Reliability Quantification Testing (RQT). This general tool for existing and new equipment fabrications helps quantify the actual reliability performance. It should become a mandatory tool used for accepting or commissioning equipment systems critical to your manufacturing processes. To build in reliability of proposed designs, reliability specifications and the level of testing before acceptance must become a part of the original purchase order. RQT establishes the test hours and failure frequency parameters, then generates a point estimate of actual Mean Time Between Failures for the tested system.
In addition to OEE, this book champions the theory of constraints management, quick changeovers, production–production capability balance, conditioned-based maintenance, and a maintenance strategy of short frequent linestops. Any one of these tools or techniques might leverage additional productivity out of the hidden factory at many plants worldwide and could be financially important to your company’s overall business.
Several aspects of the human side of manufacturing are addressed in this book. Years of observing maintenance people doing extensive shutdown work provided insights about human energy levels and attention to details. These observations form the basis for shutdown planning guidelines. In addition, a system of ranking and compensating workers doing nonrepetitive work is provided as well as recommendations about the hiring process. One of the most important purposes of this book is to help plants avoid the pain of unplanned downsizing that results from not being as productive as they could be. Over the long term, plants can not downsize themselves to success without fundamental changes in current methodologies.
At the very least, this book is intended to motivate readers to start now on their journey up the mountain toward performance excellence. I would be delighted to receive comments and stories about the active use and application of this book’s concepts in your work area.
Getting people to accept change and do things differently can be very imposing even if you know it is the right direction to go. Change often requires a leap of faith. Understanding this book will reduce the leap of faith to a single step. Climbing to higher levels on the mountain begins with a single step. Start Now!
Bob Hansen
PO Box 272427
Fort Collins, CO. 80527, USA
I give my sincere thanks to the many hundreds of people that helped me as teachers, mentors, associates, supporters, champions, team members, workmates, contributors, and friends in the manifestation of this book. A few of you are listed below.
Cindy Carelli, the person who urged me to write a book.
Mary, my wife and best friend, who supported and encouraged me through the entire project.
The people at Industrial Press, especially John Carleo and Janet Romano, as well as a big thanks to Robert Weinstein, my freelance editor.
All the authors of the suggested reading materials in Appendix 1 and 8.
And, in no particular order, the people who educated me or worked directly on aspects of this book.
Gary Bien, Ron Moore, Brad Peterson, Bob Crosby, Jerry Haggerty, Bob Baldwin, Joe Peterson, Al Weber, Jack Regan, Bob Mears, Gary Kirkpatrick, Dave Troness, Rudy Hessling, Ron Kaufman, Eric Adsit, Ron Hartman, Dave Olson, Ron Harmer, Steve VandeSande, Bob Price, Bob Dinges, Darl Brunner, Tom Brooks, Ed Fleischman, Bob Cushman, Ray Secor, Karen Gleason, Rick Gilkey, Dean Heine, Dennis Norton, Bob Izard, Chris Hiatt, Ken Nicolai, Rich Cox, Mike Lenahan, Ray Seela, Gordy Edwards, Ted Huckabee, Heinz Buschang, Jim Cole, Chris Schmachtenberger, Joe Tunner, Dave Kiick, Dick Vogel, Rick Ellerby, Ray Traugott, Rick Niles, Rob Gray, Tom Barakat, Nick Yobbagy, Tom Pray, Sally Seilbach, Al Ashbaugh, Tony Fedor, Walt Brink, Bruce Williams, Rick Merlino, Bob Moran, Ron Cappalongo, Ralph Hedding, Dave Army, Jim Harris, Ian Hedding, Walt Edwards, Harry Roberts, Chris Guerin, Carol Cox, Gary Gotham, Mike Moll, Jeff Hartzel, Ray Richard, Derek Ransom, Dennis Lock, Pete Kufeke, Stuart Parish, Ian Wood, Roy Kennedy, Nelson Tanaka, Garry Punch, Thom Winkler, Randy Cooper, Roger Maddocks, Marco Vittuzo, Edgard Lopes, Carl Talbott, Veronica Reou, Ron Chatterton, Tom Larkin, Troy Thompson, Carol Vesier, Ed Armstrong, Ray Larson, Chuck Lindeken, Jerry Thoutt, Dan Lock, Delbert Stolley, Rick Schleusener, Dale Conant, Jay Edwards, Paul Frank, Tom Redding, Ray Cozzens Mike Haas, Ken Dillman, Ray Glaback, Derold Davis, Gil Elleoby and many others.
Again, thank you all very much!
TABLE OF CONTENTS
1.Understanding the Power of Overall Equipment Effectiveness (OEE)
1.1Factories: Effective Producers of Good Goods
1.2Factory Dynamics
1.3Balancing the Business
Decide II: A Simulation Experience
1.4Leadership for Teams
1.5Moving the Community to Improved Performance
A Case Study Using OEE Metrics
1.6Total Effectiveness Equipment Performance (TEEP)
1.7The Bottom Line: Good Goods at Lowest Cost—Now!
2.Learning the Basics of OEE Metrics
2.1Definitions of OEE Categories
2.2Data Collection Review
2.3Practice Production Report
2.4Summarization Example
Method 1 OEE Using Nakajima Formulas
Method 2 OEE Using Event Time Records
Method 3 OEE Based On Good Units Transferred
2.6Reconciliation and Loss Analysis
3.The Financial Aspects of OEE
3.1Factory Example: Base Case
3.2Case B: Same Output, Improved OEE
3.3Case C: Full Factory, Improved OEE
3.4Case D: OEE Impact on Return On Assets (ROA)
3.5Case E: Higher OEE with the Same Sales, ROA