How to improve performance
Does the equipment in your manufacturing plant decide when it's going to stop, or do you decide?
In most companies the answer is a mix of the two, and the result is that profit margins suffer.
Recently, I pareto charted the daily output for a month at a manufacturing company.
On three of the days, the daily total tonnes produced was higher than the OEE, (overall equipment effectiveness), benchmark.
The morning production meeting after each of those days was positive, upbeat and short. The GM exhorted the rest of staff to “keep up the good work”.
Some of the us looked at each other with raised eyebrows. We knew the equipment might decide to stop working, or a quality, operator, or process control stuff-up, was just around the corner.
The next day's production meeting was likely to return to normal; a lengthy blame session with demands for immediate improved performance.
The remainder of the month's daily production was below the OEE benchmark; equivalent to a capacity loss of 25 per cent versus the OEE benchmark. Of course, the month's budget wasn't set at the OEE benchmark as senior company management was smart enough to set “achievable” targets.
With market demand high enough to absorb the increased benchmark capacity, the fixed cost recovery could be distributed over 25 per cent more production and EBIT could be doubled.
What's the potential at your company? The Key to ‘knowing' and achieving your potential is knowledge.
Skills4Work continues to offer three NZQA unit standard papers that form the basis of core knowledge for improved equipment reliability and maintenance excellence”.
• Maintenance best practices
• Planning & scheduling for planners
• Maintenance & reliability
Skills4Work can assist you in determining how much equipment reliability is worth to your company using unit-standard approved maintenance excellence core module training, and consultant support for the development and implementation of your improvement programme.
Rob Probst, maintenance trainer at Skills 4 Work.