Glossary

Definitions

5 Why Analysis

A simple process originally created by Sakichi Toyoda at the Toyota Motor Company for identifying the root cause behind a particular problem. Start with a problem definition, and keep asking “why” until the root cause is uncovered.

5S

A Lean Manufacturing process that creates an organized work area. 5S has five steps: Sort (eliminate unneeded items), Set (organize remaining items), Shine (clean and inspect the work area), Standardize (document standards for the area), Sustain (apply and audit the standards).

Actual Cycle Time

The actual time to produce one part. In OEE, calculated as Run Time divided by Total Count. Used in calculating OEE Performance. A variation of the calculation uses Actual Run Rate instead.

Actual Run Rate

The actual rate of production, when it is running. In OEE, calculated as Total Count divided by Run Time. Used in calculating OEE Performance. A variation of the calculation uses Actual Cycle Time instead.

All Time

24 hours in a day, 7 days in a week. All time refers to every minute of every day.

Andon

Indicator above production line to signal production conditions. Often uses green/yellow/red colors to indicate status.

Autonomous Maintenance

A process from TPM (Total Productive Maintenance) for improving machine OEE by engaging operators to complete routine maintenance, inspection, and lubrication activities.

Availability Loss

One of the three OEE Losses. Availability takes into account Equipment Failures and Setup and Adjustments. An Availability score of 100% means that the process is always running during Planned Production Time.

Best Practice

Methods that are considered “state of the art” by the most respected in an industry. Successful companies use different methods than unsuccessful companies.

Brainstorming

A process for creating an expanded world of ideas and possibilities. Brianstorming is a divergent problem solving process that is intended to create a broad range of ideas that can then be refined by a root cause process.

Breakdowns

A type of Unplanned Stop where time is lost due to Equipment Failure (one of the Six Big Losses). Breakdowns are a type of Unplanned Stop and affect OEE Availability.

Breaks

Unproductive time where the process is scheduled not to run because the crew is scheduled to be away from the line. Breaks are typically excluded from OEE calculations.

Capacity

The maximum amount of production available if equipment is fully productive (running at 100% OEE), for All Time (24/7).

Changeover

The manufacturing process is scheduled for production and is not running because of a planned Setup, Make Ready, or Adjustment event. Changeovers are a type of Planned Stop and affect OEE Availability.

Constraint

The step of the manufacturing process that acts as a bottleneck to the throughput of the entire process. OEE should always be measured at the constraint as it is the slowest step in the process.

Countermeasures

An action to counter or mitigate a manufacturing loss. A manufacturing loss may benefit from multiple countermeasures including immediate actions to prevent the loss from getting worse, short term fixes and long term root cause fixes.

Cycle Time

The time to produce one part. Inverse of Run Rate.

Cycle Time Analysis

Tool used to better understand issues that affect Performance. Important to automate logging of Cycle Times for later analysis.

Defect

Any part that is not right first time. Defects may be reworked, or scrapped. All defects are a loss to OEE Quality.

Design Cycle Time

See Ideal Cycle Time.

Down Time

All time where the manufacturing process was intended to be running but was not due to Unplanned Stops (e.g. breakdowns), or Planned Stops (e.g. changeovers). Down Time is also called Stop Time.

Down Time Loss

Production time lost to unplanned shutdowns. One of the three OEE Losses (reduces OEE Availability). Major focus area for improvement.

Equipment Failure

The manufacturing process is scheduled for production and is not running because of an unplanned event such as a machine break down. Equipment Failure is one of the Six Big Losses to OEE and affects OEE Availability.

Equipment Loss

Time when the plant is scheduled to run, but is not Fully Productive due to one of the Six Big Losses to OEE.

Error Proofing

Improve OEE Quality by designing error detection and prevention into processes and equipment. The goal of error-proofing is to eliminate Process Defects and Reduced Yield.

First Pass Yield

Making a Good Part, ‘right first time’ without rejecting it to be scrapped or reworked.

Focused Improvement

A highly effective process for reducing unplanned stop time. A small cross functional team selects a loss (often from a top loss report), and apply root cause analysis or 5 why analysis to identify potential causes and fixes. Focused Improvement is a technique from Lean Manufacturing and is sometimes known as a kaizen blitz.

Fully Productive Time

Actual productive time after ALL losses are subtracted. An OEE score of 100% means that the process is Fully Productive with no Availability Loss, Performance Loss, or Quality Loss.

Good Parts

Produced parts that meet quality standards (without rework). The quantity of Good Parts is referred to as Good Count which is used to calculate OEE Quality.

IDA (Information, Decision, Action)

One of the easiest and most effective ways to improve results by focusing on three factors that drive results (Information, Decisions, and Actions).

Ideal Cycle Time

Theoretical minimum time to produce one part. The inverse of Ideal Run Rate. Used to calculate OEE Performance. A variation of the calculation uses Ideal Run Rate instead.

Ideal Run Rate

Theoretical maximum production rate. The inverse of Ideal Cycle Time. Used to calculate OEE Performance. A variation of the calculation uses Ideal Cycle Time instead.

Idling and Minor Stops

The manufacturing process is running, but is experiencing brief pauses in production that are not long enough to be tracked as Equipment Failures. This loss is often called Small Stops. Idling and Minor Stops is one of the Six Big Losses to OEE and affects OEE Performance.

Lean Manufacturing

Quality philosophy that strives to minimize consumption of resources that add no value to the finished product. OEE can be a key tool and metric in Lean Manufacturing programs.

Make Ready

A stage within a changeover process in which machine settings are fine-tuned before production (often based on the inspection of a first-off part). Make Ready events are a type of Planned Stop and affect OEE Availability.

Material Shortage

The manufacturing process is scheduled for production and is not running because of an unplanned lack of materials. Material Shortages are a type of Unplanned Stop and affect OEE Availability.

Nameplate Capacity

The design capacity of a machine or process. Used to determine Ideal Cycle Time or Ideal Run Rate.

Net Run Time

Time remaining once Schedule Loss, Availability Loss, and Performance Loss are subtracted from All Time.

OEE (Overall Equipment Effectiveness)

Framework for measuring the efficiency and effectiveness of a process, by breaking it down into three constituent components (the OEE Factors). OEE helps you see and measure a problem so you can fix it, and provides a standardized method of benchmarking progress.

OEE Availability

One of the three OEE Factors. Takes into account Availability Loss (any events that stop planned production for an appreciable length of time). Must be measured in an OEE program, usually by recording the duration of Unplanned Stops and Planned Stops.

OEE Factors

The three constituent elements of OEE (Availability, Performance, and Quality). Often it is more important to focus on the three OEE Factors than the consolidated OEE metric.

OEE Losses

The three types of productivity loss associated with the three OEE Factors (Availability Loss, Performance Loss, and Quality Loss). The goal is to relentlessly work towards eliminating OEE Losses.

OEE Performance

One of the three OEE Factors. Takes into account Performance Loss (factors that cause the process to operate at less than the maximum possible speed, when running). Must be measured in an OEE program, usually by comparing Actual Cycle Time (or Actual Run Rate) to Ideal Cycle Time (or Ideal Run Rate).

OEE Quality

One of the three OEE Factors. Takes into account Quality Loss (parts which do not meet quality requirements). Must be measured in an OEE program, usually by tracking Reject Parts.

Performance Loss

One of the three OEE Losses. Performance takes into account Idling and Minor Stops and Reduced Speed. A Performance score of 100% means when the process is running it is running as fast as possible.

Planned Production Time

Total time that equipment is expected to produce. Calculated by subtracting Schedule Loss from All Time. Benchmark that OEE is measured against.

Planned Stop

The manufacturing process is scheduled for production and is not running because of a planned event such as a changeover, setup, or make ready event. Planned Stop time is one of the Six Big Losses to OEE and affects OEE Availability.

Plant Shutdown

Time when the factory has no plans to run production (typically because the factory is closed or has no shifts scheduled). Plant Shutdown is a Schedule Loss to TEEP. Plant Shutdown time is excluded from OEE calculations.

Preventive Maintenance

A process from TPM (Total Productive Maintenance) for improving OEE by carrying out maintenance activity based on either calendar time (replacing parts every few months) or loss data (replacing a part one week before it has historically failed).

Process Defects

The manufacturing process is producing defective parts (also known as reject parts) during steady-state production. Often this loss is called Production Rejects. Process Defects are one of the Six Big Losses to OEE and affects OEE Quality.

Production Counts

Parts produced during steady-state production.

Production Rejects

Rejects produced during steady-state production. Another term for Process Defects, and one of the Six Big Losses. Contributes to OEE Quality.

Quality Loss

One of the three OEE Losses. Quality is a measure of First Pass Yield and takes into account Process Defects and Reduced Yield. A Quality score of 100% means when the process is running, it is only making good parts.

Reason Code

An identification number or classification applied to an Event subcategory. Used to tabulate statistics regarding Events. Makes it much easier to get a handle on losses, especially down time loss.

Reduced Speed

The manufacturing process is running, but is running slower than the Ideal Cycle Time. This loss is often called Speed Loss. Reduced Speed is one of the Six Big Losses to OEE and affects OEE Performance.

Reduced Yield

The manufacturing process is producing defective parts (also known as reject parts) during a period of time immediately after an Equipment Failure event or a Setup and Adjustment event. Often this loss is called Startup Rejects. Reduced Yield is one of the Six Big Losses to OEE and affects OEE Quality.

Reject Parts

Produced parts that do not meet quality standards right first time. Calculated by subtracting Good Parts from Total Parts. In the Six Big Losses, Reject Parts are either produced during steady-state production (Process Defects), or on startup after a stop event (Reduced Yield).

Rework Parts

Rejected parts that can be reworked and sold to the customer. Reworked parts do not affect the OEE calculation as they were not right first time. OEE does not make a distinction between parts that can be reworked and parts that are scrapped.

Root Cause Analysis

A method of resolving a non-conformance, by tracing back from the end failure to its original (root) cause. The basic tool for understanding and eliminating the sources of productivity losses.

Run Rate

The production rate when actually producing (running). Inverse of Cycle Time.

Run Time

The manufacturing process is scheduled for production and is running. Run Time is calculated by subtracting down time from planned production time. Run time includes time when the process could be experiencing small stops, reduced speed, and making reject parts.

Schedule Loss

Time when the plant is not scheduled for production (e.g. plant shutdown, no orders, breaks and lunches). Schedule loss is excluded from OEE, and is a loss to TEEP.

Setup and Adjustments

The manufacturing process is scheduled for production and is not running because of a planned event such as a changeover or part change. This loss often includes Changeover, Make Ready events. Setup and Adjustments is one of the Six Big Losses to OEE and affects OEE Availability.

Shift Time

The period of time where a shift is scheduled to be running the machine.

SIC (Short Interval Control)

A factory-floor process for engaging operators and supervisors to maximize OEE by seeking quick improvement opportunities that they can implement in full during the shift. SIC (Short Interval Control) uses Six Big Loss data to enable teams to make ongoing course corrections during the shift.

Six Big Losses

Six categories of productivity losses that are almost universally experienced in manufacturing: Equipment Failure, Setup and Adjustments, Idling and Minor Stops, Reduced Speed, Process Defects, and Reduced Yield. Drill down into the three OEE Factors, and you will reach the Six Big Losses. Measure your process with OEE, and improve your process by addressing the Six Big Losses.

Six Sigma

Systematic quality program that strives to limit defects to six standard deviations from the mean. One of the major focuses of Six Sigma is to reduce process variation. In most companies, Quality Loss will be by far the smallest of the OEE Losses. A Six Sigma or equivalent program may be necessary to maintain focus on quality improvements.

Slow Cycle

A cycle that took longer than the Ideal Cycle Time, but less than a Small Stop. Slow Cycles are a cause for Reduced Speed in the Six Big Losses. Contributes to OEE Performance.

Slow Cycle Threshold

A dividing point between a standard cycle, and one which is considered “slow” (a Slow Cycle). Setting a Slow Cycle Threshold can be used in Cycle Time Analysis to automatically identify slow cycles.

Small Stop

A brief pause in production, but not long enough to be tracked as Stop Time. An alternative term for Idling and Minor Stops in the Six Big Losses. Contributes to OEE Performance.

Small Stop Threshold

A dividing point between a Slow Cycle, and one which is considered a Small Stop. Setting a Small Stop Threshold can be used in Cycle Time Analysis to automatically identify Small Stop cycles.

SMED (Single-Minute Exchange of Dies)

Program for reducing setup time. Named after the goal of reducing setup times to under ten minutes (representing time with one digit). Often a part of programs to improve OEE Availability.

Speed Loss

Production time lost to equipment running below maximum rated speed. An alternative term for Reduced Speed in the Six Big Losses. Contributes to OEE Performance.

Standardized Work

Document important machine operation and leadership activities to ensure that best practices are consistently captured and followed. It is extremely important that standardized work documents are treated as ‘living’ documents that are regularly updated as improvements are made.

Startup Rejects

Rejects produced while equipment is adjusted for production. An alternative term for Reduced Yield in the Six Big Losses. Contributes to OEE Quality.

Stop Time

All time where the manufacturing process was intended to be running but was not due to Unplanned Stops (e.g. breakdowns), or Planned Stops (e.g. changeovers). Stop Time is also called Down Time.

Takt Time

Production rate needed to meet customer demand. Where sales and business planning meets the factory floor.

TEEP (Total Effective Equipment Performance)

TEEP (Total Effective Equipment Performance) is a performance metric for measuring the true capacity of your manufacturing operation. TEEP takes into account equipment losses (as measured by OEE) and schedule losses (as measured by Utilization). It is calculated by multiplying OEE % by Utilization %.

Theory of Constraints

A methodology for improving productivity that was proposed by by Eli Goldratt in his bestselling 1984 novel The Goal. Dr. Goldratt proposed that every complex system, including manufacturing processes, consists of multiple linked activities, one of which acts as a constraint upon the entire system (i.e., the constraint is the “weakest link in the chain”).

Top Losses

Create an easily understood pareto-style report for quickly identifying losses to OEE. A good top losses report includes all Six Big Losses with Reason Codes for Stop Times to create a balanced perspective on where the team should prioritize their time.

Total Parts

Total of all produced parts (including Defects). The quantity of Total Parts is referred to as Total Count and is used to calculate OEE Performance and OEE Quality.

TPM (Total Productive Maintenance)

Maintenance system covering the life of all equipment: planning, manufacturing, maintenance and improving performance. OEE is a metric for defining equipment effectiveness in a TPM program.

Unplanned Stop

The manufacturing process is scheduled for production and is not running because of an event like an equipment failure or material shortage. Unplanned Stops affect OEE Availability.

Utilization

The percentage of calendar time that is used for production. Utilization is an important part of TEEP. Utilization takes into account the losses of Production Not Scheduled, and Plant Not Open.

Visual Factory

A concept for reducing communication waste on the factory floor through the use of real time indicators such as signs, charts, and scoreboards. Andon indicators are often an important tool in the visual factory.

Visual OEE

Plant floor real-time display of live OEE data for maximum team involvement. Visual OEE™ displays make improvement everyone’s job.

WIP

WIP stands for “Work in process”. Any semi-manufactured part that is not ready for sale to the customer is WIP.

World-Class OEE

90% Availability
95% Performance
99% Quality
85% OEE

A composite OEE number means very little without the total context.

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