| Availability | One of the three OEE metrics. This is the possible production time after all downtime losses (machine breakdowns, machine adjustments/setup) are subtracted. |
| Bad Count | The input count for any part not produced to manufacturing specifications. (bad/reject) Balanced Production When a manufacturing process produces exactly what the product demand is. Takt time is the measurement used most often to determine if a manufacturing process is balanced. |
| Benchmarking | A comparison tool used to determine the level of product, process, growth, or other successes your manufacturing plant is experiencing when compared to similar companies with similar processes and products. Used to identify a company’s strengths and weaknesses compared to their competitors and make necessary adjustments. |
| Best Practices | Repeatable procedures that over time prove to be the most efficient and effective way of accomplishing a task. Successful companies use to develop a standard of measuring. Bottleneck The slowest operation or choke point in a manufacturing process or machine. |
| Capacity | The maximum amount a machine, system, or process can produce. |
| Changeover Time | Time lost on a machine due to swapping out material, tooling, connections, or equipment. Changeovers Switching from producing one product to a new product on a machine. This process may involve replacing dies or removing unused materials. In Lean Manufacturing terms changeovers are accomplished through S.M.E.D. (Single Minute Exchange of Die) programs which strive to accomplish a complete changeover in under ten minutes. |
| Continuous Improvement | The ongoing process of trying to do things better, faster, and less expensive. |
| Cycle Time | The time to produce one part or one repetition of a particular task on a machine. |
| Cycle Time Analysis | Tool used to determine cycle times of a machine and a way to understand the events that affect the Performance metric of OEE. |
| Down Time | The period of time the machine is not available for production due to maintenance or breakdown. |
| Down Time Loss | Any production time lost due to unplanned shutdowns. One of the three OEE Loss Categories which reduces the OEE metric, Availability. |
| Down Time Reason Codes | Available codes to select that explain why a machine is down or not producing parts. These codes help to attribute the specific source or reason to why the machine is down and can be monitored and collected to analyze the production process. With down time reason codes, Root Cause Analysis can be applied to start determining Down Time Losses. |
| Empowerment | Giving employees more authority, accountability, and responsibility to affect their work place and improve their daily lifestyle. Many of the best manufacturing companies invest in OEE programs that empower an individual to be more productive. |
| External Setup | The steps and procedures you can perform while the machine is still running that facilitate the S.M.E.D. (Single Minute Exchange of Die) process. |
| Event | In OEE, an event is a production loss which occurs on a machine that is categorized. |
| Final Machine Run Time | The actual production time of the machine after subtracting all Losses (Downtime, Speed, Quality). This is what OEE measures – your machine’s real efficiency. |
| Goal | A measurable objective a machine intends to achieve within a specific period of time. S.M.A.R.T. Goals are Specific, Measurable, Attainable, Relevant, and Timely. |
| Good Count | The input count for any part produced to manufacturing specifications. These parts meet quality standards without any rework. Good count is used to calculate OEE Quality. |
| Kaizen | A Japanese term for “improvement”. A Japanese philosophy that implements the Lean Manufacturing tools used to effect improvements in the manufacturing process. This approach is to motivate employees plant wide to become involved in the evolution and improvement of all functions of the business by eliminating waste. |
| Key Performance Indicators (KPI’s) | KPI’s refer to a list of measurable parameters that will indicate how well a manufacturing plant is doing at attaining goals. Availability, Performance, Quality, and OEE are all KPI’s that a manufacturing plant would like to measure. The Production Monitor has these plus 25 more KPI’s built into the product for your easy implementation. |
| Lean Manufacturing | A manufacturing system that strives to relentlessly eliminate waste from its operations. Lean Manufacturing strives to produce products that are on time and use as few resources as possible. The OEE metric is a key tool in Lean Manufacturing programs. Lean Manufacturing includes many manufacturing improvement tools such as S.M.E.D, TPM, 5S, and Kanban. Lean Manufacturing empowers and motivates employees to engage in activities to better their respective companies. |
| Machine Adjustments/Setups | One of the Major Loss Events. Machine Adjustment/Setups is the time lost on the machine due to configuring equipment. Setup and machine changeovers contribute to OEE Downtime Losses and reduce the OEE metric, Availability. Tracking machine setup time is critical in reducing this Downtime Loss. |
| Machine Breakdowns | One of the Major Loss Events. Machine Breakdowns is the time lost on a machine due to equipment failure. Machine Breakdowns contribute to OEE Downtime Losses and reduce the OEE metric, Availability. |
| Machine Production Bad Parts | One of the Major Loss Events. Manufactured parts which did not meet quality specifications. These bad parts or rejects were produced during the steady state production of the machine. Machine Production Bad Parts contribute to Quality Losses and reduce the OEE metric, Quality. |
| Machine Reduced Speeds | One of the Major Loss Events. Machine cycle where the process is running but at a slower than expected rate. Machine Reduced Speeds contribute to OEE Speed Losses and reduce the OEE metric, Performance. |
| Machine Startup Bad Parts | One of the Major Loss Events. Bad parts produced while the machine is adjusted for production. Machine Start Up Bad Parts contribute to Speed Losses and reduce the OEE metric, Quality. |
| Machine Stops | One of the Major Loss Events. A Machine Stop is a pause in production typically less than five minutes. It is usually not long enough to be tracked as downtime. Machine Stops contribute to Speed Losses and reduce the OEE metric, Performance. |
| Machine State | The active state of the machine. The machine state can be run, jog, setup, or down. |
| Major Loss Events | The categories of production losses that are most prevalent in the manufacturing process. Machine Breakdowns, Machine Adjustments/Setups, Machine Stops, Machine Reduced Speeds, Machine Startup Bad Parts, and Machine Production Bad Parts make up the Major Loss Events. The OEE metrics help isolate these six different Major Loss Events to help you address them each individually and improve your process. |
| Material Shortage | A condition causing a machine to be down from being out of parts or the materials needed to make that part. The machine cannot continue to produce product until the material flow has been corrected. A downtime reason code can be associated with this condition and displayed on the Production Monitor for plant wide notification. |
| Nameplate Capacity | The design capacity of the machine or its manufacturing process. |
| Overall Equipment Effectiveness (OEE) | The key measurement in Total Productive Maintenance (TPM). OEE is the essential measurement for determining the efficiency and effectiveness of your process. By breaking down OEE into the three key metrics Availability, Performance, and Quality, you can measure and analyze a problem with the machine and provide improvements to fix the manufacturing process and benchmark your progress. (Formula) OEE = Availability x Performance x Quality Availability: Actual production time left after subtracting all planned downtime. Performance: How well the machine was running when it was running. Quality: How many good parts versus bad parts the machine has produced. |
| OEE Metrics: | The three components of OEE: Availability, Performance, and Quality. Focusing on these three metrics is sometimes more important than the final calculated OEE value. |
| OEE Losses | The three types of Productivity Losses (Downtime Losses, Speed Losses, and Quality Losses) associated with the three OEE metrics. |
| Performance | One of the three OEE metrics. Performance is the rate at which a machine converts available time into product. Performance tells us how well the machine was running, when it was running. Performance takes into account all the factors (Speed Losses) that cause the machine to operate at less than the maximum speed. |
| Planned Machine Run Time | The total run time that the machine is expected to produce parts. |
| Planned Shutdown | Unproductive time on a machine that is deliberately scheduled. Planned shutdown on a machine is excluded from the OEE calculation. |
| Plant Operating Time | The time that a manufacturing plant is open and the machine is capable of operation. |
| Quality | One of the three OEE metrics. Measured in the OEE metric by tracking rejected parts. Quality takes into account bad parts (Quality Losses) that do not meet quality standards. |
| Quality Loss | Quality loss is the percentage of pieces that do not meet quality standards. One of the three OEE Loss Categories which reduces the OEE metric, Quality. |
| Reject Parts | Product produced on the machine that do not meet quality specifications. |
| Rework Parts | A category of rejected parts that can be remanufactured into good parts. The OEE calculation does not make the distinction between reworked parts and bad parts that are scrapped and thrown away. |
| Run Time | The total amount of production time that a machine has been producing parts. |
| Scheduled Downtime | The period of time that a machine is not performing its intended function due to planned downtime events. Preventive maintenance and machine production tests are a few of the more common types of scheduled downtime. |
| Setup Time | The period of time on a machine required for an operator to perform all the necessary tasks to produce the first good part. |
| OEE | Alzatex Production Monitors easy way of implementing OEE and calculating the Availability, Performance, and Quality metrics of your manufacturing process. |
| Single Minute Exchange of Die (S.M.E.D.) | A Lean Manufacturing tool used to quickly change a machine over from producing a specific part or product to producing a different part or product. This program is used to help reduce setup time on the machine. This setup time can be exchanging dies or mechanical structures, but also include changing material thickness, color, or type. |
| Speed Loss | Any production time lost due to machine running below maximum speed. One of the three OEE Loss Categories which reduces the OEE metric, Performance. |
| Takt Time | The production rate of the machine that matches the rate of sales or consumption. Takt time is a German word meaning measure. In its purest sense, takt time is used to produce exactly what the customer will consume. Knowing what your takt time is for a specific product will help you understand the machine’s ideal cycle time (target counter) to meet your customer’s demand. |
| Target Counter | The target counter is also referred to as Takt time or calculated target of the machine. The target counter illustrates to the machine operator the number of parts or cycles that should be completed at a particular point within the shift, day, or production run. The target counter is a variable within the display that increases its value based on a set time value. |
| Total Count | The total number of parts, good and bad, that are produced on a machine. Total Count is used in calculating the OEE metric, Quality. |
| Total Productive Maintenance (TPM) | An equipment maintenance system that addresses maintenance issues that cause equipment downtime before they become major problems with the machine. TPM includes scheduling maintenance on a regular basis to allow for more proactive and preventive maintenance on the machine. A solid TPM program plans your machine downtime and keeps breakdowns to a minimum. |
| Total Time | The total accumulated machine time of Run Time + Down Time + Setup Time. Total Time is used in calculating the OEE metric, Performance. |
| World Class OEE | A measured OEE percentage of 85% or greater is known as World Class OEE. World Class OEE is the metric to compare current equipment performance to world class performance. World Class figures of OEE also include Availability of 90%, Performance of 95%, and Quality of 99.9%. Studies throughout the world indicate that the average OEE value in manufacturing plants is 60%. |