20/03/2024

SMED

Identify

Separate

Convert

Streamline

0% 100%
Internal Streamlined Converted Separated

Benefits of SMED

Maximized rated Reduced batch size

capacity  Less inventory
 Improves productivity  Less holding costs
(various Muda)
 Less risk of
 Delays capital obsolescence
expenditure  Improve
 Improves flexibility responsiveness to
demand

1
 20/03/2024

Total Equipment
Effectiveness
Performance
TEEP

Overall Equipment Effectiveness

 The percent of time that is

truly productive
 An OEE of 100% means
you are making /performing
 Without stopping
 As fast as possible
 Only good
products /services

2
 20/03/2024

6 Big Losses of OEE

 Stopping
 Set-up
 Breakdown
 Slowing down
 Minor Stops
 Speed Losses
 Making bad products
 Scrap
This Photo by Unknown Author is licensed under CC BY-SA-NC

 Rework

SMED reduces 5/6 big losses!

 Stopping
 Set-up
 Breakdown
 Slowing down
 Minor Stops
 Speed Losses
 Making bad products
 Scrap
This Photo by Unknown Author is licensed under CC BY-SA-NC

 Rework

3
 20/03/2024

Availability Losses
 Takes into account
 Equipment failures
 Setup
 Adjustments
 0% means the process is
always running during
Planned Production Time.

Performance Losses
 Takes into account
 Idling
 Minor Stops
 Reduced Speed
 0% means the process is
running as fast as
possible.

This Photo by Unknown Author is licensed under CC BY-NC-ND

4
 20/03/2024

Quality Losses
 Rejection rate = 100% -
First Pass Yield (FPY)
 FPY a.k.a First Time
Yield, Throughput Yield,
is the % of product or
service that passes
through without defects
on the first attempt.
 0% Rejection means the
process is only making
good parts

This Photo by Unknown Author is licensed under CC BY

Availability
Accounts for Availability Loss
(events that stop the process
for an appreciable length of
time). Measured by recording
the duration of Unplanned
Stops and Planned Stops.

10

5
 20/03/2024

Performance
Accounts for Performance Loss
(factors causing the process to
operate below the maximum
possible speed). Measured by
comparing Actual Run Time to
Ideal Run Time.

11

Quality
Accounts for Quality Loss (parts
which do not meet quality
requirements). Measured by
counting the number of rejects.

12

6
 20/03/2024

Data for example

Item Data
Number of Shifts 2 (morning, mid-day
Shift Length 8 hours (480 minutes)
Breaks (2 x 15 minutes) + (1 x 30 minute)
Changeover Time 20 + 14 minutes
Other Stoppage Time 30 + 10 + 20 minutes
Ideal Cycle Time 1.0 seconds
Total Produced 38,542 widgets
Number of Rejects 846 widgets

13

Calculations 1
Planned Production Time - exclude any Shift
Time where there is no intention of running
production (typically Breaks)
Formula:  Scheduled time ­  Breaks
Example:
(2 x 480) – (2 x [(15 x 2) + 30)] = 840 minutes

14

7
 20/03/2024

Calculations 2
Run Time - the amount of time that production was
actually running. Stop Time should include
both Unplanned Stops (e.g. Breakdowns) or Planned
Stops (e.g., Changeovers).
Formula: Planned Production Time ­  Stop Time
Example:
840 ­ (30+14+30+10+20) = 746 minutes

15

Calculations 3
Availability - accounts for when the process is not
running (Unplanned and Planned Stops).
Formula: Run Time / Planned Production Time
Example: 746 minutes / 840 minutes = 88.8%

16

8
 20/03/2024

Calculations 4A
Performance - accounts for when the process slower
than its theoretical speed (both Small Stops and Slow
Cycles).
Formula: (Ideal Run Rate × Total Count) / Run Time
The equivalent Ideal Run Rate in our example is 60 parts
per minute (Ideal Cycle time of 1.0 second per widget).
Example1: (1.0 second per widget × 38,542 widgets) /
(746 minutes × 60 seconds) = 86.1%

17

Calculations 4B
Formula 2: Actual Run Rate / Ideal Run Rate
or (Total Count / Run Time) / Ideal Run Rate
Example 2: (38,542 widgets / 746 minutes) / 60
widgets per minute = 86.1% Why 60 widgets
per minute?
Making 38,542 widgets should take only 642.37 minutes

18

9
 20/03/2024

Calculations 5
Good product
Formula: Total product ­ Rejects
Example: 38,542 widgets ­ 846 widgets = 37,696
widgets

19

Calculations 6
Quality - accounts for manufactured parts that do not
meet quality standards.
Formula: Good product / Total product
Example: 37,696 widgets / 38,542 widgets = 97.8%

20

10
 20/03/2024

OEE

Formula: Availability × Performance × Quality

Example: 88.8 × 86.1 × 97.8 = 74.8%

Formula 2: (Good Product × Ideal Cycle Time)

/ Planned Production Time
Example 2: (37,696 widgets × 1.0 seconds) / (840
minutes × 60 seconds) = 74.8%

21

OEE to TEEP
OEE 74.8%
See prior calculation
Planned Production Time 840 minute
See prior calculation
Total Time 1,440 minutes
24 hours x 60 minutes per hour
Utilization 58.3%
840 / 1440
TEEP = OEE x Utilization 43.6%

22

11
 20/03/2024

Total Effective Equipment Performance

 Measures the true capacity of your operation.

 Accounts for equipment losses (as measured
by OEE) and schedule losses (as measured by
Utilization).

23

Question Low Utilization

 Changeover more frequently to reduce

inventory?
 Why did we invest in so much capacity?

24

12
 20/03/2024

Schedule and Big Losses

Note : The more

general term for
breakdown is
downtime. Downtime
may be due to factors
other than the
machine. (e.g. and
unscheduled meeting
called by
management)

25

Fooling the system

 Scheduling without
demand to increase
utilization
 Increasing batch size
to reduce Setup and
Adjustments, and
Startup rejects

This Photo by Unknown Author is licensed under CC BY-SA-NC

26

13
 20/03/2024

How would you classify the following?

Availability / Performance / Quality Loss

 The machine cannot run because the raw materials
were not prepared on time. Availability
 New operators are running the machine slower
than usual because they are still learning to use it. Performance

 The machine is making aluminum rolls but

weakness in the middle of the sheet caused some
finished products to be defective. Quality Loss

27

Overall Equipment Effectiveness (OEE)

 Measures the efficiency and effectiveness of a

process, by breaking it down into three
constituent components (the OEE Factors).
 Provides a standardized method of
benchmarking progress.
 Often, it is more important to focus on the
three OEE Factors than the consolidated
metric.

28

14
 20/03/2024

TEEP
100
15.0
90 No Demand
80 15.0
Downtime
70
15.0
60 Inefficiency
50 15.0
Rejects
40

30 Standard
Standard Time for
20 Scheduled Time for Good
10 Total Time Time Up Time Output Products
100.0 85.0 70.0 55.0 40.0
0
Total Time Utilization Availability Efficiency Acceptance

29

30

15
 20/03/2024

Big benefits of TEEP

 Optimized capital investment

 Improved flexibility

31

16