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A method for improving ROI and Flow when introducing new production equipment
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Apr 12, 2023 www.leanteamsusa.com 1
Robert BairdLean Teams USA
+1 215 353 0696
Design For OEE (DFOEE)
Apr 12, 2023 2
DESIGN FOR OEE (DFOEE)
Apr 12, 2023 3
Making losses more transparent highlighting areasfor improvement during theDesign Stage of new production equipment
DFOEE Equipment Design Questions• How much operational cost can we save, equipment ROI
improvement?• What is the most effective throughput for the system?• How can we improve the “Six Big Losses”?• Which components must improve related to scrap?• How can we minimize transportation within the machine?• How can we minimize changeover time?• How can we design for product flexibility?• What are the safety and ergonomic concerns?• How to improve preventative maintenance (modular components)?• How can we simplify Autonomous Maintenance tasks?• Can the design combine the prior or next operation or both?• Can operation be simplified, improving training time?• How can we standardize the input and output for prior and next
operation?• Why is the flow left to right and the next operation right to left?• Can we optimize the footprint?
Apr 12, 20234
Design For Performance
• Increase speed – Switching from pneumatic to servomotors,
45% throughput increase
• Increase Speed– Limiting wasteful transportation of product
and application motion, 100% throughput increase
Apr 12, 2023 www.leanteamsusa.com 5
Six
Big
Loss
es
Loss Category OEE Loss Category Examples
Breakdowns Down Time Loss • Tooling Failure• Unplanned Maintenance• General Breakdowns• Equipment Failure
Setup and Adjustments Down Time Loss • Setup• Material shortages• Waiting for next operation• Operator shortages• Major adjustments• Warm-up time
Small stops Speed Loss • Obstructed product flow• Component Jams• Misfeeds• Sensor Blocked• Delivery Blocked • Cleaning/Checking
Reduced Speed Speed Loss • Rough Running• Tool Wear• Under Design Capacity• Equipment Wear• Operator Inefficiency/ability
Startup Rejects Quality Loss • Scrap• Rework• In-Process Damage• In-Process Expiration• Incorrect Assembly
Production Rejects Quality Loss • Scrap• Rework• In-Process Damage• In-Process Expiration• Incorrect Assembly
6
7 Six
Seven
Big
Loss
es
Loss Category OEE Loss Category Examples
Waiting Down Time Loss • Product from previous operation• Information• Instructions• Skill
SYSTEM IMPROVEMENTS
Basic DFOEE Concept
>Equipment ROI & System
Flow
Equipment and Flow Losses
Apr 12, 2023 www.leanteamsusa.com 8
Apr 12, 2023 9
System Approaches
Armand V. Feigenbaum
TQM
Apr 12, 2023 10
System Approaches
Taiichi Ohno
TPS
Apr 12, 2023 11
System Approach
DFOEE
Apr 12, 2023
Design For OEE (DFOEE)
12
Process 120 Units/min
Process 215 Units/min
Process 320 Units/min
Design For FlowProcess 1 or 3 New Equipment Design to 30 Units/min is a Waste
= Process Output15 Units/min
DFOEE Team
Supplier Lean Sigma
Process Engineer Lead Operators
Equipment Design
Apr 12, 2023 www.leanteamsusa.com 13
SYSTEM KNOWLEDGE
Which Process to Improve OEE
Apr 12, 2023 www.leanteamsusa.com 14
Consider the O
Which Process to Improve OEE• Weighted Average Method• Value Added = Product Revenue –
COGS
Apr 12, 2023 www.leanteamsusa.com 15
Process OEEValue Add
Value %
OEE Value
1 85.0% $44,320 22.5% 19.2%
2 60.0% $51,005 25.9% 15.6%
3 77.0% $42,315 21.5% 16.6%
4 82.0% $48,900 24.9% 20.4%
5 55.0% $10,100 5.1% 2.8%
Total $196,640 100.0% 74.5%
3.8%
20.8%
Vs
DFOEE Benefits• System flow improvements (Quality Cost Delivery)• COGS improvement• Improvement resources focused on value add• Reduced Equipment Operator training time• Fast changeover• Quality improvement• Reduced maintenance time and cost• Safety and ergonomic improvement• World Class OEEApr 12, 2023 www.leanteamsusa.com 16
Guaranteed ROI From Lean Teams USAContact Us
• Lean Teams USA Lean Consulting
• View My Profile on LinkedIn
• See my DFOEE Blog
• Lean Teams USA +1 215 353 0696
Apr 12, 2023 www.leanteamsusa.com 17