Finding the Hidden Factory
All manufacturers are always eager to be able to produce high quality products or services. Maintaining or even improving standard and in the same time reducing rework process is the target to be achieved by companies in general. There are several factors that are used to assess a company in its efforts to achieve and maintain this standard, those are: Availability, Performance, and Quality assessment.
Availability can be elaborated as factories or its tools (equipment, engines, assets) have their own limited operational time. All tools in factories are surely not operated all day long. It is obvious that in one week, the equipment cannot operate for more than 7x 24 hours – this is the case when the needed equipment to be operated endlessly during that period.
There are also equipments in factories according to its normal usage do not need to be operated 24x7, i.e. HVAC are needed in daylight/office hour only.
If a machine is requested and able to operate for 24 hours every day, it can be said that the machine’s availability is 100%. For the Air Conditioner case above, if the Air Conditioner needs to be operated for 8 hours, but because it also needs maintenance for two hours the availability rate of the Air Conditioner in that day is 6/8 or 75%. In brief, the availability factor is related to operational time.
Factors that can reduce availability rate:
· Breakdown (No 1 in Picture 1) and
· Setup (No 2 in Picture 1)
Breakdown means obstruction or damage. If there is a breakdown, it obviously reduces the operational time of the machine. The second factor is setup, that is the installation of the equipment for the first time, which includes starting the machine (also for the first time). The setup time obviously reduces the operational time. This implies that the activity of changing and replacing a machine will reduce the machine’s availability.
Maintenance and asset management are aimed to reduce breakdowns and the setup process, which will improve the availability rate. With a high availability rate, higher number of products will be produced as well as earn more income.
The second factor is Performance. The phrase “operational engine” and “operational engine in full speed” are two phrases that have different meanings. Operational machines with maximum speed will produce products as much as they can. The maximum speed cannot be achieved if there is breakdown or wear and tear in the machine. On the other side, there is a tactic to extend/prolong the machine lifetime, that is by maintaining the speed of the machine to medium speed.
The other case that can interfere the machine’s speed is when the machine is often experiencing “cough” or can be represented in picture as idle/minor stop.
The third factor is quality. A machine’s breakdown can also cause low quality products or damaged products. Having damaged products can initiate the rework process – the rework activity to fix the damages. The more damaged products, the higher the cost that must be burdened to a factory. Repeated machine replacement often can make products that are produced at the machine setup for the first time become low-quality products or below the expected specifications.
A company is called a world-class company if its Availability X Performance X Quality = OEE (Overall Equipment Effectiveness) is 85%. The figure 85% is derived from availability of 90% with performance of 95% and quality of 99%.
The gap between the current capacity that is represented by the below red line (Picture 1) and maximum condition (the above red line) is improvement potential for such company.
The potency is directly proportional with the amount of quality products that can be produced. Moving the bottom red line upward means of increasing the Availability, Performance, and Quality rate respectively, while bearing in mind upper limit of each respective factor.
The problem lies on the production demand that keeps increasing. It is worried that the existing production machines in a certain moment cannot afford to fulfil the request so that it can cause opportunity loss of the company to increase its income. To overcome the problem, there are several alternatives, one of them are by taking advantage of existing manufacture system through alternative operational system or increasing the amount of production according to the need of the company.
If the increase of production number can be performed by building new factories then the increase of Availability, Performance, and Quality rate can be achieved by finding a hidden factory. Of course, discovering a hidden factory has a very meaningful added value because it will greatly reduce cost in contrast of building a new factory.
The implementation of EAM (Enterprise Asset Management) such as IBM Maximo is a part to begin the discovery of the hidden factory.