OEE For Operators - Overall Equipment Effectiveness - The Productivity Development Team - 1563272210 - Productivity Press 1999

I SHOPFLOOR S E R I E S
O 1999 by Productivity, lnc

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Cover by h'lnrk t;Veiirstei~t

Cover illnstratioo by Gar) Ibgaglia
Page design and composition by William Ii. Bn~nson,Typography Services
Gmphics by Guy Buster, Lee Smith. and Hannah Borrrier
Printed and botrnd by h,lalloy Lithographing, Inc. ill tire United Stales of Arnerica
Libra? of Congress Cataloging-in-Publicatiort Data

O E E for operators : ovcrall equipment cffectiverress I created by the f'roductivity
Developnient Team.
1'. c1n.
Includes bil~liograplricalrerereoces.
ISBN 1-56327-221-0 (dk. psper)
1. Ibtal productive mainteni~ace. 2. lrrdustrial equiprnerrt.
1. Productivity DeveIopment'Tcam (Productivity f'ress)
TS192.032 1999
658.?7-dc21 99-3532
CIP
Publisher's Message
Getting Started
The Purpose o f This Book xv
What This Book i s Based On xv
Two Ways t o Use This Book xvi
How t o Get the M o s t Out o f Your Reading xvii
Overview o f the Contents xix
Chapter 1.About TPM and OEE

Chapter Overview
What Is TPM?
What is OEE and Why Ls It Important?
Quantity Over Time is Only Part of OEE
Effectiveness Focuses on the Equipment, Not the Person
The Purpose of Measurement Is Improvement
The Role of t h e Shopfloor Team in Using OEE
In Conclusion
Summary
Reflections
I CONTENTS
Chapter 2. Understanding Equipment-

Related Losses 9
Chapter Overview 9
Losses Reduce Overall Equipment Effectiveness 10
Visualizing OEE and the Losses 12
Availability
Performance
Quality
Availability: Downtime Losses
Failures and Repairs
Setup Time
Other Losses to Avaiiabiiity
Performance: Speed Losses
Reduced Operating Speed
Minor Stoppages
Quality: Defect Losses
Scrap and Rework
Startup and Reduced Yield
In Conclusion
Summary
Reflections
Chapter 3. Measuring OEE

Chapter Overview
Closing the Feedback Loop
Collecting OEE Data
Defining What t o Measure
Making Data Collection Simple
Processing OEE Data
The OEE Calculation
Storing OEE Data
Reporting OEE Results
In Conclusion
Summary
Reflections
Chapter 4. Improving OEE
Chapter Overview
5 Why Analysis
Autonomous Maintenance
Focused Equipment and Process Improvement
Quick Changeover
Stage 1: Separate Internal and External Setup
Stage 2: Convert Internal Setup to External Setup
Stage 3: Streamline All Aspects of Setup
ZQC (Mistake-Proofing)
Poka-Yoke Systems
P-M Analysis
In Conclusion
Summary
Reflections
Chapter 5. Reflections and Conclusions

Chapter Overview
Reflecting on What You've Learned
Opportunities for Further Learning
Conclusions
Additional Resources on TPM, OEE, and
Equipment-Related Losses
Training and Consulting
Packaged Education and Support
Conferences and Public Events
Newsletter
Website
About the Productivity Development Team

Smoothly operating equipment is critical for inanufacturing today.
Most processes use machines to add the value c~istornerspay for.
In an environment that is more competitive than ever, factory
machines have to work dependably to supply products \vhen the
custo~iierneeds them. Yet factories eveqwliere are plagued with
machine problems of one type or another. Tlie conipanies that are
pulling ahead in the production race are those that understand
their equipnient problems and take steps to eliminate them. The
key to this understandiiig is overall equipment effectiveness.
Overall equipment effectiveness (OEE) is a measure that shows
how well the equipment is running. It indicates not just how
many procluets tlie machine is turning out, but how much of the
time it is actually working-and what percentage of the output is
good quality. Because it reflects these three important things,
OEE is an important indicator of tlie healtli of tlie equipment.
Tlie condition of the equipment isn't just a maintenance issue
anymore. In Total Productive Maintenance (TPM) approaches,
equipment operators help prevent equipment problems through
their knowledge and familiarity with the machines. Operators also
monitor the machine conclitions used for calculating OEE. This
book is intended to share basic learning that will help you partici-
pate effectively as your company applies OEE and begins to
reduce equipment-related losses.
Chapter 1 lays a foundation with basic definitions related to Total
Productive Maintenance and OEE. You \sill learn why it is
important to track effectiveness rather than effieiency..~hapker2
introduces the three elements of OEE and their connection to
key types of equipment-related losses-problems and wastes that
reduce a macliine's effeeliveness. This is a basic framework that
can be adapted to measure and begin to improve equipment
problems in many different industries."
"'Tlie OEE calciilation and loss framework used in this Look relntes most directly to
discrete parts menufacturers, ratlrer than process industries, wliicii face sliglrtlg diffcr-
sec Sozuki, cd., TFM in
en! issues, For inore or1 ineasoremcot in process ind~~stries,
Process liidrrstries (Productivity, 1994).
PUBLISHER'S MESSAGE
Chapter 3 offers a step-by-step ovenliew of the process of doing the

OEE calculatiori." One basic aspect is sliopfloor involvernent. It's
important for date to be collected on tlie shop floor and turned
into information for use on the shop floor-not confined to an
ofice or i~iforniationdepartrnent. This cliapter also dcscrilies how
to define what to measure and how to collect and process OEE
data. It gives examples of different i~iforniationdisplays that OEE
data can generate (computer software is helpful for this).
Cliqitcr 4 ktalks about how to respond to OEE information to fix
the problems. It introduces thc 5 Why nietlioil, autoriomous niain-
tenance, focused equipment iniprovement, quick changeover, niis-
take-proofing, and 1'-h4 analysis. Chapter 5 lielps you review your
learning and suggests :additional resources for exploring key topics.
It is imiioriant to remember as you read that this material is a
general oricniation to a coniplex topic. Application and master).
of overall equipment
. . effecliseness often requires a deeper under-
r
stancling of the production niechanistn I lie process of tising
3
OEE is best supporfcd by experienced consultants and trainers

who can help you tailor it. to your company's specific situation
and address issues that may come up.
This book incorporates a number of features that will lielp you
get the niost from it. Each cliapter begins with an ovenkw of tlie
contents. Tlie book uses many illustrations to share inform.d t'lon
and examples in a visual way. Icon sy~iibolsin the margin flag key
points to reniember in each section. And "Take Five" questions
built into the text provide a framework for applying wliat you've
learned to your own situation.
One of the niost effective ways to use this book is to read and clis-
cuss it nith other eniployccs in group learning sessions. We have
deliberately planned the book so that it can be used this way, with
chunks of information that can be covered in a series of short ses-
sions. Each chapter includes reflection questions to stimulate
group discussion.
"Somc tmditior~al;ippro"clies to OLL use ;I two-part f o r n ~ ~ ~forl ; icaleiilati~igperfor-

mance thnt uses cycle time ;IS an elenient. Altlxn1g11the two-part for111111ayields
infori~~ation
tlmt III~IJ.be ii&l lor a d r a ~ ~ a~mlysis,
cc most teaiirs just starting out wit11
OEE d o not need that level of detail. For llmt reason, this bonk follows n sirr~plcr
;~ppm;tch,~ ~ s eby
r l Arno Koch of illom Co~~s~tlt:irrcy in his OEE 7bolkit softure,
.
wl~ichcoillpares aetlrd output to the potcl~ti;dotllpilt if tile III? cI m' e were
performing at its top speed.
PUBLISHER'S MESSAGE
1
This book is especially lielpful when used with the O E E Toolkit
sofhvare packagc (Productivity, 19993, \vliicli was developed by
Arno Kocli of Bloni Consultancy to meet liis clients' need for a
simple and flexible approach to O E E tracking. Tlie O E E Toolkit
is an easy-to-use application for capturing OEE data and creating
a wide range of reports from it. Tlie nianrial that comes with tlie
software teaches a people-centered approach to OEE measure-
ment and reporting
, -
I lie overall eqtiipinent effectiveness measure is simple and uni-
versal. It is used to measure and i~iiproveequipment conditions
in companies all over tlie world. We hope this book will tell you
wliat you need to know to rnake your participation and use of
OEE active and personally rewarding.
Acknowledgments
The development of OEE for Operators has been a team effort,
and we greatly appreciate tlie eoritribution of everyone involved.
The book was motivated by tlie approach to OEE developed by
Arno Kocli of Blo~riConsulta~icvand further s~ipporteclby Itis
OEE 7bolkit softwre package. content aclvisors included Jolin
Jacinto of Amtes and Bob Strout of Lemforder Co., as well as
Productivity consultant Jolin Monaco and ?'PA4 Report editor in
chief Barry Sliulak.
Lorraine h4illard of Productivity managed tlie prepress produc-
tion and nianufacturing, with editorial ;~ssistancefrom Pauline
Sullivan. Graphic illustrations were created by Guy Roster
and Lee Smith, with cartoon illuslrations by Guy 130ster ;ind
I-lannali Uonner. Cover composition was by Mark Weinstein
of Produciivity, wit11 cover ill~~slration
by Gary Ragaglia of
Tlie Vision Group. Page composition was done by
William 1-1. Brunson Typography Services.
1 PUBLISHER'S MESSAGE I
Finally, the Productivih staff wishes to acknowledge the good

work of the many people who are in the process of implement-
ing Total Productive Maintenance and using OEE in their own
organizations. We welcome your feedback about this book, as
well as input about 1 1 0 ~
we can continue to serve your iruprove-
ment efforts.
Steven Ott
President
Karen Jones
Productivity Developnzent Team
xiv
The Purpose of This Book
OEE for Operators was written to give you the infonrlution you need
Key Po,n, fo participate in using the overall equipment efecti~wms(OEE)
measure in your workplace. You are a valued member of your com-
pay's team; your kno\vleclge, support, ancl participation are essen-
tial to the success of any major effort in your organization.
T h e paragraph you have just read explains the author's purpose
in writing this book. It also explains why your company may wish
you to read tliis book. But why are you reading this book? This
question is evcn more important. What you get out of this book
largely depends on your purpose in reading it.
You may be reading this book because your team leader or man-
ager asked you to do so. O r you may be reading il because you
think it will provide information that will help you in your work.
By the time you finish Chapter 1, you will have a better idea OF
how the information in this book can help you ancl your compa-
ny measure equipment-related losses and plan how to improve
equipment effectiveness.
BILXGROYUB
What This Book Is Based On
This book is about an approach for measuring equipment-related
losses that limit the effecti\~enessof manufacturing equipment.
Many of the ~netliodsdiscussed here were originally developed
at conipanies working with the Japan Institute of Plant
Maintenance, a pioneer in the a p p r o d i known as Total
Productive Msintenance, or I'PM. Since 1988, Productivity, Inc.
has nladc information about TPM approaclies available in the
United States through publications, events, training, and consult-
ing. Today, top conlpanies around the world are implementing
TPA4 to stistain their competitive edge.
G E T T I N G STARTED
Figure 1-1.Two Ways to Use This Book
O E E for Operators clraws on a wide variety of Productivity's book

and training resources. Its aim is to present the main conccp~s
and techniques of 'I'IJPI and overall equipment effectiveness in
a simple, illustrated format that is easy to read and understancl.
This book also co~iiplcrnentsthe O E E %ofkit sofhvare package as
a way to build a shared ~tnclerstandingamong workteam mcmbcrs
before they begin using OEE.
Two Ways to Use This Book

There are at least hvo ways to use this book:
I. As the reading inaterial for a learning group or stttdy group process
within your company.
2. For learning on your own.
Your cornpany may want to hold a series of learning group discus-
sions based on this book. Managers may assign the book for back-
ground reacling when the company uses the O E E Toolkit sofhvare
package. Or, you may read this book for inclividual learning with-
out forn3al group discussion.
G E T T I N G STARTED
How to Get the Most Out of Your Reading

Becoming Familiar with This Book as a Whole
There are a few steps you can follow to make it easier to absorb
h e information in this book. Take as much time as you need to
become familiar with the material. First, get a "big picture" view
of the book by doing the following:
I. Scan the Contents (pages v tlirottgli 141)to see liow OEE [or
Operators is arranged.
nil. $ 0 SIPP.
2. Read the rcst of this section for an oven,iew of the book's contents.
3. Flip through the book to get a feel for it5 style, flow, and design.
Notice liow the cliaptcrs are structured and glance at the pictures.
Becoming Familiar with Each Chapter
After you l ~ w ae sense of the structure of OEE for Operc~tors,pre-
pare yourself to study o n e chapter a t a time. For each chapter, we
suggest you foiiow these steps to get h e mosl out oFyour reading:
1 Read the "Cllapter Otervieic" on tlie first page to see where the
chapter is going.
new to steps
2. Ylip through the chapter, looking at the way it is laid out. Notice tlie
bold headings and the key points flagged in the margins.
3. Now read tlie chapter. How long this takes depends on nhat you
already know about the content, and what you are trying to get out of
your reading. Enhance your reading by doing tlie follotvitrg:
Use the niargin assis15 lo help you follow tile flow of inforrnation
If the book i s your own, use a liighligltter to mark key inforrnation
and answers to your questions about the material. If the book is not
yoiir own, take notes on a separate piece of paper.
Ansner the " ' M e Five" questions in the text. These will lielp
you absorb tlie infor~natio~~
by reflecting on how you migltt apply
it at work.
4. Read tlie "Chapter Surnmar)." to confirm what you have learned. If
you don't remember something in ihe suliimary, find that section in
the chapter and review it.
5 . l'inally, read tlie "Rcflcctior~s"qwstions at the end of tile cl~apter.
Think about tliese questions and write down your a n s u m . I+id an
expcricnced person to ask if you find a topic conft~sirtg.
GETTING STARTED
Figure 1.2. Giving Your Brain a Framework for Learning
How a Reading Strategy Works

\Vhen rcadine a book.
0 ,.
aeonle tliink tliev siiould start with
8
tlie first word and read straight tlirougli until tlie end. 'niis is not
usually tlie best way to learn from a book. l'lie steps de~cribcrlon
page sv are a strategy for making your reading easier, more fun,
and more effective.
Reading strategy is based on two simple points about the way
people learn. 'The first point is thk: It is difficult for your bruin to
absorb rlew infonilcrtio~lif it does not h a ~ va str~ictureto place it
in. A?an analog);, imagine trying to build a house \vitlioul first
putting up a framework.
Like Bnilding a frame for a liouse, you can give your brain a
framework for the new inforru;~tionin tlie book by getting an
overview of the contents and then flipping tlirough the materials.
Withi11 e:~clich;ipter, you repeat this process on a sniallcr scale
by reading the overview, key points, and headings before reading
the test.
'The seco~itlpoint about learning is this. It is (I lot easier to lean1 if
you take in the infonncition one layer a t a time, instead of frying to
ubsorh it all at once. It's like finishing the nails of a liouse: First
you lay do\vii a coat of primer. \\'lien it's dry, you apply a coat of
paint, and later 4 final finish coat.
GETTING STARTED
Using the Margin Assists

As you've noticed by now, this book uses small images callecl mar-
girt assists to help you follow the iriforniation in each chapter.
?.
I here are six types of margin assists:
Background
Information Sets the stage for what comes nest
Key Term Defines important words
Key Point I-liglllights irnporiant ideas to remember
Example W p s you understand the key points
New Tool Helps you record data or apply

learning
How-to Steps Indicates the sequence for

improvement action
Overview of the Contents

Getting Started (pages xv-xx)
This is the section you're reading now. It esplai~isthe purpose of
OEE for Operators and how it was written. T h e n it shares tips for
getting the most out of your reading. Finally, it presents this
overview of each chapter.
1 GETTING STARTED 1
Chapter 1.About TPM and OEE (pages 1-8)

Chapter 1 introduces and defines 'Total I'roductite i\ilaintenance
and overall equipmen1 effecti\seness. It explains reasons ivhv O E E
is an important measure to track and describes the role of the
shopfloor teani in collecting and using OEE clata.
Chapter 2. Understanding Equipment-Related Losses
(pages 9-23)
Chapter Z describcs the three elements of OEE and links them to
the main types of losses that lower equipment effectiveness.
Chapter 3. Measuring OEE (pages 25-38)
Chapter 3 offers guidance in measuring overall equipnient effec-
tiveness, incl~rdingcollecting and processing data arid using the
resulting information on the shop floor. It tells about defining
what data to lucasure for the OEE calculation, doing the calcula-
tion, and storing the data so you can report the information in
cliffcrent ways.
Chapter 4. Improving OEE (pages 39-56)
Chapter 4 covers essential approaches for improving overall
equipment effectiveness. 'Topics include 5 Why analysis, the
a u t o ~ ~ o ~ n maintenance
ous and focused improvement pillars of
TPR4, specific approaclies for setup and defect losses, and the
advanced P-M analysis approach for chronic problems.
Chapter 5. Reflections and Conclusions (pages 57-63)
Chapter 5 presents reflections on and concl~isionsto this book.
It also describes opportunities and specific resources for further
learning about OEE, TPh.1, atid related tecliniq~ies.
I CHAPTER 1
What Is TPM?
Overall ecjuipment effectiveness (OEE) is a key measurement in
the in~provementapproach called Total Productive biaintenance
(TPM). Before you begin learning about OEE, it is useful to
understand a little bit about TPM.
TPM is a companywide approach for improving the effectiveness
Key Point arzd longevity of machines. It is key to lean manufactitring because
it attacks niaior wastes in operations. Developed origi-
nally to hclp a supplier meet the stringent recjuirements of the
Toyota Production System, TPM is used today in companies
around the world to improve the capability of their equipment.
TPhiJ has u number of waste-reduction goals, including equipment
,, restoration and muintencrnce of standurd operating conditions. TPM
methods also improse equipment systerns, operating procedures, und
nzainterzance and design processes to asoid fiture problems.
The main strategies used in TPM are often referred to as "pillars"
that support the smooth operation of the plant. Figure 1-1 sum-
marizes the activities in eight basic pillars of TPM.
The overall equipment cffectiveness measure is important to
many of the TPM pillars, but is probably most important to tlie
first four pillars in the figure. This is because these pillars can
directly influence O E E througli daily operations, maintenance,
or improvenient activities.
ABOUT T P M A N D O E E
Activities
htonorno~~s Operator invol\w~rentin regular

maintenance cleaning, inspeclion, lulxication,
and learning about equipment to
mainlain basic conditions and spot
early signs of trouble.
Qu;tlity maintenance Aclitities to manage product

quditl; by nraintaining optirnal
operating cortditions.
hlethotl~Lo h r t e n the lead Lime
for getting nen cquipmenl o~llinc
and making tlcfect-frec l)rotlucts.
Safe9 training; integration of
safey checks, visual controls,
and mistake-proofing devices
in daily work.
ii planned program for cleveloping

crnployce skills and kno\\*ledgeto
srtpport TPh4 inrplen~enla t'ion.
I
Figure 1-1.Basic Pillars of TPM
CHAPTER 1 I
What Is OEE and Why Is It Important?
Mmufacturing companies are in business to make money, and
they make money by adding value to materials to make products
the customers want.
Most companies use rnacliines to acid valtic to tile prodrtcts.
To add value effectively, it is important to rtm the machines
effectively, with as little waste as possible. O ~ ~ e r aequipment
ll
effectiveltess is a nreasurerr~entused in TPM to indicate Itow effec-
tively ~nacltinesare running.
What do we mean by overall equipmenl effecti~~encss? ililany
people are familiar witli the idea of "efficiency," tvliich ~ ~ s u a l l y
reflects the cjuantity of parts a inachine or a person can prod~ice
in a cerlain time. OEIS is rlifferent from efficiency in several ways.
Quantity Over Time Is Only Part of OEE

A machine's overall effectiveness inclucles more than h e quantity
of parts i t can produce in a shift. When Jve measure overall equip-
ment effectiveness, we acconnt for efficiency as oilc factor:
1i krfomicriw?:a co~nparisonof the actuai outpttl with what llle
. ,
,, .., ..... -:i
Key Term
inachine should be producing in the same time.
In addition to performance, however, OEE inclt~dest\vo
other factors:
i\,.ailahility: a comparison of the potential operating time and the
Key Terms
time in which the machine is actually making products.
Qualit).: a coinparimn of the number of products made and the
nurnber of protllicts that meet the customer's spccificatioiis.
When you nrultiply perfortnance, a~,cdability,and qualify, you get
Key Poinr the overall equipment effectiveness, which is expressed us ct percent-
cige. OEE gives a complete picture of the machine's "health"-
riot jusl how fast it can niake parts, but how ~ u u c hthe potential
output was limited due to lost availability or poor quality (see
Figure 1-2). In Chapter 2 we will look more closely at these
Lhree elements and lio\v they work together.
A B O U T TPM A N D O E E
Effectiveness Focuses on the Equipment,

Not the Person
Unlike s o ~ n euses of tlie efficiency measure, OEE monitors the
machine or process that adds the value, not tlie operator's produc-
tivity. tV11er1we nmisure OEE, we look cit floiv well the equipment
K ~ PI o i n t
or process is working.
The Purpose of Measurement Is Improvement
Measuring OEE is not an approach for criticizing people. It is
strictly about improving the equipment or process. Used cis a17
,,, ,,,,, impartial daily sttapshot of equipment conditions, OEE prornotes
openness in information sharing crnd c~ no-hlarne cipproach in licin-
dlirzg eqni/1rner7t-reluted issues.
These key differences Iiighlight tlie importance of O E E as a bal-
anced measure that I~elpssupport improvement and profitability.
TAKE FIVE
Take five minutes t o think about these questions and t o write
down your answers:
Does your company currently measure each machine's efficiency?
Its available running time? Its quality rate?
CHAPTER 1
\ i
Rgure 1.3. Collecting Data and Turning it into Information
The Role of the Shopfloor Team in Using OEE

This hook is written for sou, the sfiofifloor einiiloyee, because vou
haw a big stake in the lzecrfth o/tlt; production kpipinent.
operators, you manage the ecluipment that adds value to the procl-
uci. When the ni;tchines break down, run too slowly, or produce
defects, you have to \vork longer ancl harder to rnake t ~ for p tlie
problems. 'Tlie pressure these problems creates is a good i~icentive
to measure diem ancl start improving them.
What$ more, your daily work ivit11 the machines puts you in the best
position to inonitor their probleins. You know how long a ~iiacliine
is shut down for setup, or w l ~ e minor
~i stoppages get in tlie way of
Iiigh-speed operation, or when you have to run slower to avoid
defects. In many cases, yokt already track the data that will be used
to calculate the overall equipment effectiveness.
Sharing in/orination on the plant floor through gruphs and discus-
sion is the heort of TPiV (see Figure I-?). '['lie OEE information
isn't rtseful when it is locked away in an office. 'The best approach
for applying OEE gives operators a leading role in gathering daily
data, coriverts the data into useful inforniation, and applies the
information in the workplace to support improvement.
1 A B O U T TPM A N 0 O E E I
* Overdl equipment cffcctivcncss (OEE) is a key mcasurc-

ment in h e irnprovcmcnt approach called Total Productive
Maintenance (TPM).
TPM is a companywide approach for improving tlie effectivc-
liess and longevity of niacliincs.
* 'TPM has a number of waste-reduction goals, including cquip-
ment restoration arid maintenance of standard operating con-
ditions. 'TPM rnclliods also irnprove equipment systcms,
operating proccdt~rcs,and maintenance ancl design processes
to avoid f ~ ~ t uproblc~m.
re
Overall cquiprncnt effectiveness is a rne:~surernent used in
TPM to ilidicate how effectively niachincs are running.
Overall equipment effectiveness is not the same as cfficiency,
wliich usually means liow many parts a macliinc or a person
can produce in a certain time. O E E is different in s e ~ ~ e m
wap.
l
Quuntity oiw tirile is only one port of OEE.
A macliine's overall effectiveness inclutlcs more than the
quantity of parts it can protluce in a shift. OEE inelucles
efficiency as one factor-perforttiatice-but also hvo other
factors-avnilabii and quality. Wlierr you intiltiply perfor-
mance, availability, and qttality, you get the overall cquip-
tnent effectiveness, wliicli is cxpresscd as a percentage.
Effcctitmess foctrses on the ecpiprrrent or process, riot
tlie person.
When we mcasure OEl:, we pay attention to how well
tlie cq~~ipnientor process is perfonnirig, not tlic operator's
productivity.
Tile purpose of rneosurement is irrtprovemcnt.
Used as an impartial dally snapshot of tlie cquipmetit, OEE
promotes openness in infornialio~isl~ariiigand a no-blame
approach in handling ccpipment-related isstlcs.
O E E FOR O P E R A T O R S
* T h i s book 1s written for you, [lie shopfloor employee,

because you have a big stake i n tlie liealtlt of tlie production
equipment. What's more, your daily work with the macliincs
puts you in thc besl position to monitor lheir problems.
* Sharing information on the plant floor tlirougli graplis and
discussion is tlie heart of 'TPM
REFLECTIONS
Now that you have completed this chapter, take five minutes
to think about these questions and to write down your
answers:
What did you learn from reading this chapter that stands
out as particularly useful or interesting?
* Do you have any questions about the topics presented in
this chapter? If so, what are they?
CHAPTER 2
I
Figure 2-1.Ideal and Actual Effectiveness
Losses Reduce Overall Equipment

Effectiveness
What makes machines less effective than they could be? Tlie
ideal, totally effective machine could run all the time (or when-
ever needed). It could maintain its maximum or standard speed
all the time. It \VOLII~never rliake defective products.
But most tiiachincs aren't ideal. They cannot run continuously.
They cannot maintain maxitnum speed withoi~tproblems. And
they make defects.
These problem are faniiliar forms of wask-they don't add value
to the products. They reducc a machine's effectiveness, as mea-
sured by the OEE. The conditions that cause these machine prob-
m e 7 ipim ferns are called equipnlent-related losses. Uilderstandirig the differ-
ent types of equipment-related losses will give you a framework
for applying O E E and participating in improvement activities lo
reduce the losses.
U h D E R S T A l . O I Y G E Q L I P h. E N T R E L A T-E D L O S S E S
l-
-
T h e equipment-related losses that are important for O E E are

linked to the three basic elements inertsured in OEE: availability,
performance, and quality. Traditional TPM approaches track
XI, Teln "Six Major Losscs":
hailability Perforrnrince: Quality:
.
Downtime losses Speed losses
E'1%'1 u m
Selup tinic
Minor stoppages
* Reduced operaling speed
Defect losses
* Scrap and rework
Starlnp loss
Altho~tglisome companies link i~iclivicluallosses to different O E E
categories, or add otlier losses that are especially significant for
their operations, this basic framework is a t~sefulstarting point
for many companies. Figcue 2-2 on tlie nest page gives a visual
image of tlie 1 1 9 in which these losses reduce the overall equip-
ment effecti\~enessof a machine.
I TAKE F I V E
Take five minutes to think about this question and t o write

down your answer:
What are some of the situations that keep your machines from
running at an ideal level of effectiveness?
CHAPTER 2 1
OEE = B/A x D/C x F/E x 100

~vailhbility ~erfdrmance Quality
Figure 2-2. The OEE Elements and the Equipment-Related Losses
Visualizing OEE and the Losses

Figure 2-2 makes it easy to see itow OEE is derivcd from the three
,,, elerrients, expressed as fractions. Each pair of bars stands for one of
the fractioris-availabiliQ (BIA), performance (DIC), and cpality
(FIE). 'The fractions arc often multiplied by 100 to trrrn them into
percentages or rates.
Availability
Bars A a d l3 represent availability. Unsclieduled time shortens
the total operating time,* leaving net operating time (A). But the
"Companies eouiit l l i i s t i ~ r i eill different ways, b u t for I l l i s discusniori, we sd,tract t l ~ e r e

periods from tllc t u t d upcrating lime.
12
-
U N U E H S T A N D i h G E Q U I P h l E h T - R E L A T E D LOSSES
~nacltineis frequently down during some of that time, usually due

to breakdo\vns and setup. Subtracting that downtinie leaves the
running time (B) in which the machine is making product.
Elanpie
Performance
Bars C and D represent perform;tnce. During the running time,
tlie machine co~tldproduce a target ouipit quantity (C) if it ran at
its clesig~ledspeed the whole time. But losses such as minor stop-
pages arid reduced operating speed lower tlic actual output (D).
acluul orrfprrt
LTxur~tple: -- 15,000 pmts = .60 prfinrrurrce (x 100 = 60%)
target otrfpuf 20,000 purls
tnanole
Quality
Bars E and 1' represent quality. Of t l x actual output (E), most
of the product is good output (F). But usually some output falls
short of the specified quality and must be scrapped or reworked.
Scrap is often produced during machine startup as well, lowering
the yield from the inaterials.
good outp~tt 11,760 parts
Exria~ple: -- = ."18 qualify (x I00 = 98%)
ucl~rrrloutput 12,000 parts
Figure 2-2 shows how losses to availabilih, perfont~unce,and

quality corrzpourzd to reduce the amount ofgood output CI n~uchine
H B point
~
cun produce during a shift. You can improve quality to raise tlie
quantity of good output a little bit-but the total quantity won't
rise draniatically unless you also improve both performance and
availability.
The fortnula at tlie bottoni of Figrtre 2-2 shows how lo ~nultiply
the three elements to gct the OEE.
The rest of this chapter will look more closely a1 the losses associ-
ated with these elcmcnts.
1 CHAPTER 2
I
Figure 2.3. Downtime Losses-Failures and Setup
Availability: Downtime Losses

Failures
Avuifubility is reduced by equipzrrent fuilures, tvliicli are a common
occurrence in many plants. RiIacliines used for prorluction gener-
ally have lots of moving parks and vario~tssubsyste~iisin wliicli
hiings can go wrong. Il'lien they do, the niacliine breaks down-
and stays down ~ ~ n trepairs
il are completed.
Many oftlie causes of ri~uclrinefi~iluregive wurrting signs before
Key P o i a t uctuully Irreuks. In Cliapter 4 1ve will look at liow
the rriuclri~~e
autonomous maintenance activities can help spot early trouble
signs in time to prevent major breakdowns.
Setup Time
rh~uilubilityis also reduced by the time it tulies to set up the
Key F o l n l tnuchine for u different product. hi addition to cliarigirig tlic value-
adding parts, a cliangcover requires some preparation or make-
ready. It may ~nvolvecleaning and making adjuskmcnts to tile
machine to get stable quality in the nest product. Too oftcn, it
also in~olvesrunning around to find tools, parts, or people. \lJe
will considcr an approach Tor retlucing sct~tptime in Cliapter 4.
I
Figure 2-4. Downtime Losses-Cutting Tool Loss and Startup Loss
Other Losses to Availability

Failures and setup losses were the original losses counted as
clow~itimethat recluces availability. Some cornpanies also track
other losses as downtime, depending 011d i a t losses they are
trying to improve. Cutting tool loss, startup loss, and time not
schednled for production are three other losses tracked as down-
time at some plants.
Cutting Tool Loss

Rreukuge of cutting tools during production cuuses unpluz~ned
Key P o i n t downtinze while the tool is replaced. Altliougli this is teclinically a
subset of failure ancl repair losscs, some companies track it sepa-
rately because of the potential for injury ancl product defects, as
well as the cost of tool replacement. Planned maintenance and
autonoriioi~smainienance activities help reduce these losses.
Startup Loss
Startup loss is traditionally incl~~ded as a defect loss, since its
essenie is the prod~tctionof defective products during startup.
I-lowever, sturk~ploss involves lost time until good pod~rction~cun be
K*Y point stubilized, so it is logical to st~btractit From available time as well.
15
I CHAPTER 2
Figure 2.5. Downtime Losses-Unscheduied Time
Time Not Scheduled for Production

In some con~panies,when rnacl1ines are stopped for meetings,
preventive maintenance, or breaks, the time is considered
"not schecluled" and is not counted in the availability rate (see
Figure 2-5). Other co~npaniesrecognize that even necessary
activities like tliesc reduce the available prodnction time. They
may clccide to consider time "not scheduled" as a downtime
loss that lowers the availabiliky rate.
Counting tmscheduled time as (I loss cut1 erzcotrrage creative ideas
Key Point
for reducing the loss-without eliminnting the uctivify. For esam-
ple, after measuring the produckion time lost from scheduled
breaks, employees at one company developed a plan to alternate
their breaks and briefly cover each other's stations.
U N D E R S T A N D I N G EQUIPMENT.RELATE0 L O S S E S
Likewise, some companies count offline time for preveniive

maintenance as do\vntirrie. Again, the point is to rcduce the tirue
loss, not to eliminate the activity.
TAKE F I V E
Take five minutes t o think about these questions and to write

down your answers:
How much time is lost each month due to failures and repairs in
your area?
How much time is spent each month on setup and make.ready in
your area?
Would you count other time losses for OEE purposes? Why or
why not?
CHAPTER 2
Performance: Speed Losses

Reduced Operating Speed
Machines often nrn at speeds slo~verthan they were designed to
nm. One reason for slower operation is unstable product quality
at the designed speed. In other cases, people don't realize h a t the
equipment is designed to run laster. We tvill look in Cliaptcr 3 at
how to determine speed for the OEE ealculalion.
Minor Stoppages
Minor stoppages are events that interrupt the production flow without
actually making the rnaclrine fail. 'I'ltey often occur oil autoruated
lines, for example witen product components snag on the conveyor
(see Figure 2-6).
Minor stoppages can make it impossible to run automated equip-
ment without someone to monitor it. Tllese stoppages may seem
like petp annoyances, but they add up to big losses a t many {dank.
U N D E R S T A N D I N G E Q U I P M E N T - R E L A T E D LOSSES
h h o r stoppages last only a few seconds, so we don't try to log the

time lost. Instead. we inclt~detlieni in r~erformancelosses that
reduce the product output. We will look at approaches for recluc-
ing speed losses in Chapter 4.
TAKE FIVE
Take five minutes to think about these questions and to write

down your answers:
Do you know the designed speed of the machines in your area?
Do minor stoppages happen in your area? What causes them?
CHAPTER 2
Figure 2-7. Defect Losses: Scrap, Rework, and Startup Loss
Quality: Defect Losses

Scrap and Rework
I'roducts that do not meet customer specifications are a familiar
loss. Clearly, scrap that cannot be reused is a waste of m;~terials.
Even when prodt~ctscan be reworked, the effort spent to process
them hvice is a waste.
Startup Loss
Many machines take time to reach the right operatiltg conditions at
Key
startup. f n the n~eatztime,they nay turn out defictive products
while operators test for stable output. Some companies simply
include this startup loss in scrap and rework; others single it out
as a specific loss to track*
"r\s nreiiticrncd in the section or1 dow~lirtieiosscs, same cortipnier also sir& out the
slnrlup period bcforc tlic first good prc~rliictns ;I special vpe of do\vntime to h c k .
UNDERSTANDING EQUIPMENT-RELATED LOSSES
Quality ~xoblemshappen when the optin~umconditions do not

exist at the moment \dien a person or machine works on the
product. In Chapter 4 we will look at a meihocl for preventing
defects by checking and controlling the necessary conditions.
TAKE FIVE

down your answers:
What is the defect rate for machines in your area? Do you think
this can be reduced?
Are startup losses a significant problem in your area?
O E E FOR OPERATORS
The ideal, totally effective machine would run all the time (or
n.henever needed), at maximum or standard speed, with no
quality problems. But most machines can't meet tlicse ideal
conditions. They can't run continuo~~sly or at maximum
speed; they experience minor stoppages, and tlicy make clefec-
tive parts.
Tl~eseproblen~sreduce a inachine's effectiveness, as nieasured
by the OEE. Tl'lic conditions that cause these probleins are
called eqrtipmerit-related losses. Linked to the three basic ele-
mcnls of OEE, they include the traditional "Six Major Losses":
AvailabiIity: 1'crfonn:rnce: Q.;ility:
Downtime losses Spceci losses Defect losses
Failures
Setup time
Minor stoppages
Reduced operatir~gspeed .
Scrap and icwork
St;~rtuploss
itltliot~ghsome companies link individual losses to different
O E E categories, or add otlier losses illat are especially signif-
icant for their operations, this basic framework is a i~scful
starting point.
O E E is derived from the tliree elements, esprcssccl as fractioris.
'i'l~efractions arc often multiplied by 100 to turn tlicni into per-
centages or rates. Losses to tlmc tliree elements rcdtice tltc
arriount of good output a machine can produce during a shift.
Downtime losses arfcct availability. Eailtires and setup time are
comnion losses tracked.
So~iiecompanies ;dso track otlier losscs as downtime, depend-
ing on what tlicy arc trying to intprove. Cutting tool lo~s,
startup loss, and time not scheduled for production are three
other losses son~etiniestracked as downtime.
Speed losses affect performance. h h o r stoppages and opera-
tion at reduced spced are often measured as speed losses.
r UNDERSTANDING EQUIPMENT-RELATED LOSSES
* Defect losses affcct quality. They include scrap and rework whcn
products do not meet customer specific. I'Ions.
Also, many macllines turn out dclcctive products during
startup while operators test for stable oulpttt. Some conipa.
e loss in scrap and rc\vork; others single it
nics i n c l ~ ~ dthis
out as a specific loss to track.
REFLECTIONS
answers:
Do you have any questions about the topics presented in
CHAPTER 3 I
A~Icasuringoverall equipment effccti\~enessis an important way
to monitor which losses are reducing the effecti\~enessof your
macliines. By tracking OEE 077 a regular basis, you car7 spot pat-
Point terns and influences that cause problenrs for production equipment.
Furthennore, niecrsuring OEE allows you to see the results of your
efforts to help tltc rnaclrines nm better. This chapter offers guidance
in measuring overall equipment effectiveness, including collecting
and processing OEE d a b arid reporting OEE results.
Closing the Feedback Loop

The process of measuring and applying OEE data should involve
the people who use the machines. As operators, you are more
familiar than otlier people with the equipment you operate, and
you have a slake in helping it run well. Therefore it's logical for
you to take part in collectirig tlie data for calculating OEIS.
just as irrzportant as being involved in clata collectiotl is receiving
Key point feedback on OEE results. An O f X chart cannot promote improve-
ment if it doesn't get back to the shop floor. OEE is living infor-
mation for improving equipment effective~iess.It shoulcl not be
buried away in an office.
Collecting OEE Data

Defining What to Measure
Before you can begin appl)>ingOEE, you need to decide what
mey poio, nrachine and prod~~ct datu you will rneasure for the calcufatiot~.
V i e Basic itenis you will measure are the losses that reduce avail-
ability, perforninncc, and quality. Tliese will vary from plant to
piant, b ~ the
~ tSix h4aior Losses described in Cliapter 2 give a
good framework to start from.
Downtime Losses
Do~vntimelosses (lost ai,c~ilclbility)crre rrwcrsured in units of tirnc
Key Po,ol (Figure $-1). They include
failure and repair tirnc
setup and adiustmenk timu
other time losses tli;it reduce availabililp
I MEASURING OEE
:ure 3-1.Failure and Setup Losses Are Measured as Time Losses
Failure and repair time i n c l ~ ~ d all

c s of h e downtime until the
rn:tclhe makes the nest good product. Some plants 1i1mpall
breakdotvns into one category; other plants may create several
categories to disti~tguishbet\veen different hpcs or causes of
rnachinc failures. The main t l h g is to standardize yow approach
so everyone can measure a failure event the same way.
Setup and adiustmcnt tifne includes the time between the last
good piece of procluct A and the first good piece of procluct B.
Other time losses include startup losses-similar to setup time
losses-and any nonsclted~~led time the team chooses to subtract
from the available time.
TAKE FIVE

down your answers:
What types of information about your machine's operation do you
currently track?
What types of downtime losses do you think your work area
would track for OEE?
CHAPTER 3
THE DESIGN GUY

SAID THIS WOULD RUN
1,000 PIECES P E R MINUTE.
BUT WE CAN ONLY RUN 827
MATTER WHAT
Output Reductions
Speed Losses
Speed losses (lost perfonncince) are rneclsured in units of product
Hey poin, output (see Figure 3-2). You probably already track your outpt~t
quantity. For OEE, you look at the difference behveen the actual
output and the potential output if the riiacliine consistently ran
at the designed speed, or at the standard opti~nuntspeed for
each procl~tct.
Speed losses include minor stoppages as well as reclucecl operat-
ing speccl. Altlio~~ghminor stopp"ges are "events" like mini-
breakdowns, they often occur so frecluently that it is not practical
to record the tin& lost during many frequent stoppages. For that
reason, many companies monitor minor stoppages by tracking
the output reduction they cause.
'lb comficlre the actual outbut rate (rnuchine s ~ ~ e ewill1
d ) the outbut
,,, ,,,,, rate at ;he designed speed,'pu have to know & z tthe designed &zx!
is. If tl~isspeed docs not appear in tiic macltine's docurnentakion,
you will nked to sel :I stari~ard,such as the fastest known speed at
wltich the machine can run (tliis may vary for different products).
MEASURING OEE
Percent
-
/ Defect Rate, Line C
Figure 33. Scrap and Startup Losses Are Measured as Defective Output Compared
to Total Output
Defect Losses
Defect losses (lost quality) are ulso measured in units of product
Key volnt output. 'This time, you are looking at the difference behveen the
total act~taloutput and the output that meets ccustomer specifica-
tions (sce Figure 3-3).
Defect losses include products that can be reworked as well as
outright scrap. i7irst-pass qualih is the goal.
Making Data Collection Simple
The purpose of tracking OEE is not to rliakc estra paperwork for
operators. Most likely yo11 arc alreztdy collecti~ig;I lot of the data
req~~ireclfor the O E E calculation. One ivell-clesigiled fonn cun
nlake it easy to log the OEE data as i ~ ~ eusl l other dutct you need
to register clurir~gdaily production.
CHAPTER 3
Figure 3-4 (pages 31-32) shotvs a sample data collection form. Its
creators used a simple approach for logging time losses by sliading
Elampis
the boxes on Side A to indicate where downtinie occurred.
Performance and quality data go on Side B.
TAKE FIVE

down your answers:
Which type of loss most affects your production equipment?
How would you change your current data collection forms to
include OEE data?
MEASURING OEE
Lure 3.4. Sampie Data Collection Sheet (Side A)

Source: A m Kach. Blom Consultancy. User's Guide for OEE Toolh~tsoftware IPmductivity, 19991
31
CHAPTER 3
:we 3-4(continued). Sample Data Collection Sheet (Side 6 )

SOUICB: Arna Koch. Blom Consultuncy. User's Guide lot OEE rootkit software (Productivity, 1999)
MEASURING OEE
Running time Actual output

I Good output
Net operating time Target output Actual output
I
Figure 55. The OEE Calculation and Its Elements
Processing OEE Data

Afier you collect data for OEE, you need to process tlic data to
turn it into useful information. This involves doing the calcula-
tion, and also storing your data in a way that allows you to clraw
different types of idomtation from it.
The OEE Calculation
OEE is calct~lateclby multiplying availability, perforniance, and
qudity (~nultiplieclby 100 to give a percentage rate).
OEE rote = i\wifubility x Perfarntanoe x Quulity x 100
Po'nt Let's review the equations for tlte individual elcrnents of OEE.
Kunnirrg tirile
=
A~~uiluhilih
Net ctperutirrg tirne
The running time is the net operating tirne minus the downtime
losses you rlccide to measure.
Actual output
Perforn~c~rtce
=
Torget ozrtput
For the OEE calculation, the target output is the quantity the
machine woulcl produce if it operated at its designed speed
during the running time (see Figure 3-5).
Qt~atity= Good output
Actuul output
CHAPTER 3
Storing OEE Data

O E E is mos1 valuable when p o collect
~ ~ data and do the calcula-
Lion on a regular basis. Tracking O E E at set intervals over time
allows you to see patterns that give ciues for in~provement.
It is irnportat~tto have a system in pluce to store your O E E data.
riel Pa~nt Manual charting of the basic rates is a good place to start, but it
limits the information you can pull out of the data. Sofhvare can
be a helpftd tool for automating the calculation and storing the
data for use in scvcral t ~ ~ p ofgrapl~s
es (see Figure 3-6).
I TAKE F I V E
Take five minutes to think about this question and to write

down your answer:
What kind of data storage system would you want to use for your
OEE measurements?
MEASURING OEE
Source: Sample data entered in OEE ibolkit software application (Am0 Koch. Blom Consullancy:
PIoducthify, 19991.
Reporting OEE Results

Sharing O E E information is critical for reducing equipment-
related losses. Operators-the people who are closest to the
ccpipment-need to be aware of OEE results. lieporting OEE
information on cliart~in the \vorkplace is a key to improving
future results.
T h e graph in Figure 3-6 s h o w a typical machine's O E E chart for
one sliift. By tracking this data over time, vou can see tlie OEE
trends for the machine, as shown in F'igur; 3-7.
The few pieces of data you collect to track OEE con give a lot of
,,, ,,,,, other information about the inuchine, unswering sttch questions as
Arc we improving over How arc we utilizing tlie
time? equipment?
What are the biggest down- What is our mean time
time problems? behveen failures, failure
When did an incident rate arid frequency, and
occur? mean time to repair?
1-low was quality over the
last month?
Figures 3-8 and 3-9 show sample reports from O E E data.

CHAPTER 3
Source: Sample data entered in OEE Toolhi! software appilcation ( A m Koch. Blom Consultancy;
Pioducfivity, 1999).
Figure 3-9.Utilization Chart

Sample data entered in OEE Toomil software application $ A m Kocll. Blom Coosultancy;
SOUICB:
Pmd~ctivity.1999).
MEASURING OEE
* Tracking OEE helps you spot patterns and influences of equip-

ment problenis 2nd allows you to see thc results of your
iniprovcment efforts.
0 Tlic process of measuring and applying O E E data should
involve tlie people who use tlie machines. Operators should
also receive feedback on OEE results.
* Before you bcgin applying OEE, you need to decide what lo
measure for tlie calculation. The basic i t e m you will measure
are the losses that reduce availability, performance, and qual-
ity. Tbcse will vary from plant to plant, but tlie Six Major
Losses provide a good starting Franietvork.
Downtime losses (lost availability) are measured in units of
time. They includc
hilurc and repair time
setup and adjustment time
other time losses that reduce availability
l Speed losses (lost performance) are measured in units of prod-
uct output. You will look at the difference behvcen the achial
output and the potential output if tlie machine consistently
mn at the designed spced or the st;~nclardoptimum speed for
each product.
* Defect losses (lost quality) arc also nieatured in units of prod-
uct output. Here you itre looking at Llic difference betwecn h e
total actual output and thc output that meets cusiomcr spcci-
ficat~ons.
The purpose of tracking OEE is not to 1ii;lke extra
A \vcll-designed form can make it easy to log the OEE data as
wcll as other data you rieed to register during daily production.
A f t e r you collect data for OEE, you need to process the data
to turn it into useful information. This involves cloing the cal-
culation, and also storing your data in a way that allows you to
draw diffcrcnt types of information from it.
O E E FOR O P E R A T O R S
OEE is calculated by n~ultiplyingavailability, performance,

and quality (tnuitiplied by 100 to gct a percentage rate).
OEE rate = rivuilability x Perfonnunce x Ql~ulilyx 100
Running tirile
=
ri~~uilubility
Net operrrtitig tirne
Actual output
Perforn~ance=
Target oufptrl
Good unlptrt
Q ~ r a l i h=
- Actual oritplrt
Tracking OEE at set intervals over time allows you to scc pat-
terns that give clues for improvement.
* It is important to have a system in place to store your OEE
data. Software can be helpful for autorriating the calculation
and storing the data for use in reports.
Reporting the results on charts in the workplace is a key to
improving fut~ircresults. The few pieces of data you collect
to track O E E can give a lot of other information about the
machine.
REFLECTIONS /
answers:
I CHAPTER 4
Figure 41. OEE Tells the Current State of the Equipment
W measure O E E to ~ilonitorthe condition of the cquipment-

similar to what a nurse learns about your condition when he or
she takes a temperature or listens io a heartbeat (see Figt~re
,. 4-1).
By comparing yesterday's or last \veers result, we can see whether
tlie condition has improved or become worse. As an operator, you
play an important role in 'TPM because you are in the best posi-
tion to monitor machine conditions during operation.
?'fie i~ointof usirlg the O E E meusure is to drive irnprovenient.
Key Point When you first begin tracking OEE, the rate mag be very low.
This is no1 totally bad, because it means there is a big opportunih
to improve. It is much easier to improve a low OEE rate than a
high one, since people tend to eliminate the obvious wastes and
problems at tlie beginning.
Standardization is the first step in improvement. 0 E E is a tool for
standardizing the way you measure effectiveness. This standard-
ized approach provides a baseline that helps you see where to
focus improverneiit efforts.
Some improvement mag happen just from the awareness that
develops when you start mcasuring OEE. Sustuined improve-
,,, tnent, however, requires a dediccited approach, with rrlunugerrtent
support. This cliapter explores several approaches that can help
improve OEE.
iMPROVlNG OEE
Answer I
2. Why did oil leak?- ---p The O-ring was cut.

/
Figure 4.2. 5 Why Analysis
5 Why Analysis
I-Iave you ever liad the esperience in \vl1ich someone fixed a machine
problem, but the same problem happened again after a sliort time? In
such cases. it often h~rnsout that people have been heating the syinp
s .
toms of the problem, but not dealing \\it11 its real, root cause. &ti
we address the root cause, the same problem will keep returning.
5 Why analysis is a useful tool that brings us closer to tlie root
cause. As its name suggests, 5 Why analysis involves repeatedly ask-
ing "~vhy?"about the problein (it could he more or less than five
times, depending on the situ;ition). This leads us to look beyond
the inirnediate effect-sucti as a broken drive belt- to see the
factors that might be causing tlie effect-st~cli as flaws on tlie
pulley that make the belt wear out too soon.
Figure 4-2 shows an esarnple of using 5 Why analysis.
TAKE F I V E

down your answers:
Is there a typical situation in your workplace where people "fix
the symptoms"? What do you think is the root cause, and what
would you do about it?
CHAPTER 4 1
Autonomous Maintenance
1
.:,;:[ .. ....
, ~,, .-,
~
$
Autor~ornousrnairtiertunce refers to activities curried out by
Key Term s/iopfkor terns in cooperation with muintenatlce staff to help stu-
b i k e basic equipment conditions and sl~otproblents early.
Autonomous maintenance is one of the pillars of TI'M It
changes the old view that operators just run machines and main-
tenance people just fix them. Operators liave valuable knowledge
and skill that can help keep equipment from breaking down.
In autonomous maintenance, operators learn how to clean the
equipment they use every clay, and how to inspect for trouble
signs as they clean (see Figure 4-3). They may also learn basic
lubrication routines, or at least how to check for adequate lubrica-
tion. ?'hey learn simple niethods to reduce contamination and
keep the ecjuipmcnt cleaner. Ultimately, they learn more about
the various operating systems of the equipnlent and may assist
technicians with repairs.
Auiotlo~nousmaintenance activities arc like exercise and regular
KBY P ~ I " ~ I~eulthcheckups for machines. Along with preventivc mainte-
nance, they help raise O E E by lilaititaining proper operating con-
ditions, and stabilize it by detecting abnormalities before they
turn into losses.
IMPROVING OEE
Step 1. Conduct initial cleaning and inspection.

Step 2. Eliminate sources of contamination and inaccessible
areas.
Step 3. Develop and test provisional cleaning, inspection,
and lubrication standards.
Step 4. Conduct general inspection training and develop
inspection procedures.
Step 5. Conduct general inspections autonomously.
Step 6. Apply standardization and visual management
throughout the workplace.
Step 7. Conduct ongoing autonomous maintenance and
advanced improvement activities.
Figure 4-4. Autonomous Maintenance Activities
Autonomous maintenance is. at its heart. a team-based activik.

Through the steps ofautonornous maintenance, shopfloor employ-
,,, ?,, ees work with maintenance technicians and engineers ton'clrd a
cotnnzort goal-more effective equipment (see Figure 4-4). 13y shar-
ing what they know, they can catch many o f the problems that
cause failures, defects, or accidents.
TAKE FIVE

down your answers:
Who performs basic cleaning and maintenance on the equipment
in your work area?
Do you think autonomous maintenance activities would reduce
equipment problems in your company? Why or why not?
CHAPTER 4 I
L
Figure 4.5 (a). Stabilizing with Autonomous Maintenance
Focused Equipment and Process

Improvement
Focused equipment clnd process ilnproventent is the ?'l'h/I pillur
K e y Tern
tliat deals most directly with irr~provingequipment-related losses. If
autonomous maintenance and preventive maintenance activities
are like esereise and health checkups, focused improvcnient is
like an intcnse workout tailored to develop strength in specific
m ~ ~ s cgroups.
le Autonomo~~s maintenance a ~ i dplanned maintc-
nance inlprove O E E Lo a certain level, then help niaintain basic
operating conditions to stabilize OEE. To raise OEE beyond this
stabilized level, companies apply focirsed improvement (see tlie
left and right sides of Figure 4-5).
In corttrcrst to the onrroine
w
activities of autonomous maintenance
w
Key P o i n t and planned maintenance, foc~lsedimproventent involses targeted

~rojectsto reduce specific losses. These projects are usuallv carried
out by cross-functional teams that include people with various
skills or resources an improvement plan might require.
Depending on the target, a focused i~nprovementteam may
include maintenance technicians, engineers, equipment clesign-
ers, operators, supcnkors, and managers.
I IMPROVING OEE
It's u good icleu for companies to attuin a basic "fit~~ess" level with
K e y Po,n, U U ~ O ~ I ~ I U O~nuinte~~unce
US cind pkunned tnaintenance before
launching focused intprovenlertt projects to address specific weak-
nesses. One reason is to eliminate routine problems (sporadic
losses) so yo11 liave a clear view of clifficult or more significant
proble~iis(chronic losses). Another reason is to avoid wing a
more expensive and time-consuming foc~~sed improvement
approach for problems that could be addressed tlirough less
expensive autononious maintenance or planned maintenance.
Focused improvement teams use a range of approaches to cut
equipment-relate losses. They may use 5 Why analysis as a start-
ing point, but there are also approaclies that addrcss specific
types of losses, such as setup losses and scrap. We will review
approaches that deal directly with shortening cliartgeover time
arid reducing losses froni product defects. Finally, we will look
at P-bl analysis, an advanced version of root cause analysis that
is used in focused improvement and quality maintenance.
I CHAPTER 4
Before SMEO
Internaland Convert internal Streamline
external setup internal and all aspects of
setup
Figure 45.The Three Stages of SMED
Quick Changeover
Setup and adjustment time is an iniproveiiient target for OEE,
since it reduces tlic time in which the machine is available to
make products. Sliigeo Sliingo, who helped develop key aspects
OF the Toyota Production System, invented a changeover irnprove-
ment system called single-minute cscliange of die," or SMED.
This system gives a threestage approacli for shortening setup
(see Figure 4-6).
Stage 1:Separate Internal and External Setup

In developing S h E D , Sliingo analyzed changeover operations to
detertiline why they took so long. He recognized that changeover
activities co~tlclbe divided inlo two types:
ftltcmrtl setup: setup operations that can be done only with the
cqt~ipnientstopped
* Externul setup: setup operations that can be done while the
iiiacliine is working.
The problem a t most contpanies is that internal c~ndexternal setup
operations ure rnisecl together. This means that things that could
be done while the machine is running are not done until the
machine is stopped.
'Nirned lor ihc goal of cnri~pletir~g

cl~ai~getrver
witlii~~
;I single-digit ilwilber of niio-
or lciver.
utcs-9 iiii~~tilcr
46
IMPROVING OEE I
Stage I of Shingo's SMED system i r l ~ ~ o i sorting

~ e s out the external
setup oparations so they can be done before the iitacl~ineis stopped.
This alone can reduce s e t u f ~time bv 30 to 50 /~erceitt.Typical
stage 1 activities include
'liansporting tools and parts to the macliine in advance
Confirming that escl~a~lgeable
parts are functional before the
cl~angeoverbegins
Stage 2: Convert Internal Setup to External Setup

T h e next step in the SkIED system is to look again a t activities
clone with the mnchine stopped ancl find ways to d o them while
the n i a c h i ~ t cis still active. Typical stage 2 improvements inclilde
Preparing operating contliiions in adranee, sttch as heating a die
mold with a preheater instead of using trial shots of hot material
Standardizing functions sue11 as die height to elinhate tile need
for adjustments
Using devices tlmt autonmticallp position the parts witliout II~GI-
suremcn t
Stage 3: Streamline All Aspects of Setup

This stage attacks remaining setup time, and includcs these
approaches to shorteii internal setup:
Using parallcl operations (two or more people working together)
Using quick-release cl;t~npsinstcad of nuts and bolls
Using numerical settings to eliminate trial-and-error adjustments
TAKE FIVE
Take five minutes t o think about t h e s e questions and t o write

down your answers:
How long does a typical changeover take in your work area?
Can you list the changeover steps that couid be performed while
the machine is still running?
Who would you want to have on a setup improvement team,
and why?
I CHAPTER 4
Source inspection
+ 100 percent inspection
+ Prompt feedback and action
+ Poka-yoke systems
I
Figure 4-7. The ZQC System
ZQC (Mistake-Proofing)
The quality rate is an element of OEE. When the equipment that
sliould add value to a product makes a defect instead, it wastes
valuable materials and energy-and it can Iittrt tlie company's
reputation if tile defective item reaches a customer. Therefore,
quality is an important clement of a machine's effectiveness.
Many companies think that they are addressing qualiky issues
through inspection that catches defects before they leave the fac-
tory. However, inspection after {~rocessingcloes not elimincrte
defects, a r ~ ddoesn't necessc~rifycatch tflern all, either. Quality can-
not be "inspected in." It t i i ~ s be
t Built into the process.
Shigeo Shingo carefully analyzed the causes of defects in manu-
fach~ringplants and found that random errors were often the
most difficult causes to control. To prevent hese errors, he devel-
oped a mistake-proofing system known as Zero Quality Control
BI erm
(ZQC, or "quality control for zero defects").
ZQC prevents defects by ccltching errors cmd other nonstanclctrd
conditions before they actuc~llyt t m info defects. It ensures zero
~ e Py o i n t
defects by inspecting for proper processing conditions, for 100
percent of the work, ideally jt~stbefore an operation is performed.
If an error is discovered, the process shuts down and gives itmne-
diate feedback with lights, warning sounds, and so on. TIie basic
elements of a Z Q C system are summarizecl in Figure 4-5.
I IMPROVING OEE
press
8 limit switch (poka-yoke)

detects correct
correct incorrect
I
Figure 4-8. A Poka-Yoke Example
Poka-Yoke Systems
Because people can rnake mistakes even in inspection, nristake-
proofing relies on sensing nzechanisms culled poka-yoke system,
which check conditions autonzatically and signul when problems
occur. I'oka-yoke devices include electronic sensors such as limit
switches and ~~hotoclectric eyes, as well as passive devices sucli as
positioning pins that prevent l~ackwardinsertion of a workpiece.
Figure 4-8 sho\tss an esantple of a limit switch used as a poka-yoke
system to prevent processing wlien the work is placed incorrectly.
Poka-Yokesystems may use counters to make sure an operation is
repeated the correct number of times
The key to effective mistake-proofing is determining when cntd
~ I t c r edefect-causing conditions arise and then figuring out how to
detect or prevent these conditions, every time. Sliopfloor people
have important knolt4edgc and ideas to share for developing and
implementing poka-yoke systerns that cheek every item and give
iniiiiecliate feedback on problerns.
TAKE F I V E

down your answers:
What types of actions or conditions can cause defects in your
process? At what point could you detect such an action or
condition?
Who would you want on a mistake-proofing team for your
process, and why?
CHAPTER 4
Figure 4.9. Chronic Problems Require an Advanced Approach
P-M Analysis
You may have experienced situations when you have to makc
repeated repnirs ind adjustments on a recurring problem 4 1 ure
4-9). When a problem conies back, it is usually because the sitrta-
tiori is not as simple as we originally thought it was. Our 5 Why
analysis may have followecl one factor to a clecpcr cause, but real
life is coniplex and interrelated-several factors often work
iogether to create a particular problem. P-Ad analysis is u tool for
systen~crticallyuncoiwing und testing all the possible factors that
could contribute to a cl~ronicproblem such as defects or failure.
The "P" in P-it1 analysis staiicls for "phenomenon"-the abnornial
event we want io conlrol. It also stands for "pliysical"-the perspec-
tive we take in viewing the plienomenon. "bI" refers to "mecha-
nism" and to tlie "4Ms"-a franiework of cai~salfactors to examine
(Macliine, MenAb'ornen [operator actions], Material, and IvIethod).
P-kl analysis is often spelled with a hyphen to clistinguisli it front
abbre\iatioils for preventive or plannecl maintenance.
The esscncc of P-&I Analysis is to look systetnutically at n f e y detail
Ksy Paint SO 110 physical phen~tnetzu,underlying condition, or causal @or is
missed. Although product clefecis and equipment failures are tlie
losses most often addressed, P-b1 analysis can be applied to any
loss that i~ivolvesan equipment abnormality.
IMPROVING OEE
P-kS analysis involves physically analyzing chronic losses accord-

ing to the principles and natural laws that govern Lliem. T h e basic
stepsof P-h/I analysis are
. ,
. . 1. Physiccilly analyzing chronic probierr~saccording to the ir~acltinc~s

oper-
.. .. . citing principles. This means understanding-in precise physical
now.to steor term-what happens \&en a n~achinetnalfunctions. T ' o do this, the
team riwst first understand the physical standard for normal operation.
2. Defining the essential or constituent corlclitions underiyiilg the abnoni~al
pltmomenc~.This means understanding at the physical level dial con-
ditions exist when the macliine doesn't work right. Examples include
the position of the work or the temperature ofa cult~ngtool.
3. Iderttifiirlg ali factors thtrt contribute to the phenort~cntrin terms of the
'fM fictrnovork. 'This means examining the problem from several
viewpoints to uncover factors the tcam might otlicnvise overlook.
After going through these steps, the team surveys for the presence
of the factors, then tests inqxoventerit actions. I~igures4-10 and
4-1 1 on the follo~vingpages are P-bI analysis tables. Figure 3-10
shotvs how infor~nationis developed at each step. Figure 4-1 1
d~ow 1io1v the team checks for factors and tests its improvements.
P-144 unulysis is considered an advanced tool becouse this level of
ney volnt "detective work" requires rnore time, resources, and expertise than
5 Why analysis. For these reasons, focused improvement teams
may save P-M analysis for complex or costly problems.
TAKE F I V E

down your answers:
Think of a familiar situation where a machine problem recurs.
What do people usually do about it? Can it be resolved with
5 Why analysis, or does it need more analysis?
CHAPTER 4
cure 4-10. P.M Analysis Tablo
52
I M P R O V I N G OEE
:ure 4-11. P.M Analysis Survey Results

O E E FOR OPERATORS
* \jVc measure O E E to monitor tlie condition of tlic equipment.

* The point of using the OEE measure is to drive improvement.
St~stainedimprovement requires a dedicated approach, with
management support.
\Vlien a problem returns, it often turns oirt that we have been
treating the symptoms of the problem, but not dealing with its
root cause. 5 \Vhy analysis is a useful tool tliat brings its closer
to the root cause.
*Autonomous maintenance refers to activities carried out by
shopfloor teams to help stabilize basic equipment conditions
and spot problems early. It cliangcs the old view tliat operators
just run macliincs and maintenance people just fix them.
Along with preventive mairitcnarice, a ~ ~ t o n o m o umainte-
s
nance activities lielp raise O E E by maintaining proper opcr-
ating conditions, and stabilize it by detecting ,tbnormalities
before they turn into losses.
Tlirougli tlie steps of autonomous maintenance, shopfloor
. . work with inaintcnancc technicians arid engineers
employees -
toward a common goal-more effective eqi~ipment.
f~ocuseclequipment and process improvement is the 'TPR4 pil-
lar that deals mod directly with improving equiprncnt-related
losses.
Autonomous niaintenance and preventive maintenance
improve OEE to a certain level, then help maintain basic opcr-
ating conditions to stabilize the OEE. To raise O E E beyond
this stabilized Ievcl, companies apply focused irnpro\wnent.
Focriscd improvement involves targeted projects to reduce
specific losses, carried out by cross-f~tnction;tlteams tliat
include people with skills or resources an improvement plan
might require.
IMPROVING OEE
It's good for companies to attain a basic "fitness" level with

autono~iiousmaintenance and preventive maintenance
before launching focused improvement projects to address
specific weaknesses.
* Foci~sedimprovement teams use a range of approaches,
including approaches that address specific e q ~ ~ i p m e n t -
related losses.
Setup and adjustment time is an improvement target for
OEE, since it reduces the time in which the machine is
available to make products.
Shigeo Shingo invented a changeover improvement system
called single-minute escliange of die, or SMEU. 'This sys-
Len1 gives a three-stage approach for sllortening setup:
Stage 1: Separate intcriial and exiernal setup
Stage 2: Convert internal setup to external setup
Stage 3: Streamline all aspects of setup
The quality rate is an element of OEE. Many conipanies
think h a t they are addressing quality issues through product
inspection that catches defects before they leave the factory.
In reality, liowever, this kind of inspection does not elimi-
nate defects.
To address random errors that cause defects, Shigeo Sllingo
cleseloped the Zero Quality Control (ZQC) mistake-proof-
ing system
m Z Q C prevents defects by catching errors and nonstandard
conditions before they turn into defects. It ensures zero
defects by inspecting for proper processing conditions, for
100 percent of the work, ideally just before an operation is
performed. If an error is discovered, the process shuts down
and gives immediate feedback.
h4istake-proofing often relies on sensing meclianisms called
poka-yoke, wliich check conditions antoniatieaily and signal
when problems occur.
O E E FOR OPERATORS
0 'l'lre key to effective mistake-proofing is determining \vhcn

and where defect-causing conditions arise and then figuring
out how Lo detect or prevent these conditions, every time.
0 fJ-lvl analysis is a tool for systematically uncovering arld Lest-
ing a11 the possible factors that could contribute to a clrronic
problem.
* T h e "P" in P-A4 analysis stands for "phenomenon"-the
abnormal event we want to control. It also stands for "phys-
ical"-the perspective we take in viewing the phenomenon.
"M" refers to "meclianism" and to the "4Ms"-a frametvork
of causal factors Lo esainine (Machine, Menl\%men [oper-
ator actions], Material, and Method).
T h e essence of P-I1.I Analysis is to look systematically at
every detail so no physical phenomena, underlying concli-
tion, or causal factor is rnissetl.
T h e basic steps of P-1\11 analysis are
1. I'hysically atlalying chro~ricproble~ns:~ccordingto the
machine's operating principles
2. Defining the essential or constiluent conrliliorrs unclerlying
the abnormal phenomena
3. Iclentifying all factors that contribute to thc phenomena in
ternis of h e Nvl fr:~mcwork
*After going through time steps, the team survevs for the
presence of these factors, then tests improvement actions.
* 1'-h4 analysis is an advanced tool because it requires more
time, resources, and expertise than 5 Wliy analysis.
REFLECTIONS
Now that you have completed this chapter, take five minutes to
think about these questions and to write down your answers:
out a s particularly useful or interesting?
CHAPTER 5
1
Figure 5.1. Reflect on What You've Learned and What Is Most Useful to You
Reflecting on What You've Learned

An important part of learning is reflecting on what you've learned.
Key Paint
Without this step, learning can't take place effectively. That's why
we've asked you at the end of each chapter to reflect on what
you've learned. And now that you've reached the end of the book,
we'd like to ask you to reflect on what you've learned from the
book as a whole.
Take ten mini~testo think about the following questions and to
write down your answers.
\\%at did you learn from reading this book that skands out as partie-
ularly useful or interesting?
What ideas, concepts, and tccllniques liave you learned that will bc
most useful to you as your company applies overall equipment
effectiveness and TPM? I-low will tlicy be itsefnl?
What ideas, concepts, and techniques have yot~learned that will be
least itseful as you apply OEE and TPM? \Vhy won't they be useful?
Do you liase any questions about OEE or 'i'l'M? If so, what
are they?
I REFLECTIONS A N D CONCLUSIONS
Opportunities for Further Learning

Here are some ways to learn more a b o ~ t overall
t equipment effcc-
tiveness and TPM:
l'ind other books, videos, or trainings on this subject. Several are
listed on the next pages.
now-to s~sp.i
lrivestig;~tesofhrare ll~atcan help you record OEE data for report-
ing.
* If your conipanp is already using OEE or implementing TPM, visit
other clepartments or areas to see how they are applying the ideas
;tnd approaches you have learned about here.
Find out lmw o t l m cotnpanies have applied O E E :incl used it for
irnpro\wnent. You can do this by reading ruagazines, newsletters,
and books that cover OEE, other aspects ofTPM, a d lean manu-
facturing, as \veil as by atlending conferences and se~ni~tars
that
share implementation esamples and pointers.
Conclusions
Overall equipment effectiveness is more than a set of measure-
m e n t steps. Used to its polential, it is a f ~ ~ n d a m e n tapproach
al for
improving the manufacturing process. We hope this book has
given yo11 a taste of how and why this approach can b e helpful
and effective for ~ O L in
I your work.
I CHAPTER 5
Additional Resources on TPM, OEE,

and Equipment-Related Losses
Training and Consulting
One of the best ways to learn how to use OEE is to apply it under
the gtiiclance of an espert. Trainers can bring vou through the
steps of implementing TPh4 and applying O ~ toEyour equip-
ment; experienced consultants can help you address specific
issues in your plant. Productivity, Inc. provides training and con-
sulting to support team-based TPh11 implementation.
Packaged Education and Support
Packaged education is not a substit~itefor training or iniplementa-
tion with an expert, but it can lielp prepare people for implemen-
tation, and give inforniation 011 specialized topics. Productivity,
Inc. offers a wide range of packaged education and support mate-
rials related to TPM, OEE, and equipment-related losses,
OEE Software
Arno Koch, OEE Toolkit: Pructiccrl Sofhre for Meusuring Overall
Equipment Effectiveness (Procluctivit): 1999)-A software package
originally developed by a TPhiI consultant and prograrnnier to
meet his clients' need for a cost-effective way to capture and
report OEE data. It features an easy-lo-use interface for eonfigura-
tion and data entry, a wide range of printable color-coded graphs,
and a complete user's manual with guiclance for defining what
to measure. A demonstration CD-ROM is avail;ible.
TPM and OEE

hlasaji Xajiri and lit~niioGotoh, i\utonornous Maintetlunce in
Sew1 Steps: Itnplementing TPAd for the Shopfloor (Procluctivit),
1999)-The most conipreliensive book available in English for
planning and managing a complete aulonomous maintenance
program. (Previously published as TPhd Implen~cntation.)
Japan Institute of Plant Maintenance, ed., Autonomons
Maintenance for Operators (Produchity, 1997)-h Sliopfloor
Series book on key a~rlonomousniaintenance activities. Topics
include cleaninglinspection, lubrication, containment of con-
taniination, and one-point lessons related to maintenance.
..
R E F - E C T I O. N-
S Ah0 C O N C L U S I O N S
J a p i Institute of Plant Rlaintenance, ed., TPM for Eveiy

Operator (Productivity, 1996)-This Shopfloor Series book intro-
cluces basic concepts of TPM, with emphasis on tlie six big equip-
ment-related losses and OEE, autonomous maintenance activi-
ties, and safety.
Kunio Shirose, ed., 'J'PM Tearr~Guide (Productivity, 1995)-A
Shopfloor Series book that teaches how to le;d '1'PM team activi-
ties in the tvorkplace. It includes a section on developing and pre-
senting project reports, and offers guidance w t h teaunwork issues.
Kunio Shirose, ?'PA4 for Wbrkshop Lectclers (Procluctivity, 1992)-
Describes tlie liands-on leadership issues ofrl'Phil iml~lenicntation
for shopfloor 7'PM group leaders, wit11 case studies and practical
examples to help support autonomous maintenance activities.
Cliarles J. Robinson and Andrew P. Ginder, imple~nentingTPM:
The North i\merican Espcrierlce (1'rocIuctisity, 1995)-Describes
how TPM fits into an overall manufacturing improveruent stmte-
gy for Western companies. A real-world perspective on what works
and what doesn't, and an eclucational tool lor middle and upper
managen~ent.Chapter topics include OEE, autonomous mainte-
nance, ancl iniplenlenting TPM in a u~iionenvironnicnt.
Naclii-F~~jikoshi Corporation, ed., 'iiaining for TPM: A
i\ilanrr{actrrring Success Story (Productivity, 1990)-A classic case
stucly oFTPM inipleiiientation at a world class manufacturer of
bearings (a winner of the prestigiotts I'M Prize). This is the corn-
pletc story of how tlw company eliminated 90 percent of equip-
ment-related losses in just LIiree years.
Kunio Shirose, et al., 1'-Ad i\nuiysis: An i\dvanced Step in TPM
In~plementcltion(Prodrtctivity, 1995)-Describes an effective
step-by-step nicthod for analyzing and eliminating recurring
ecpipment problems caused by multiple or complex faclors.
This is tlie best resource in English, for this aclvanccd problen1-
solving approach that was introduced in Chapter 4 of this book
Tokutaro Suzuki, ed., ?'PA4 in Process inclustries (Productivity,
1994)-Adapts TPM measures ancl activities for tlie specific needs
of process and large-equipniet~t-baseclindustries.
Tel-KI'raio, TI'ICI video series (distributed by Productivity)-
An inforniative ovenkw series in four programs: Introduction,
Overall Equipment Effectiveness, Preventive Maintenance, arid
i CHAPTER 5
l'redictive h4aintcnancc, plus a l%cilit:~tor'sGuide (includes

'fI'M Pilot l%wchart and overhead transp;~rencies).
Qulck Changeover
Productivih: Development Team, Quick Changeover fix Operutors
(~roductivhy,1996)-A Shopfloor Series book that describes
Shingo's three stages of changeover inilxo\wnent with examples
and illustrations.
Sliigeo Shingo, A Re)folutioriin i\/lanrr{act~rring:The SMED
System (Productivity, 1985)-A classic book for managers that
tells the story of Shingo's SklED Systern, descriltes ho\v to imple-
nlcrit it, and provides many cliangeo\w i~iiprovementexamples.
Zero Quality Controi and Poka-Yoke (Mistake-Proofing)

Productivity Development Team, i\~listuke-Proofi12g Operutors
(Productivity, 1997)-A Shopfloor Series book that clescribes the
basic theory behind mistake-proofing and introduces i~oku-yoke
systenis lor preventing errors that lead to defects.
Sliigeo Sliingo, Zero Quulity Control: Source Irlspection cmd the
l'o'oka-Yoke Systerri (Productivity, 1986)-A classic book for man-
agers and engineers descrilting liow Sliingo developed his Z Q C
approach. It includes a detailed introduction to poka-yoke devices
a ~ i dmany examples of their application in different situations.
NI<Sll%etory Magazine, ed., Poku-Yoke: In~provingProduct
Quality by Preventing Defects (Productivity, 1988)-A11 illustrated
book that shares 240 poka-yoke examples implemented at differ-
ent companies to catch errors and prevent defects.
Conferences and Public Events
Listening to implenientntion stories froiii otlier companies is a
great way to learn nc\v approaches to common issnes. Productivity
sponsors an annual TPM confcrencc, forl~nis011T1'M for the
automotive and process inclustries, and public training cvents on
OEF, and other TPM topics. The 3% day Mairitenance Miracle
workshop offers hands-on experience in implenienting team-based
a~~tonomous ~nainten;mceactivilics on maclrines at a host plant.
REFLECTIONS AND CONCLUSIONS
Newsletter
Lean Production Advisor-A Prod~ictivitypublication sharing the
lxst case stuclies :~ndproduct reviews related to implemcniation
of lean thinking and use of specific lean manufacturing approach-
es such as TPh4 and OEE.
Website
w\vtv.productivityi~~c.com-The Productivity, Inc. tvebsitc, wit11
inforniation on a full rnnge of products and services related to
T P M and OEE.
About the Productivity Development Team
Since 1979, Productivity, Inc. has been publishing and teaching
the world's best methods for achieving manufactnrlng excellence.
At the core of this effort is a team of dedicated product develop-
ers, including writers, instructional designers, editors, ancl pro-
ducers, as well as content experts with years of experience in the
field. Hands-on experience ancl nehvorking keep the team in
touch with changes in manufacturing as well as in knowledge
sharing and delivery Drawing from customer input, the team
plans and creates effective vehicles to sense the full spectrum of
learning needs in an organization.
Created by Arno Koch
Blom Consulfancy
Calculating overall equipment effectiveness is a crucial element of any serious commitment t o

reduce equipment- and process-related wastes through Total Productive Maintenance and other lean
manufacturing methods. Success with TPM, i n particular, depends on consistently and accurately
measuring machine and process performance. The OEE Toolkit: Practical Softwarefar Measuring
Overall Equipment Effectiveness provides detailed information daiiy on how effectively your machines
are running by quantiwng and visually highlighting where losses i n availability. performance, and
quality occur and how they impact overall equipment effectiveness. This calculation, made easy
by OEE Toolkit software. provides a powerful performance measurement on which you can base
systematic, focused improvement efforts.
Daily data collection and analysis often involves time-consuming and costly processes. Now.
Productivity's OEE Toolkit eliminates most of the burden of data processing. OEE Toolkit's emphasis
on visual management helps you get more information from collected data. You enter very small
amounts of data, OEE Toolkit does the calculations and analysis for you, and you get more informa-
tion about your machine performance then you ever thought possible.
You can't improve what you don't measure, and OEE is a powerful indicator of where your losses are
occurring. The fine-tuned, automated analysis of OEE Toolkit pinpoints where improvements can be
made that will significantly impact your bottom line.
ISBN: 1-56327-215-6 / 1999 / Order OEE-B9001
Free Demo Disk!

There are more incredible features-lists, graphs, and management
fools-than we can fully describe here. Call our Sales Department at
1-800-394-6868for your free demo disk today!
Key Benefits:
Functions as one universal tool-processes information about all machines through the
same interface
.Calculates losses i n availability, performance, and quality
Easy t o learn and use
Every operator can participate
Minimal input, maximal information
Lets you measure the performance of many machines
Operators learn more about their equipment, become more focused on the losses
Flexible to the needs of the user
Expandable to future needs
Key Features:
.Data-entry screen is designed for optimal speed and ease of use
Extensive data analysis gives you concrete information to pinpoint the causes of losses
Standardized set of reporting formats promotes effective comparisons of equipment effectiveness
Color-coded visual control features tell you instantly whether OEE is in your acceptable range
Standardized output lets you compare information because it is expressed uniformly i n every format
Many ways to analyze and Look at data, including
Bar/line graphs of OEE and its components for a specific shift or team for a specific day or period
* Barjline graphs of OEE trends over time
Bar graphs of OEE and losses i n effectiveness over time
' Pareto charts for time use categories, sorted by minutes, frequency, and average duration
Bar graph of specific time use categories over time
Commonly used reliability and maintainabilityindicators: mean time between failures, failure
frequency rate, mean time to repair, and failure rate
=Mountain graph of production output (good product, scrap, rework) over time
B a r graph of production andon status (in relation to user-defined target output for each
machine) for ati machines tracked during a period
* Pie chart of machine utiiization during a period
CONTINUE YOUR LEARNING WITH IN-HOUSE
TRAINING AND CONSULTING FROM
PRODUCTIVITY, INC.
Productivity, Inc. offers a diverse menu of consulting and training services t o help
. , . . .
vour comoanv imolement the conceots vou've read about i n this book. Whether
you need assistance with long-term planning or focused, results-driven training,
Productivity's experienced professional staff can enhance your pursuit of competi-
tive advantage.
Productivity, Inc. integrates a cutting edge management system with today's lead-
ing process improvement tools for rapid, measurable, lasting results. I n concert
with your management team, we will focus on implementing the principles of
Value-Adding Management, Total Quality Management, Just-in-Time, and Total
Productive Maintenance. Each approach is supported by Productivity's wide array
of team-based tools: Standardization, One-Piece Flow, Hoshin Planning. Quick
Changeover, Mistake-Proofing, Kanban, Problem Solving with CEDAC, Visual
Workplace, Visual Office, Autonomous Maintenance, Equipment Effectiveness,
Design of Experiments, Quality Function Deployment, Ergonomics, and more.
Productivity is known for catalyzing significant improvement-on the shop floor

and on the bottom line. Through years of repeat business, an expanding and loyal
client base continues to recommend Productivity to their colleagues. Contact us to
learn how we can tailor our services t o f i t your needs.
Telephone: 1-800-394-6868(U.S. only) or 1-503-235-0600

Fax: 1-800-394-6286
About the Shopfloor Series
Put powerful and proven improvement tools in the hands of your
entire workforce!
Progressive shopfloor improvement techniques are imperative for manufacturers
who want t o stay competitive and achieve worid class excellence. And it's the
comprehensive education o f alt shopftoor workers that ensures full participation
and success when implementing new programs. The Shopfloor Series books make
practical information accessible t o everyone by presenting major concepts and
tools i n simple, dear language and a t a reading level t h a t has been adjusted for
operators by skilled instructional designers. One main idea i s presented every two
t o four pages so that the book can be picked up and put down easily. Each chap-
ter begins with an overview and ends with a summary section. Helpfulillustra-
tions are used throughout.
Books currently in the Shopfloor Series include:

55 FOR OPERATORS TPM FOR SUPERVISORS
5 Pillars of the Visual Workplace The Pmduch'vity Development Team
The Productivity Development Team ISBN 1-56327-161-3 / 96 pages
ISBN 1-56327-123-0/ 133 pages Order TPMSUP-B9001/ $25.00
Order SOP-89001 / $25.00
TPM TEAM GUIDE
QUICK CHANGEOVER FOR OPERATORS Kunio 5himse
The SMEO System ISBN 1-56327-079-X/ 175 pages
The Productivity Development Team Order TGUIDE-B9001/ $25.00
ISBN 1-56327-125-7 / 93 pages
Order QCOOP-B9001/ $25.00 AUTONOMOUS MAINTENANCE
The Japan Institute of Plant Maintenance
MISTAKE-PROOFING FOR OPERATORS ISBN 1-56327-082-x / 138 pages
The Productivity Development Team Order AUTOMOP-B9001/ $25.00
ISBN 1-56327-127-3 / 93 pages
Order ZQCOP-B9001/ $25.00 FOCUSED EQUIPMENT IMPROVEMENT FOR
TPM TEAMS
JUST-IN-TIME FOR OPERATORS The Japan Institute of Plant Maintenance
The Productivity Development Team ISBN 1-56327-081-1 / 144 pages
ISBN 1-56327-134-6 / 96 pages Order FEIOP-B9001/ $25.00
Order JITOP-B9001/ $25.00
CELLULAR MANUFACIIIRING
TPM FOR EVERY OPERATOR One-Piece Flow for Workteams
The Japan Institute of Plant Maintenance The Productivity Development Team
ISBN 1-56327-080-3 / 136 pages ISBN 1-56327-213-X/96 pages
Order TPMEO-B9001/ $25.00 Order CELL-B9001/ $25.00
Productivity, Dept. BK, P.O. Box 13390, Portland, OR 97213-0390

Telephone: 1-800-394-6868 Fax: 1-800-394-6286

OEE For Operators - Overall Equipment Effectiveness - The Productivity Development Team - 1563272210 - Productivity Press 1999

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I SHOPFLOOR S E R I E S

O 1999 by Productivity, lnc

Cover by h'lnrk t;Veiirstei~t

Libra? of Congress Cataloging-in-Publicatiort Data

Chapter 1.About TPM and OEE

Chapter 2. Understanding Equipment-

Chapter 3. Measuring OEE

Chapter 5. Reflections and Conclusions

About the Productivity Development Team

Chapter 3 offers a step-by-step ovenliew of the process of doing the

OEE is best supporfcd by experienced consultants and trainers

"Somc tmditior~al;ippro"clies to OLL use ;I two-part f o r n ~ ~ ~forl ; icaleiilati~igperfor-

Finally, the Productivih staff wishes to acknowledge the good

Figure 1-1.Two Ways to Use This Book

O E E for Operators clraws on a wide variety of Productivity's book

Two Ways to Use This Book

How to Get the Most Out of Your Reading

Figure 1.2. Giving Your Brain a Framework for Learning

How a Reading Strategy Works

Using the Margin Assists

Key Term Defines important words

Key Point I-liglllights irnporiant ideas to remember

Example W p s you understand the key points

New Tool Helps you record data or apply

How-to Steps Indicates the sequence for

Overview of the Contents

Chapter 1.About TPM and OEE (pages 1-8)

htonorno~~s Operator invol\w~rentin regular

Qu;tlity maintenance Aclitities to manage product

ii planned program for cleveloping

Quantity Over Time Is Only Part of OEE

Effectiveness Focuses on the Equipment,

The Role of the Shopfloor Team in Using OEE

* Overdl equipment cffcctivcncss (OEE) is a key mcasurc-

* T h i s book 1s written for you, [lie shopfloor employee,

Losses Reduce Overall Equipment

T h e equipment-related losses that are important for O E E are

Take five minutes to think about this question and t o write

OEE = B/A x D/C x F/E x 100

Figure 2-2. The OEE Elements and the Equipment-Related Losses

Visualizing OEE and the Losses

"Companies eouiit l l i i s t i ~ r i eill different ways, b u t for I l l i s discusniori, we sd,tract t l ~ e r e

~nacltineis frequently down during some of that time, usually due

Figure 2-2 shows how losses to availabilih, perfont~unce,and

Availability: Downtime Losses

Other Losses to Availability

Cutting Tool Loss

Figure 2.5. Downtime Losses-Unscheduied Time

Time Not Scheduled for Production

Likewise, some companies count offline time for preveniive

Take five minutes t o think about these questions and to write

Performance: Speed Losses

h h o r stoppages last only a few seconds, so we don't try to log the

Take five minutes to think about these questions and to write

Figure 2-7. Defect Losses: Scrap, Rework, and Startup Loss

Quality: Defect Losses

Quality ~xoblemshappen when the optin~umconditions do not

Take five minutes t o think about these questions and to write

Closing the Feedback Loop

Collecting OEE Data

:ure 3-1.Failure and Setup Losses Are Measured as Time Losses

Failure and repair time i n c l ~ ~ d all

Take five minutes to think about these questions and to write