Manufacturing Conference Workshop 3 - OEE and Energy

John Roberts

Managing Director, Operations, Idhammar Systems

Energy Efficiency and OEE

15th November 2012

©Copyright 2012 Idhammar Systems Limited

Pan-industrial Customers

KEEPING INDUSTRY MOVING AND IMPROVING...


Proven Track Record in the Food Industry

Workshop• What is OEE and how does it influence energy

usage?• What information is available now?• Linking Energy usage to production and

inefficiencies• Improvement Opportunities• Payback


What is OEE and how does it influence energy usage?• A standard index of manufacturing efficiency• Based on...

• Utilisation• Line availability• Manufacturing performance• Product quality

• Why use it....• Compare performance within industrial sectors• Measure of continuous improvement on a line or within a site• Highlight inefficiencies

• Drive improvements in efficiency


Why measure OEE?


• Facilitate Continuous Improvement• Identify efficiency losses (and opportunities for

improvement) in detail...• Minor stops• Slow running• Material scheduling failures• Quality issues• Line and machine downtime• ‘No Production Required’ windows

Availability 65%

Performance 67%

Quality 92%

OEE 40% 60% Opportunity for Improvement

BreakDown

No Staff

Minor Stops

SlowRuns

Rejects

Scheduled Production Time

168 hour week

OEE: the basics

NoMateri

als

No Production Plan


Gathering the data• Automated metering

• Meter reference• Date & time• Meter reading

• Manual• Area / Line / Asset • Date• Meter reading


Monitoring Energy


• Energy consultants have offered this type of service for years

• They can provide• Energy consumption by site• Sometimes by zone/area• Graphs over time

• Accurate analysis can be difficult due to a shortage of meters

Standard Approach: Limited Meters

Zone A Zone B Zone C480

485

490

495

500

505

510

Zone A - C, Week 01 - 2012

kWh


Too few meters: accurate analysis is restricted.Zone B has used the most electricity, but where and why?Has Zone B run for a longer period?

Better: Energy Consumption by Line

Line 01 Line 02 Line 03 Line 04 Line 050

100200300400500600700

Lines 01 - 05, Week 01 - 2012

kWh


More meters: we can compare electricity usage between production lines.But we still can’t tell if Line 04 has run for a longer period.

Even Better: Energy Consumption by Asset

Filler Capper Boxmaker0

100

200

300

400

500

Line 01 - Assets, Week 01 - 2012

kWh


More meters: the filler has consumed the most electricityBut we still don’t know how many products have been made.

Full Picture: Energy and Product Produced


Base kWh load Performance blip Higher than base load, production has finished and staff forgot to turn off the glue unit

Energy Usage with Drill down to Assets


Energy Usage Over Time with Units Produced


Gathering the Data


Current Transformers

Pulse Meters for Gas & Water• OEE already provides:

• Asset Structure• Running Hours• Products Made• Stoppage Events• Productivity• Utilisation

• Energy Data feeds will provide:• Energy Consumed• Energy per Production unit

by time• Energy usage comparisons:

• Line / Shift / Product

Opportunities


• Can we turn heaters on later?• Can we install more efficient heaters?• Can the plant run faster for the same energy

usage?• Can any equipment be powered down during a

breakdown or Production stoppage?• Can we automate power shutdown?• Can we use OEE analysis improve in these areas:

• Minor stops• Slow running• Material scheduling failures• Quality issues• Line and machine downtime• ‘No Production Required’ windows

ROI: Bakery


Return on Investment per production line High volume High waste Low product unit price High energy cost Significant quality monitoring Manual data capture

Some opportunities for manpower reduction

Costs

OEE system £ 4,000

Internal manpower allocation at start up

£ 1,000

Total £ 5,000

Potential Savings per Day Value now

1% improvement

Product sales value £ 24,000

£ 240

Daily throughput 80000

Sales revenue per unit £ 0.30

Cost of Waste £ 1,500

£ 15

Manpower £ 2,500

£ 25

Energy £ 7,000

£ 70

Quality management £ 100

£ 10

Total £ 360

Return on Investment 14Days

ROI: Spirit Bottler


Costs

OEE system £ 15,000

Internal manpower allocation £ 1,500

Total £ 16,500


1% improvement

Product sales value £ 28,000

£ 280


Sales revenue per unit £ 4.00

Cost of Waste £ -

£ -

Manpower £ -

£ -

Energy £ -

£ -

Quality management £ -

£ -

Total £ 280


Return on Investment per line High volume Low waste Moderate product unit price Steady energy usage Automated quality monitoring

Automated data capture with manual input

Some opportunities for manpower reduction

ROI: Tractor Factory


Return on Investment for the site Low volume Low waste High product unit price Steady energy usage Significant quality monitoring

Automated data capture with manual input

Few opportunities for manpower reduction

Costs

OEE system £ 100,000

Internal manpower allocation £ 20,000

Total £ 120,000


0.01% improvement

Product sales value £ 12,000,000

£ 12,000


Sales revenue per unit £ 100,000

Cost of Waste £ -

£ -

Manpower £ -

£ -

Energy £ -

£ -

Quality management £ -

£ -

Total £ 12,000


Summing Up


• The drive to increase energy efficiency will continue

• Better management of energy usage will be required

• Better management will require better information• Good information is provided by more & higher

quality data• Restrict energy usage to what is required to

PRODUCE• OEE systems with Energy Monitoring will deliver

the information required

Technology

Manufacturing Conference Workshop 3 - OEE and Energy