Eliminate these 6 Big Losses to improve OEE

OEE is one of the key factors in calculating efficiency of an Automation or machines. If any factory OEE is more than 85% than the utilization of Automation or machines is very good.

In this article we will learn how to increase OEE by eliminating or reducing 6 Big Losses.

Following are the 6 Big Losses;

1. Planned Stops
2. Unplanned Stops
3. Small Stops
4. Reduced Speed
5. Production Defects
6. Startup defects

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What is OEE

For calculating OEE we require 3 factors: Availability, Performance and Quality.

Product of these factors will provide OEE of a Machinery. For more details of OEE you can refer to our OEE article.

Calculation of OEE is very easy task to do with all data in Hand. To know where we got decline or decrement of OEE, we need to know about a key tool, which will let us know where the OEE got affected, on which we need to focus to improve easily.

6 Big Losses

Today we are going to learn about one of the key tools of Lean that is 6 Big losses. It will be majorly focused on what are the reasons for the decline of the OEE.

As we know there are 3 factors are used for OEE calculation. 6 Big losses are segregated into 3 parts.

1. Availability losses
2. Performance losses
3. Quality loss

Let ‘s see each Loss in Details

Availability Losses

Getting into the topic first focuses on basics on Availability.

Availability will be calculated based on the availability of Machinery.

Availability: Actual Working Minutes / Planned Working Minutes

In the above formula it states that, How much time machinery is in working condition with Planned Working Minutes.

The other 2 factors mostly rely on this Availability. If Machinery is available for most possible time, then Performance and Quality can get more percentage. If all goes as per the Standards.

There are 2 losses in Availability:

1. Planned Stops
2. Unplanned Stops

Lets go into details of first two losses of 6big losses

Planned Stops

This also can be referred to as Set up time.  While Calculation of available time, need to reduce this planned time.

Planned Stops can be defined as “Down time which will be already known when Production is Planned”.  The time which can be directly deducted while the time of Planning. i.e., Machine will be idle at the time of other works are ongoing.

The events which come under Planned stops: Changeovers, Tooling changes, Planned Maintenance, cleaning of machinery, Planned Power cuts, Program set up, Startup loss and quality inspection.

How to eliminate Planned Stops

Planned stops majorly will be affected by Changeovers.  All the production stakeholders need to work on SMED- Single Minute Exchange of Die. Since SMED is a very good tool in reduction of Changeovers time. One key thing need to counter measure is need to make Internal changeover to External changeovers. It requires some key measures how to reduce the change over time by some easy and reliable countermeasures such as;

Material A/B System: Since some of the factories majorly the changeover will be because of material arrangements. To reduce this kind of down time. Production should follow A/B concept. ie, Need to have 2 set of tools or material holders for changeover.  Once one set is in production flow another set should be ready for…

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