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1.0          Overview

To maintain or improve performance in manufacturing, especially when there are complex processes combined with a team of individuals, possibly across multiple shifts, there is an absolute need for frequent and ongoing management.  A lack of a habitual performance management will almost guarantee a steady decline in results.

In other words; when a manufacturing process is measured and managed it is possible to maintain and improve performance.  However, when a manufacturing process is not measured or measured poorly and not managed there is every chance that performance will decline.

To effectively manage a manufacturing facility there are a number of different approaches that can be taken.  The results achieved will be proportional to three factors, namely:

  • the accuracy of data (that identifies current losses)
  • the level of focus (the amount of time spent understanding and formulating decisions)
  • the quality of actions/fixes that are taken (that target resolution of the underlying losses)

Any approach that is under consideration also faces a common challenge to maximise limited resources, normally both people (time) and revenue (money) to achieve the optimum results.

This document outlines an approach that includes; short interval control and tactical management (multiple events within a shift/day), Daily/24hrly tactical reviews, and Weekly/Fortnightly strategic reviews.  The tactical reviews (up to 24hrs) focus on reacting to what is happening and ensuring that the team and engineers are focusing on the current biggest issues.  The strategic reviews are about targeting continuous and incremental improvements, identifying trends and patterns and tackling root cause and cause of cause issues.

The approach outlined is very reliant on good quality data that is analysed in a specific way that ensures maximum understanding of losses and therefore likely potential solutions.  The specific measures are:

  • Overall Equipment Effectiveness (OEE) and The Six big losses (Breakdowns, Planned downtime, Minor Stops, Speed, Quality in Process, Quality on Start up)
  • Machine downtime – split down by major stops and minor stops, Mean time between failure (MTBF) and individual equipment faults
  • Waste (quality losses) by machine area

Note that when capturing data and losses on a production line, it is critical to measure OEE based on the critical (slowest) machine on the line. In a similar way, machine downtime is useful; however knowing the effect it has had on the critical machine is invaluable.

This data could be collected manually at the end of each shift and put into Excel (or similar), however the ultimate, is to have electronically collected pinpoint accurate data that is available in real time, from each machine.  This data can then be analysed and displayed on the shop floor, in team meeting rooms, in fact anywhere in the manufacturing facility.

Decisions and resource planning that lead to action that are based on good quality data will yield results, whereas if based on perception, there is not necessarily a link between action and performance improvement.

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2.0      Benefits

This provides a structured approach to manage complex processes. It will ensure that there are relevant controls in place and minimise any surprises.

When this approach is followed habitually and built into the daily routine and the laid out practices executed to an excellent standard;  then combine this with utilising quality data and taking action on issues identified, resolving them in a timely way, performance maintenance and improvement is almost guaranteed.

3.0      Operations Review Summary

  Mini Reviews within Shift Tactical Review within shift 24 Hour review Weekly Strategic Review
Purpose Analyse data over a short timeframe to provide focus. Analyse data since the last review to provide focus area until the next review. Analyse data over the last 24 hours and provide focus for the next 24 hours. Review the week’s performance of each line to identify improvement opportunities.
Objectives
  • Identify the greatest loss and provide focus
  • Review action effectiveness
  • Identify greatest losses to the line and allocate actions and targets
  • Review effectiveness of completed actions
  • Review any planned downtime event identify actions if not within target
  • Identify any planned downtime event due and plan to make it as effective as possible
  • Plan any maintenance activities by looking for the next available opportunity
  • Identify the top losses and provide focus for the day allocating corrective actions
  • Review the effectiveness of actions
  • Check compliance and effectiveness of the tactical reviews
  • Review any internal and external planned downtime events and allocate actions if required
  • Identify any asset care opportunities in the next 24 hours
  • Review the weeks performance of each line and an 8 week trend of data
  • Identify the top focus areas and provide corrective actions to resolve the greatest loss areas
  • Review medium/long term action list
  • Confirm effectiveness of closed actions
  • Plan for any improvement projects by allocating targets, timeframe and resource
Minimum standards and measures
  • Ensure identified actions from the tactical review are having a positive effect
  • Review current situation to ensure there is focus on the greatest loss area
  • Agreed structure and attendance
  • Top loss identified
  • Improvement target set
  • Responsibility or accountability assigned
  • Agreed structure and attendance
  • Top losses for the last 24 hours identified
  • Review correlation of top losses identified in shift tactical reviews with the 24hour review
  • Review effectiveness of actions
  • Assign accountabilities, targets and timeframes
  • Agreed structure and attendance
  • Top focus areas for each line identified
  • Improvement targets and accountabilities assigned
  • Review action completion and effectiveness

3.1       Mini Reviews within Shift

3.1.1      Purpose

Analyse data over a short timeframe (max 1hr) to identify what the issues are currently and provide focus.

3.1.2      Function

  • Identify what is going on?
  • Identify what should be done?
  • Identify what has been done and what should be done now?

3.1.3      Objectives

  • Identify the biggest issue at the moment and provide focus.
  • Review action effectiveness from the Tactical review to ensure it is making an improvement.

3.1.4     Minimum Standards and Measures

  • Ensure identified actions from the tactical review are having a positive effect.
  • Review current situation to ensure there is focus on the greatest loss area.

3.1.5      Attendance

  • Lead Operator / Line Engineer
  • Operator of worst performing machine

3.1.6      Steps to carry out the Mini Review within shift (max 1hr interval)

  • Do the losses represent what was identified as focus areas from the last tactical (SIC) review?

If yes, continue to focus in this area by completing the actions identified in the SIC review, if no provide new focus area and ensure completion of the action identified in the SIC review if not already done so.

  • If the actions identified in the SIC review or the previous mini review been implemented, are they shown to make an improvement against the target?

If yes, continue monitoring, if not then the actions should be reviewed.

3.2       Short Interval Control (SIC)

Most production units analyse downtime information once every 24 hours. This results in them acting on historical data and there is every possibility that what is causing you performance loss currently is different from what it was 5, 10, 20 hours ago. By acting on current data analysed every 1, 2 or 4 hours will ensure that you focus on current losses and make improvements that will have an impact right away enabling you to meet your targets. This process is called Short Interval Control (SIC) whereby depending on the type of manufacturing process, data is reviewed at regular frequencies to ensure that losses are addressed when they are occurring making a positive effect immediately.

3.2.1    Purpose

Analyse data since the last review to provide focus area until the next review. Plan ahead for any planned downtime events until the next review and identify opportunities to carry out any maintenance activities. Review effectiveness of actions carried out since the last review.

3.2.2    Function

  • Identify what is going on?
  • Identify what should be happening compared to what is happening?
  • Identify what should be done?
  • Plan next steps.

3.2.3    Objectives

  • Identify the losses contributing to the greatest loss to the line since the last review and allocate actions and targets to resolve the losses.
  • Review effectiveness of actions carried out since the last tactical review.
  • Review any planned downtime event since the last review and identify actions if not within target.
  • Identify any planned downtime event due until the next review and plan to get everything ready to make it as effective as possible.
  • Plan any maintenance activities requiring line stoppage by looking for the next available opportunity.

3.2.4    Minimum Standards and Measures

  • Agreed structure and attendance.
  • Top loss identified.
  • Improvement target set.
  • Responsibility or accountability assigned.

3.2.5    Attendance

  • Line Leader / Team Leader
  • Lead Operator / Line Engineer
  • Optional Manufacturing / Shift Manager

3.2.6    Steps to carry out the Short Interval Control Review

Review of Actions:

  • Review actions from the last tactical review and confirm target achievement. If target is not achieved, explore why and identify next steps.
  • Review any planned downtime event against the target. If out of target, identify actions required.

Identify greatest loss since the last Tactical Review:

  • What have been the total greatest loss since the last review (identify 2-3 greatest losses)?
  • Are these fixed? If not use the steps defined in 6.3 to determine impact and assign actions as defined in 6.4.

Utilising your judgement:

  • Which loss has the highest current impact (rate 3,2,1 – 3 Highest)?
  • Which loss has the highest future impact (rate 3,2,1 – 3 Highest)?
  • Multiply Current and Future rating together to determine overall priority

Plan next steps:

  • Identify action to be carried out based on the following statements:
    • We know cause and we have one solution to fix and time / parts / resource ready to go? – Fix it now.
    • We do not know cause and do we need to know cause to resolve? – Mini Root Cause Analysis (RCA).
    • We know cause and we have one solution to fix but a limitation in time / parts / resource? – Complete temporary fix & Plan permanent fix.
    • We know cause and we have multiple options to fix? – Choose best solution.
  • Assign responsibility and confirm target (MTBF, availability, reduction of overall loss, etc).

Planned Downtime:

  • Identify any planned downtime event due before next tactical review and confirm target for the event.
  • Plan any maintenance activity, if there is any opportunity before the next tactical review.

3.3       24 Hour Performance Review

Once the short interval control process has been implemented successfully, the purpose of the 24 hour performance review is to highlight and escalate issues that require a short to medium term resolution. This is a forum to ensure that the short interval control reviews have been carried out effectively and provide focus for the next 24 hours.

3.3.1    Purpose

Analyse data over the last 24 hours and provide focus for the next 24 hours.  Identify any asset care opportunities in the next 24 hours.  Review effectiveness of actions carried out in the last 24 hours.  Review compliance of short interval control reviews.  Identify any threats and opportunities in the next 24 hours.

3.3.2    Function

  • Identify what went on?
  • Identify what should have happened compared to what happened?
  • Review what was done?
  • Identify what should be done?
  • Plan next steps.
  • Identify what could go wrong (or better than expected)?

3.3.3    Objectives

  • Identify the top losses that contributed to the greatest utilisation loss for each line and provide focus for the day allocating corrective actions.
  • Review the effectiveness of actions generated in the last meeting.
  • Check compliance of the tactical review within shift and review effectiveness.
  • Review any internal and external planned downtime events and ensure actions in place for all events out of allocated target.
  • Identify any asset care opportunities in the next 24 hours and plan for any maintenance requirements.

3.3.4    Minimum Standards and Measures

  • Agreed structure and attendance.
  • Top losses for the last 24 hours identified.
  • Review correlation of top losses identified in shift tactical reviews with the 24hour review.
  • Review effectiveness of actions.
  • Assign accountabilities, targets and timeframes.

3.3.5    Attendance

  • Manufacturing / Shift Manager
  • Line Leader / Team Leader
  • Lead Operator / Line Engineer
  • Technical Expert / Engineering representative
  • Asset care representative
  • Optional Operations and Engineering Managers

3.3.6    Steps to carry out the 24 Hour Performance Review

Review of Actions:

  • Review effectiveness of all completed actions in the last 24 hours against target.
  • Review any planned asset care completion in the last 24 hours.
  • Highlight any planned downtime activity that was over target and ensure actions have been assigned to prevent repetition.

Identify greatest loss in the last 24 hours:

  • What are the top 2-3 loss contributors in the last 24 hours?
  • Does the loss identification and actions in the tactical reviews represent the top losses identified over the 24 hour period? If no, review effectiveness of the tactical reviews

Review of the tactical Reviews:

  • Have all actions identified in the tactical reviews been completed?

If yes, have the actions been effective against the target? If no, do they need to be escalated for completion over a longer timeframe and so added to the short/medium term action log?

Plan next steps:

  • Identify action to be carried out based on the following statements:
    • We know cause and we have one solution to fix and time / parts / resource ready to go? – Fix it now.
    • We do not know cause and do we need to know cause to resolve? – Mini Root Cause Analysis (RCA).
    • We know cause and we have one solution to fix but a limitation in time / parts / resource? – Complete temporary fix & Plan permanent fix.
    • We know cause and we have multiple options to fix? – Choose best solution.
  • Assign responsibility and confirm target (MTBF, availability, reduction of overall loss, etc).

Focus for next 24 hours:

  • Identify any asset care opportunities in the next 24hours.
  • Identify any planned downtime due in the next 24hours.
  • Provide focus areas by identifying any opportunities or threats in the next 24hours based on current loss areas.
  • Assign an overall target performance for the next 24 hours.

 3.4       Weekly Strategic Review

Once the 24 hour review process has been implemented successfully, the purpose of the weekly strategic review is to review trends and identify focus areas that if not resolved will potentially become worse.

3.4.1    Purpose

Review the week’s performance and a rolling 4-8 week trend of each line.  Provide analysis of each line and identify focus areas. Review effectiveness of closed actions.  Discuss improvement projects.

3.4.2    Function

  • Identify what has been going on?
  • Identify what should be happening compared to what has happened?
  • Identify what should be done?
  • Plan next steps.
  • Identify what could go wrong (or better than expected)?

3.4.3    Objectives

  • Review the week’s performance and compare against 4-8 week rolling average of each line and provide information for the trends.
  • Identify the top focus areas for each line and provide corrective actions to resolve the greatest loss areas on the line.
  • Review medium/long term action list and focus on overdue actions.
  • Confirm effectiveness of actions closed within the week.
  • Plan for any improvement projects by allocating targets, timeframe and resource.

3.4.4    Minimum Standards and Measures

  • Agreed structure and attendance.
  • Top focus areas for each line identified.
  • Improvement targets and accountabilities assigned.
  • Review action completion and effectiveness.

3.4.5    Attendance

  • Operations Manager
  • Engineering Manager
  • Manufacturing / Shift Manager
  • Line Leader/Team leader
  • Asset Care Manager
  • Optional Senior Team Operator

3.4.6    Steps to carry out the Weekly strategic Review

Review of Actions:

  • Review effectiveness of closed actions in the week.
  • Identify overdue actions and escalate them if required.
  • Review any ongoing improvement projects.

Identify and Analyse losses:

  • What were the largest losses to the critical machine in the last week?
  • What is the 4-8 week trend of the losses? Have actions been assigned to these losses and if completed, have they been effective (i.e. is the trend improving)? If not, identify other actions to take.
  • If required drill down to individual loss breakdown to identify cause.

Plan next steps:

  • Identify action to be carried out based on the following statements:
    • We know cause and we have one solution to fix and time / parts / resource ready to go? – Fix it now.
    • We do not know cause and do we need to know cause to resolve? – Mini Root Cause Analysis (RCA).
    • We know cause and we have one solution to fix but a limitation in time / parts / resource? – Complete temporary fix & Plan permanent fix.
    • We know cause and we have multiple options to fix? – Choose best solution.
    • We need to get a better understanding of what’s going on? – Carry out situational appraisal on machine (by speaking to operator, introducing 5 bar gates, tick sheets, video camera, mechanical investigation, etc).
  • Assign responsibility, timeframe and confirm target (MTBF, availability, overall utilisation loss to critical machine, etc).

Improvement Projects:

  • Identify any focus areas that require detailed analysis by a project team.
  • Assign scope of project, targets, accountability, resource and timeframe

4.0      Conclusion

 If there are existing practices in place, any changes to these would need to be backed up with an appropriate level of support and consideration of change management.  Where this approach has been introduced successfully, it has been backed up and supported actively at a very high level of management.

One way this can be supported is by providing assistance with understanding how well the review structure is working.  Auditing the meetings, reviews and outputs is one good way of doing this.  When this auditing is done purely to check effectiveness and to learn, it can be a very powerful tool to assist the change journey.

5.0      Current State Assessment

  • Do you have a Short Interval Control Process in place?
  • Do you have a Daily/24 Hour meeting in place?
  • Do you have a Weekly/Fortnightly review in place?
  • Are all meetings defined by a Terms of Reference?
  • Is there a good compliance rate of completing the relevant meetings?
  • Are all meetings regularly attended by the required attendees?
  • Are the meetings structured well?
  • Is there a structured meeting auditing process in place?

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