Page 102 - TPM A Route to World-Class Performance

The TPM improvement plan 83

Credit hours generated per piece

Variable cost per credit hour Y = €27.50
Direct labour cost per price X x Y = €0.5106
Current OEE D = 63.1%
Number of pieces produced E = 2498
Best of best OEE F = 87.7%
F
Number of pieces produced at OEE = 87.7% G = - x E = 3472
D
Difference in pieces produced G - E = 974
Potential weekly savings = f0.5106 x 974 = f497
Potential annual savings (45 working weeks) = €22 365
An alternative to increasing the output potential of 974 pieces per week at
best of best is to achieve the same output of 2498 pieces in less time:
Loading time (total available time) was 1980 minutes (33 hours) to produce
2498 pieces at OEE of 63.1 per cent.
Loading time to produce 2498 pieces at best of best OEE of 87.7 per cent
would be:

63.1 x 33 = 23.74 hours = 1425 minutes
87.7
Time saving = 1980 - 1425 = 555 minutes = 9.25 hours
Simple OEE calculation
If the foregoing 'live' example seemed a little complicated, let us take the
following very simple example to illustrate the principles.
Data

0 Loading time = 100 hours, unplanned downtime = 10 hours
0 During remaining run time of 90 hours, output planned to be 1000
units. We actually processed 900 units
0 Of these 900 units processed, only 800 were good or right first time
What is our OEE score?
Interpretation
Availability: actual 90 hours out of expected 100 hours
Performance: actual 900 units out of expected 1000 units in the 90 hours
Quality: actual 800 units out of expected 900 units
CaZcuZations

Planned run time u = 100 hours
Actual run time b = 90 hours
(owing to breakdowns, set-ups)