficiency of the manufacturing process. Tolerance
Adjustments
OEE is one of the ways to optimize the Warm Up Process
performance of the existing equipment and gives Damage
ability to measure the machines for productivity Quality loss Quality Assembled
improvement. Incorrectly
B. OEE FACTORS Rejects
Rework
OEE can be divided into the following three metrics which
will help to gauge the plants efficiency and categorize the
key productivity losses that will occur within the
manufacturing processes.
a. Availability
b. Performance
c. Quality
Volume 3, Issue 17 Published by, www.ijert.org 2
Special Issue - 2015 International Journal of Engineering Research & Technology (IJERT)
ISSN: 2278-0181
NCERAME - 2015 Conference Proceedings
D. FORMAT FOR DATA COLLECTION PRODUCTIVE ACTIVITIES:
TABLE 1.Productive activities
Activity Present Target
Working 31.46% 78%
Set-Up 5.09% 10%
Load/Unload 5.75% 1%
Total 42.3% 89%
SUPPORTING DELAYS:
TABLE 2. Supporting delays
Activity Present Target
Maintenance 7.09% 1%
Inspection 9.03% 2%
6. DAY-WISE SUMMARY SHEETS Tool Crib 4.79% 0%
Want of Tool 4.18% 0%
Want of Information 2.48% 0%
Total 27.6% 3%
NON-PRODUCTIVE ACTIVITIES:
TABLE 3. Non Productive activities
Activity Present Target
Break Down 2.72% 0%
Idle Late 4.36% 0%
Idle Early 4.13% 0%
Idle 4.36% 0%
Operator 6.06% 0%
unavailable
Not Working 6.67% 0%
Want of Work 1.81% 0%
Total 30.1% 0%
7. CALCULATIONS
Calculating OEE,
Availability = run time/total time
This takes account of Downtime loss
Performance = total count/target count
This takes account of Speed Loss
Quality = good coun/total count
This takes account of Reject losses
OEE = Availability x Performance x Quality
Availability is estimated to be 42.3%
Assuming both performance and quality to be
100%
OEE = availability × performance×quality
= 0.423 x 1 x 1
= 42.3%
Volume 3, Issue 17 Published by, www.ijert.org 3
Special Issue - 2015 International Journal of Engineering Research & Technology (IJERT)
ISSN: 2278-0181
NCERAME - 2015 Conference Proceedings
8. SUGGESTIONS NON-PRODUCTIVE ACTIVITIES
A. SUPPORTING DELAYS Breakdown, defined as failure of machine due to some
Maintenance is repair or regular changing of components failed.
coolant/components.
Causes: A. NOT WORKING
Regular Maintenance work carried during Causes:
shift hours. Delay in rectification of the problem, operators are
Coolant, Lubricant,& consumables changing idle throughout the shift.
done in shift hours Low quality spare parts, bearings used for replacing
Suggestions: worn parts.
Regular Maintenance should be done in break Suggestions:
times like Lunch & Overtime break. For regular maintenance, spare parts should be of good
Preventive Maintenance, coolant change, quality readily available for immediate rectification.
should be done periodically. Idle late, is defined as operators coming late after
Tool crib, it is operators going far from workplace & Tea/Lunch/Break.
searching for Tools, there by machine remains idle. Causes:
Causes: Operators extending their break duration.
Regularly used tools and fixtures not kept at Suggestions:
the workplace. Shop supervisors & Top management should manage
Tools store is far from shop. them to avoid these delays.
Suggestions: Canteen, Tea delays should be sorted out &
Regularly used tools, fixtures should be kept at the disciplinary action should be taken against late
workplace. comers without genuine reasons.
Tools store should be near to the Machine Shop. Operator unavailable is defined as operator not in duty or
Want of tool, is defined as machine idling due to non- has gone out of division with permission in work.
availability of required cutting / supporting / inspection Causes:
tools. Operators Absent with permission only, but machines
Causes: idle.
Poor planning activities of production planning. Absenteeism due to various other reasons.
Lack of job preparation. Suggestions:
Less co-ordination between Methods, Tooling, Supervisors should assign other operator to the
and Planning Depts , while process planning. machines for which operators are on leave.
Suggestions: All operators should be trained on other machines to
In Shop, Engineering Dept should be located. become Multi-Skilled.
Tools should be designed according to process’ Causes:
feasibility of usage. Unknown reason.
Establishing effective communication between Suggestions:
Methods, Tooling, & Planning Depts. Supervisors should try to know the reasons for Not
Mini Store with good quality & spares of tools Working even if all facilities are provided.
should be started.
RESULTS
B.Want of information, defined as machine waiting for NC 1. Minimizing the non productive activities by taking
Programming, its corrections etc. appropriate measures.
Causes: 2. Also reducing supporting delays ( inspection,
maintenance)
For storage of large size programs extra computers
3. Increasing the machine utilization. Thus increasing the
not available.
overall equipment efficiency, increasing productivity.
Designed CNC Programming may not be feasible
due to lack of interaction between programmers
and operators/supervisors.
Skilled Programmers not available.
Suggestions:
For programs storage, computer should be used.
Programmers should interact with their end user.
Training required for operators & programmers skills
improvement.
Volume 3, Issue 17 Published by, www.ijert.org 4
Special Issue - 2015 International Journal of Engineering Research & Technology (IJERT)
ISSN: 2278-0181
NCERAME - 2015 Conference Proceedings
RESULTS AFTER IMPLEMENTATION OF THE TABLE:6. Supporting Delays
SUGGESTIONS
TABLE: 5Non Productive activities Activity Present Target
Activity Present Target
Maintenance 5.70% 1%
Break down 2.40% 0%
Inspection 7.05% 2%
Idle late 2.70% 0%
Idle Early 2.40% 0% Tool Crib 3.90% 0%
Idle 3% 0% Want of Tool 3.00% 0%
Operator Absent 6.70% 8%
Want of Information 2.50% 0%
Not Working 5.70% 0%
TOTAL 22.60% 3%
Want of Work 1.40% 0%
TOTAL 24.30% 8%
CONCLUSION
Flow lines.
OEE Calculations Disciplinary Procedures.
From above results we can estimate OEE for the Machine Checking in & out of Shop.
Shop Making rest areas inside shop.
Availability can be estimated as 42.3% from working Lunch/canteen services inside the shop.
percentage. Management By Walk-Around. (MBWA)
Even if Performance & Quality are 100%
OEE = AVAILABILITY × PERFORMANCE × REFERENCES
QUALITY
= 0.531 × 1 × 1 [1] Measurement of overall equipment effectiveness as a basis for TPM
= 0.531 activities - Õrjan Ljungberg, (Department of Operations
= 53.1% Management, Chalmers University, Gothenburg, Sweden)
[2] Closed-loop measurement of equipment efficiency and equipment
World Average OEE for manufacturing plants is 60 %, capacity -Leachman, R.C.
And for World class manufacturing plants it is equal or Dept. of Ind. Eng. & Oper. Res., California Univ., Berkeley, CA,
more than 85 % . USA
[3] http://www.google.com
[4] http://Google images
Table:7 Productive Activities
[5] http://www.wikipedia.org
Activity Present Target
Working 42.20% 78%
Set-up 6.04% 10%
Load/Unload 4.50% 1%
TOTAL 53.10% 89%
In terms of activity occurrences the machines were
working for 53.2% of the reading so OEE can be
estimated as 53.2%.
Inspection activity is7.5%, it should be reduced but
compared to Maintenance, 5.7% & not working
activity,5.7% it can be considered later. The Downtime
Loss due to biggest reasons is Inspection activity and
Maintenance.
Solution for Breakdown is only Preventive
Maintenance. Identifying PM Status should be carried
out for all machines & ensure strict adherence to future
PM Plans.
The main reasons for idleness are cultural & work
practices norms. Addressing these is a major task that
requires significant Management Commitment. Other
companies controlled it by taking following measures,
such as
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