Every organization is focused to improve business performance with the help of optimum utilization of assets. When any manufacturing organization is to decide to procure new assets for operational use, they initially plan to return on investment in assets. When any organization does not utilize or usage of any equipment as per the design capacity of equipment it directly impacts the return on investment.
In this article, we understand ways to measure equipment performance and also what are efforts done by the organization to improve equipment performance.
Content
• Types of production systems.
• Methods of performance measurement.
• Important factors to minimize equipment performance.
Types of production system.
Before we proceed further we require to understand the types of production systems in an organization. Based on the production system we decide to follow which method for measurement and improve performance. Broadly classified production systems into three categories.
- Job type production.
- Batch Production.
- Mixed approach type production.
- Mass Production.
In job type production system products are manufactured based on customer requirements and chances of the same product will be very low.
In batch production, each product is manufactured in limited quantity as per customer requirements.
Mass production is producing one product in a large volume. Those organizations are following mass production module, it has a limited range of products.
In mixed approach type production includes they followed more than one production system out of job type, batch, and mass production.
Method of performance measurement
There are several methods to measure the performance of equipment as per attached below.
Any organization majority measure the equipment performance based on the above 8 methods. Some operational experts suggest measuring performance with more than one method. As per the above listed each method has pros and cons but we are required to understand which method is helpful to measure equipment performance as per the operational environment.
Many medium and small-scale industries measure performance based on output or measurement basis because it’s very easy to monitor. The important facts about the first two methods are they do not provide each time actual equipment performance detail of product output. Also very difficult to identify the production gap or areas of improvement in the first two methods.
Now a day as per the current market scenario every firm focused too followed lean manufacturing and world-class manufacturing principles and implement such tools in operational processes. As per lean manufacturing, overall equipment effectiveness and total equipment effectiveness performance provide accurate performance measurement of equipment on a time basis. Also, provide time loss bifurcation shift-wise and day-wise to analyze and improve operational processes.
An important factor to minimize the performance of equipment
Overall asset effectiveness is an advanced tool to measure machine or equipment performance. Now very few organizations is used the OAE tool to measure equipment performance. The main addition of the OAE tool is a measure performance based on the maximum production capacity of the equipment. Also, OAE tool analyze the improvement factor internally as well as externally or within organizational control and without organizational control level.
There are two different categories for affecting the performance of equipment as per attached below.
Internal Factors
• Equipment Breakdown.
• Process or equipment consumable unavailability.
• Set-up and adjustment.
• Process or product changeover.
• New product changeover.
• Un-skill operator.
• No plan to run equipment (no load condition)
External Factor
• Power failure.
• Machine parts delayed due to vendors.
• Raw material delay due to vendors.
• Production stopped due to labor issues.
• Environmental issues.
Improving the performance of equipment organization is required to minimize internal factors and external factors. There may be chances of more reasons affecting the machine’s performance but as per the above list, majority of factors are included. As per lean manufacturing guidelines kaizen, Single minutes of exchange dies, work-study and poka-yoke help a lot for improve the performance of equipment.