30120140502015

International Journal of Mechanical Engineering and Technology (IJMET), ISSN 0976 –
6340(Print), ISSN 0976 – 6359(Online), Volume 5, Issue 2, February (2014), pp. 133-142, © IAEME
133
OPTIMIZING TIME WITH INCREASING PRODUCTIVITY USING LEAN
MANUFACTURING AND OVERALL EQUIPMENT EFFECTIVENESS
Dhara Vadodaria1
, Dr. P.K.Sharma2
1
(M.Tech Scholar/Mechanical Engineering/ NRI Institute of Information Science
&Technology/Bhopal/India)
2
(HOD/Mechanical Engineering/ NRI Institute of Information Science
&Technology/Bhopal/India)
ABSTRACT
Lean Manufacturing is the production control technique for eliminating the waste from
manufacturing. Lean is concentrated on preserving value with less work. Lean manufacturing is a
theme of efficiency based on optimizing flow; it is a present-day instance of the recurring theme in
human history toward increasing efficiency, decreasing waste, and using empirical methods to decide
what matters, rather than uncritically accepting pre-existing ideas. Manufacturers are under
tremendous pressure to improve productivity and quality while reducing costs. It’s also known
Toyota Production System (TPS). Lean manufacturing saves time of company with production. So, it
can save labor time and cost. Also, it can save time on total production of Company. OEE is a "best
practices" way to monitor and improve the effectiveness of your manufacturing processes. OEE is
simple and practical. It takes the most common and important sources of manufacturing productivity
loss, places them into three primary categories and distills them into metrics. OEE is frequently used
as a key metric in TPM (Total Productive Maintenance) and Lean Manufacturing programs and gives
a consistent way to measure the effectiveness of TPM and other initiatives by providing an overall
framework for measuring production efficiency. At the end of paper we can achieve maximum
production with decreasing time.
Keywords: OEE, Lean Manufacturing, TPM.
1. INTRODUCTION
1.1 Lean Manufacturing
“Lean manufacturing is a management philosophy that pursues the continuous elimination of
waste in all business processes though kaizen, also known as small and incremental
INTERNATIONAL JOURNAL OF MECHANICAL ENGINEERING
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ISSN 0976 – 6340 (Print)
ISSN 0976 – 6359 (Online)
Volume 5, Issue 2, February (2014), pp. 133-142
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134
improvement.”By contrast, lean manufacturing is based on the concept that production can, and
should, be operated by real customer demand. Instead of producing what we hope to sell, or as much
as we can make, lean manufacturing produces what customer wants with much shorter lead times.
Instead of pushing product through the factory and on to the market, it’s pulled through a system set
up to respond quickly to actual customer demand.
1.1.1 Single Piece Flow
Single piece flow can be described as an ideal state of efficient operations, where batch sizes
and lot production are replaced by working on one product at a time. While not practical for
operations which very low processing times and correspondingly high change-over times (both
values defined by takt time), it is nevertheless a Lean Manufacturing goal to achieve single piece
flow in every operation possible.
Achieving one-piece flow requires the elimination of waste. We remind the reader of the
seven wastes:
1. Labor
2. Overproduction
3. Space
4. Defects
5. Unnecessary human motion
6. Inventory
7. Transportation
As a company reduces these wastes and strives for single piece flow, many other benefits will
follow. Some of these benefits include (1) improved quality and fewer defects (2) reduced inventory
(3) less space required to build product, (4) enhancement to overall manufacturing flexibility, (5)
identification of future kaizen workshops, (6) ensures a safer work environment and (7) improves
employee morale.
Lean manufacturing involves identifying and eliminating non-value-adding activities in
design, production, supply chain management, and order processing by developing a Future State
Implementation Plan. The idea of lean is founded on the following principles:
• Specify value in the eyes of the customer
• Identify the value stream and eliminate waste
• Make value flow at the pull of the customer
• Involve and empower employees
• Continuously improve in pursuit of perfection
Reducing types of waste is another purpose to use Lean manufacturing in industry
1.1.2 Principles of lean production
The five-step thought process for guiding the implementation of lean techniques is easy to
remember, but not always easy to achieve:
1. Specify value from the standpoint of the end customer by product family.
2. Identify all the steps in the value stream for each product family, eliminating whenever
possible those steps that do not create value.
3. Make the value-creating steps occur in tight sequence so the product will flow smoothly
toward the customer.
4. As flow is introduced, let customers pull value from the next upstream activity.
5. As value is specified, value streams are identified, wasted steps are removed, and flow and
pull are introduced, begin the process again and continue it until a state of perfection is
reached in which perfect value is created with no waste.

135
1.2 Overall Equipment Effectiveness
Overall equipment effectiveness (OEE) is a hierarchy of metrics developed by Seiichi
Nakajima in the 1960s to evaluate how effectively a manufacturing operation is utilized. It is based
on the Harrington Emerson way of thinking regarding labor efficiency. The results are stated in a
generic form which allows comparison between manufacturing units in differing industries. It is not
however an absolute measure and is best used to identify scope for process performance
improvement, and how to get the improvement. If for example the cycle time is reduced, the OEE
will increase i.e more products is produced for less resource. Another example is if one enterprise
serves a high volume, low variety market, and another enterprise serves a low volume, high variety
market. More changeovers (set-ups) will lower the OEE in comparison, but if the product is sold at a
premium, there could be more margins with a lower OEE.
OEE measurement is also commonly used as a key performance indicator (KPI) in conjunction
with lean manufacturing efforts to provide an indicator of success. OEE can be illustrated by a brief
discussion of the six metrics that comprise the system. The hierarchy consists of two top-level
measures and four underlying measures.
2. METHODOLOGY
This research is a case study in which we followed a systemic way to reach the solution of
research problems. After a few primary visits an idea is generated and literature is studied according
to it. Then data is collected and analyzed from the field according to the literature. Finally, the result
is obtained. The methodology we followed can be represented by the following flowchart:
Figure 1: Action Plan of the Project

136
3. OVERVIEW OF PRODUCTION IN ABM INTERNATIONAL
Figure 2: Process layout use in ABM International
4. OVERALL EQUIPMENT EFFECTIVENESS (OEE)
Overall Equipment Effectiveness (OEE) is a way to monitor and improve the efficiency of a
manufacturing process. Developed in the mid1990’s, OEE has become an accepted management tool
to measure and evaluate plant floor productivity. OEE is broken down into three measuring metrics
of Availability, Performance, and Quality. These metrics help gauge plant’s efficiency and
effectiveness and categorize key productivity losses that occur within the manufacturing process.
OEE empowers manufacturing companies to improve their processes and in turn ensure quality,
consistency, and productivity measured at the bottom line. By definition, OEE is the multiplication
of Availability, Performance, and Quality.

137
5. TERMS USED
5.1 Availability
The previous diagram indicates that the availability is a measure for the down time losses.
The definition is as follows:
Availability = Available production time/Gross operating time
When down time losses are zero, the availability is 1 or 100%, the gross operating time
equals the available time for production. In other words, the installation throughput equals zero in no
point of time, during the available time for production. At the end of the installation, there is
continuously an output and this without interruption
5.2 Performance
The performance only concerns the gross operating time. A property of the gross operating
time is that the speed exceeds zero at any time. There are no down time losses in the gross
operational time.
5.3 Quality factor
During the net operational time, no down time or speed losses occur. In other words, the
output related to the net operational time is the product of the reference throughput (units per time
unit) x the number of time units of the net operational time. However it is not certain that the total
produced output is conform quality specifications. To gain insight into this, the quality factor is
defined:
Finally, per class the total size of the loss should be quantified. For example, when producing
a product of a certain quality class, 14% of the produced volume/numbers are losses because they do
not live up to the quality specifications of that class.
5.4 OEE
OEE is defined as the valuable operating time over the available production time. The three
effectiveness factors offer a second way to quantify the OEE:
OEE = Availability × Performance × Quality factor

138
6. CALCULATION BASED ON EXPERIMENTAL DATA
The table below contains a original shift data from ABM INTERNATIONAL, to be used for
a complete OEE calculation, starting with the calculation of the OEE Factors of Availability,
Performance, and Quality. Note that the same units of measurement (in this case minutes and pieces)
are consistently used throughout the calculations.
Table 1: OEE Calculation of Experimental Data
Item Data(shift1) Total(shift 1,2 &3)
Shift Length 8 hours = 480 min. 24 hours =1440 min.
Short Breaks 1 @ 15 min. = 15 min. 3 @ 15 min. = 45 min.
Meal Break 1 @ 30 min. = 30 min. 3 @ 30 min. = 90 min.
Down Time 70 minutes 210 minutes
Ideal Run Rate 30 pieces per minute 30 pieces per minute
Total Pieces 9,600 pieces 28,800 pieces
Reject Pieces 192 pieces 1440 pieces
6.1 Calculation for Total shift (Shift 1, 2 & 3)
Planned Production Time = [Shift Length - Breaks] = [1440 - 135] =1305 minutes
Operating Time = [Planned Production Time - Down Time] = [1305 - 210] = 1095minutes
Good Pieces = [Total Pieces - Reject Pieces] = [28800 - 1440] = 27,360 pieces
Availability = Operating Time / Planned Production Time
= 1095 minutes / 1305 minutes
= 0.8390 (83.90%)
Performance = (Total Pieces / Operating Time) / Ideal Run Rate
= (28,800 pieces / 1095 minutes) / 30pieces per minute
= 0.8767 (87.67%)
Quality = Good Pieces / Total Pieces
= 27,360 / 28,800 pieces
= 0.95 (95.00%)
OEE = Availability x Performance x Quality
= 0.8390 x 0.8767 x 0.9500
= 0.6987 (69.87%)
6.2 Calculation based on the theoretical data
Theoretical production time
The examined period is January to December. This means that the theoretical production time
is 365 days. This corresponds to 365 X 24 = 8760 hours.
Available production time
Consider there is 365 days a year, out of 365 works was not planned on some days, for the
following reasons,

139
Staggering days 52
Holidays 10
Leave/vacation 12
--------------------------
Total 74 days
There are three shifts of 8 hours per day. In total there were (365-74) X 3X 8 = 6984 hours of
work during shifts. There are also work stoppages/pauses: 2.25 hour every day, total working day
365-74 = 291 days.
Total pause time 291days×2.25hours = 655 hours
This leaves Total hours of working 6984-655 = 6329 hours.
The lack of personnel or raw materials caused the rest of the time losses. Because there was
no direct data available, an estimate had to be made. The production leader decided upon 5%,
leaving the available production time 6329 X 0.95 = 6012 hours.
The previous results are summarized as follows:
OEE (Overall Equipment Effectiveness)
OEE =
=
= 0.8832(88.32%)
Planning factor
Planning factor =
=
= 0.6863 (68.63%)
Total OEE
Total OEE =
=
= 0.6061(60.61%)
Note that the result can be obtained by multiplying the OEE by the planning factor.

140
Availability, performance and quality factor
The previous calculations do not give insight as to the different types of losses. Calculating
the different effectiveness factors below can do this.
Availability
Lead time during working period=145.5 hours in 291 days
Break Down time during one month = 8 hours
291 days=9.7 months
For 291 days total break down time = 8hours × 9.7 month=77.5 hours
Total down time= lead time + break down time = 145.5+77.5 =223 hours
Company ABM kept record of its down time - 223 hours during the examined period. Therefore the
Gross operating time is 6012 - 223 = 5789 hours.
Availability =
=
= 0.9629(96.29%)
Quality
From all produced tablets, 95% is transferred to the warehouse (Company ABM
INTERNATIONAL. works on stock), in other words 5% is rejected. The quality factor is thus 95%.
Due to the available data, the quality factor had to be calculated before the performance factor.
Performance
The net operating time is the valuable operating time divided by the quality factor:
5310/0.95 = 5589 hours.
The gross operating time is 5789 hours.
Performance =
= 0.9655 (96.55%)
OEE =Availability × Performance × Quality factor =96.29% ×96.55% × 95% =88.41%
7. CONCLUSION
After applying Lean manufacturing, ABM Private Limited can reduce the waste, can increase
customer’s satisfaction. By implementing Lean Manufacturing we can achieve less idle time, reduce
break downs, minimized waste, less production defects. By applying Lean manufacturing company
can significantly reduce inventory and it will help to reduce inventory cost. When implementing lean
within our organizations, equipment reliability is the predominant foundational element that enables
lean operational performance.

141
(Experimental time) (Theoretical time)
Figure 3: Experimental and theoretical subdivision of plant operating time
From, the above graphs more production time can be achieved. In above graphs we can
reduce the down time and break time up to 9% and can increase production time up to 9%
Table 2: Comparison of Theoretical and Experimental OEE
From calculation of OEE we are getting values for theoretical and experimental calculation.
We can see that we can still achieve more production rate and effectiveness in the company’s
production by comparing theoretical and experimental results. By implementing OEE in day to day
task it will eliminate down time and lead time which this company have and by achieving more
productive time company can increase it availability and performance. Also, company can
implement the routine maintenance and maintenance on the working machines. Which will help
them to reduce the break down losses; Speed losses, down time losses and more OEE can be
achieved. So, overall equipment effectiveness can be increased. Implementation and working with
these on daily bases can result in positive improvement of industry and lead to good position.
Applying the Lean manufacturing and over all equipment effectiveness company can its production
with decreasing time loss.
8. ACKNOWLEDGEMENTS
This research was logistically supported by ABM INTERNATIONAL, Gujarat, India. The
authors wish to express thankful gratitude to all the officers and stuffs of ABM INTERNATONAL
for their wholehearted cooperation throughout the study in the organization.
OEE Factor Theoretical Experimental
Availability 96.29% 83.90%
Performance 96.55% 87.67%
Quality 95.00% 95.00%
OEE 88.41% 69.87%

142
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