UNDERSTANDING THE
POWER OF OVERALL
EQUIPMENT
EFFECTIVENESS (OEE)
CHAPTER 1
1.1 FACTORIES:
EFFECTIVE PRODUCERS OF GOOD GOODS
Every factory attempts to be an effective, low-cost
producer.
Few factories attain and maintain high level
productivity and low costs. Many of these use a
disciplined approach to identify the best
improvements to make.
In short, they have found the power of OEE by
recognizing the hidden factory within, they have
World-class manufacturing areas share
two common characteristics
[Link] are data driven
[Link] are led by synergistic multifunction leadership teams
DATA DRIVEN
Data-driven
manufacturing implies that decisions
controlling the manufacturing process should be
based on facts, not guesses, wishes, theories or
opinions. Emerging technology is enabling both
people and equipment to collect and process the
facts they need to achieve better results. Driving
manufacturing with data promotes integration and
coherence across manufacturing organizations
throughout the supply chain.
SYNERGISTIC MULTI-FUNCTION
LEADERSHIP TEAMS
Synergistic,
multi-disciplinary teams set up to
achieve a special goal.
These teams consist of members formed from
different areas of expertise. They may come
together for a short term basis or sometimes
they are formed permanently. This depends
on the nature of the organization they work
in.
Every business plan should include projections about
the effectiveness of the proposed system and how
well it will contribute to the bottom line.
The
company should also be aware of the degree to
which it is at risk if the expected effectiveness is not
attained and sustained.
Companies
with the most effective factories will
have the staying power to be the long-term
survivors, assuming that the need for the product is
continuous. This staying power provides a
significant advantage over time.
EXAMPLE
In the paper
clip industry, one of the three U.S.
manufacturers has equipment over 50 years old, still
producing high quality clips.
Sound
investments over half a century ago, and ongoing maintenance, has provided a long-term
business advantage to the economy.
In
short, factories are at the core of any
manufacturing company. Staying in business
requires building and maintaining effective factories.
1.2 FACTORY DYNAMICS
Decisions made in purchasing today set in motion a
timeline for each item ordered and used.
How well a piece of equipment is repaired today will
influence some future runtime.
In short, all the pieces of a factory interlock. One
event eventually affects all.
World-class
organizations have evolved from
a
factory of individuals to a factory of coordinated
teams working together with a common purpose.
World-class
companies start a long journey of
continuous improvement. Much of the work is
educating all employees about doing their business
with others in mind. People may still work
independently, but they also understand their
relationship with the whole. All employees
understand the objectives and strategies of the
company.
1.3 BALANCING THE BUSINESS
In managing a company, you should
oversee not
only the factory operations, but also be concerned
with sales and marketing, accounting and finance
and human resources.
You
can develop skills and a sense of understanding
about managing the overall business in many ways.
It is encouraged to proactively seek various positions
in different departments and areas in the factory or
different factories. It is done with the intent to learn
new processes and perspectives each time to gain
experience and skills.
DECIDE II: A SIMULATION EXPERIENCE
Each
team must make decisions covering the full
range of functions, including:
MARKETING:
PRICE, PROMOTION, R&D-PROCESS,
R&D-PRODUCT, SERVICE, CUSTOMER SURVEYS
OPERATIONS:
PRODUCTION,
SCHEDULED/OVERTIME, MAINTENANCE,
PURCHASES
FINANCES:
CAPITAL INVESTMENT,
SECURITIES, MARKET RESEARCH
LABOR
MATERIAL
DIVIDENDS,
HUMAN RESOURCES: HEADCOUNT PLANS, TRAINING BUDGETS,
PAY & COMPENSATION, EMPLOYEE SURVEYS
The simulation also works in many of the key issues facing industry
today, including:
TOTAL QUALITY MANAGEMENT AND CUSTOMER SATISFACTION
TOTAL QUALITY COSTS: PREVENTION, APPRAISAL AND FAILURE
COSTS
COMPETITIVE BENCHMARKING
CUSTOMER AND EMPLOYEE SATISFACTION SURVEYS AND IMPACTS
COMMITMENT TO CUSTOMER SERVICE
HEADCOUNT PLANNING LINKED TO PRODUCTION AND CAPITAL
PLANS
PAY AND COMPENSATION ISSUES
PERSONNEL TRAINING AND DEVEOPMENT ELEMENTS
1.4 LEADERSHIP FOR TEAMS
Effective factories usually have coordinated
teams
that work synergistically with a common purpose.
Management
support
and
area
leadership
significantly influences the success of initiatives.
Nearly everyone comes to work with a desire to do a
good job and to be part of a successful unit.
Proactive
leadership is a vital part of developing
workplace improvements.
CHARACTERISTICS OF A PROACTIVE
LEADER
Proactive leaders tend to champion company
missions and achieve goals more often and with
greater ease. Where reactive leaders deal with
events as they come, proactive leaders
anticipate events and plan accordingly. Being
proactive simplifies leadership, increases positive
results and encourages a more joyful workplace.
Proactive
leaders expect some situations to be
beyond their control, but they are secure in their
problem-solving capabilities and in the capabilities in
their team. This type of leader inspires other to rise
to each occasion, embrace the company mission and
to do what needs to be done and what is right. They
give and expect honest appraisals and expect team
members to be honest and full of integrity. By
expecting the best from situations and employees,
they tend to receive it.
END
