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Rich Grilli
/ Categories: Engineers Viewpoint

10 Ways to Not Screw Up the OEE Project – It is More Important than You Think

Is there a mandate in your company to increase OEE and it has landed on your plate? Ah yes, the OEE approach. You remember what that is right? The Overall Equipment Effectiveness metric as developed in Japan during restoration made famous in crafting some serious efficiency. Well, someone in management has decided that THIS is the way to make his world better and now it’s up to you to make it happen.

But there are pitfalls along the way:

  • Somebody is going to tell you that the best way to start is collecting data manually so that you can understand the process better.
  • Somebody else is going to say that “your” OEE is fine, but the real problem is _____________  (fill in the blank from the following:  SPC, lot tracking, scrap, downtime, indirect time, maintenance, line scheduling, set-up reductions, etc., etc.)
  • Somebody “big” (The VP Ops) is going old school and needs proof that an OEE system will work for his people.

This puts you in a tight spot. An OEE project requires that a lot of people get involved and they’ll all have their own ideas. Try to satisfy them all and you’ll have a 6 figure project with 18 months to implement. Even if it gets approved, good luck getting it implemented successfully. This could get ugly if you’re not careful.

Mach two and the problems that occur at speed.

Should you be concerned about any of this? Guess what, you’re right. Picture this – the crazed Line 1 supervisor approaches you with a can of red paint in one hand and a paintbrush in the other. As he lays out his requirements, he quickly paints you into a corner, smiling the whole time. Once he has you where he wants you, he lights his hair on fire and then leaves! After all, he has a lot of work to do.

I’ve seen this scenario played out many times. OK, maybe the “hair on fire” thing is a bit extreme, but you know what I’m talking about. Over and over, the same issues arose. OEE is great, but what about labor? We can’t spend time collecting data – it will take away from making products. The system has to be idiot-proof because our people aren’t computer savvy.

Is the Key to happiness a good OEE?

Not everyone has the same priorities. Importance is relative in the big picture. And what’s important today may not be tomorrow. So how do you put together a project that will address the desires of all the stakeholders? What’s the best way to navigate the political landscape that’s been laid out in front of you without getting off course? I have to be honest with you. Most of these projects fail before they’re implemented and never get off the ground. Now it’s up to YOU to make sure that doesn’t happen.

And get the efficiency you know is buried in the system and the data that comes out of it.

What if you had a plan going-in that could deal with all of this? Your life will be easier, you’ll get the recognition you deserve, and you may become known as that “someone who can get things done”.

Remember your 7P’s: Proper Planning and Preparation Prevents Piss Poor Performance. 

10 Ways to Succeed at an OEE Project Where 90% Fail at Trying

  1. Collect the requirements.  Learn from everyone with the intent of developing a phased approach to implementing on your shop floor with OEE being Phase 1.
  2. Create your list.  Capture all of the required functions, taking into account what the “output” of the system will be. What does the plant manager need to see in real-time? What KPI’s does each line need displayed in real-time? What reports are required?
  3. Insist Upon Real-time.  In the moment data for the right OEE is the right approach.  If it’s possible, collect the data automatically. Remember that real-time feedback to line operators results in an automatic increase in OEE.
  4. Evaluate your lines.   Focus where production counts can be monitored automatically. If the data is in your PLC’s, can you get it out? OPC communication is the right way to go here. If not, the approach is to install a new dedicated PLC with sensors installed on each line.
  5. Find Your Data Points.  If automatic production monitoring is not applicable, what will be your collection points and how will you collect the data?
  6. Calculate the Load.  Determine how to load the “job” you’re reporting on into the OEE system. This will typically be the order/operation or the product from the ERP.
  7. Recognize Great Data. Do not accept “manual collection of data” as a viable approach because it produces false results and is labor-intensive.
  8. Be Tough.  Evaluate systems based on OEE specificity to start and expandability to future phase functions as determined by your requirements. Plan to justify the OEE purchase on its own merits.
  9. Go Easy.  Make sure the system is easy to implement. Software installation and configuration should take no more than 2 weeks.
  10. Be Simple.  Put together a detailed but simple project plan indicating who will do what, how long it will take, and how you will monitor progress.

Execution is Everything

So now you have a plan with knowledge of the challenges that will occur and how to deal with them. This is a plan that is well-tested and that works, so your chances for success are good. Don’t worry, you may not be an expert in OEE at this point but you will be shortly. And best of all, you’ll not only look like you know what you’re doing, you actually will.

An Expert is someone who attempted the unachievable and survived to tell about it.

Ok, let’s go get that data and turn it into real information that can be used to improve OEE, not just monitor it.

And remember, you are not alone in this.  There are many people cheering you onward --  including us.  If you need a little encouragement, don’t hesitate to call.

About the author:

Rich Grilli is the president of Crossroads RMC, which helps manufacturers optimize their operations. He is a long-time numbers-guy and engineer who has a passion for systemic models that work. Rich is very interested in designing, planning, and analyzing different aspects of a company's production methods. Because he’s been around many manufacturing plants worldwide, he has developed a deep understanding about coordinating/improving quality control, implementing new strategies for product assembly, troubleshooting inefficiencies, and making process improvements that make a difference.

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Tips:  LX | BPCS | M3

Understanding: How many hours remain in total and at each operation?

First let’s look at some key BPCS Master File data starting with the routing file.

How many routing steps (operations) are set up that reflect how the product is produced in the factory? If you take a short cut and set up only one operation for the entire process, then you will limit the information seen on the SO inquiry program. Set up the operation steps to reflect what you want to report back to from the factory floor.

Will each of the routing steps run in one work center, or in different work centers? To keep it simple you may want to set up work centers as departments. For example:

  • Assembly
  • Machine
  • Paint
  • Etc.

For each operation setup consider how you have set up the following:

  • Load Codes – for example a code 5 is used if reporting both setup time and run labor time. These codes are maintained in the work center file
  • Basis Code – typical codes are P for pieces per hour,  3 is used for hours per 1,000 pieces
  • Setup hours – if you set them up, you also want to report them
  • Run hours – Direct Labor
  • Machine hours

How you set up th

Came across an article online from Lauber CFO’s, and thought I would share. Here is a checklist for things to consider in order to finish out the year and help you plan for 2016:

 

  • Are your accounting records up to date so that you can make a projection of how the current year will turn out?
  • Are all account reconciliations currently up to date to facilitate the closing of the books after year end?
  • Are there accounts receivable that should be reserved for or written off prior to the end of the year?
  • If your business carries inventory, do you need to plan a physical count as of the end of the year?
  • Has depreciation on your fixed assets been recorded during the year? Have you considered depreciation on current year additions?
  • Have all new asset purchases and bank loans been recorded on your books?
  • Are there any liabilities, for example, pending legal actions or warranty issues, which will need to be recorded prior to year end? 
  • Do you have a plan in place to properly “cut-off” revenue at year end to properly match revenue and expense?
  • Will there be bonuses, profit sharing contributions or discretionary retirement plan contributions paid prior to the end of the year? How will these payments affect cash f
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Tips: LN | Baan

All actions required for converting, validating, matching, and posting electronically received bank statements can be performed within a single session:

  • Bank Statement Workbench (tfcmg5610m100)
  • Bank Statement (tfcmg5610m000)

Alternatively, you can use the sequence of electronic bank statement sessions outlined below.

Steps to Process Electronic Bank Statements:

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