a Novartis company
Increasing OEE throughout Manufacturing Operations
Frederico França Giunchetti
Engineering Head – Cambé / Regional Engineering Coordinator - LATAM
Objective
This study will present a real case in the Pharmaceutical industry where, after starting up a new site and understanding its competitiveness inside the Company and the Market, there was the need to redraw processes.
By using some tools and concepts from TPM (Total Productive Maintenance), Lean Manufacturing and Times-and-Methods, implementing a losses tree structure for the main equipment and rebalancing the products in the lines considering capacities and flexibility, the Manufacturing and Packaging lines came up from around 20% to 50% of OEE in less than 24 months.
Summary
1. Welcome to Cambé site, Brazil
2. Initial scenario
3. SPA – Process Improvement Culture in the site
4. Implementing OEE and its analysis from the beginning
5. Understanding the root-causes of equipment stoppages
6. People Development
7. Rebuilding the production / maintenance plans
8. Using the right equipment to the right product (Process Engineering)
9. Results
10. Next steps
11. Conclusion
12. Contact
Capital: Brasília
Area: 8,5 millions km2
Population (2010): 190 Mio
Population Growth (2000-2010): 1,17%
GDP growth: 7.5% (2010)
Cambé (PR) –São Paulo (SP)
~ 550 km
1. Welcome to Cambé site, Brazil
2. Initial Scenario
Brandnew site in 2007(2,5 years of operation)
Imported equipment without technical assistance in the
region
Lack of methodology for problems solving
Maintenance plans in Excel
Production plans developed manually
Lack of “prevention mindset”, only
corrective actions
Packaging and Manufacturing
OEE around 20%
Very high throughput time
(around 100 days)
Very young age average in the site – lack of
professional experience
High difficulties to hire qualified people
in the region
Motivated team
New equipment – low level of maintenance
and breakdowns
State-of-art GMP and HSE standards
FocusedImprovement
AutonomousMaintenance
Planned Maintenance
Training andEducation
SPA
Visual Controls Gemba Process Engineering OEE 5S
Value Stream Mapping SMED Kaizen Standard Work PDCA
GMP HSE Kanban Ishikawa / 4Ms / 5W+1H Finance analysis
3. SPA – Process Improvement Culture in the site
4. Implementing OEE and its analysis from the beginning (the rise of TPM in the site)
• Stoppages hand-written on templates by operators
• Daily reports analysis by shop-floor staff
• Stoppages recorded manually by one trainee in Excel files
� Start in a simple way: data collection doesn’t need to be automated
� Definition of an objective way for the operator registers the cause of the stoppage
� Development of Excel spreadsheets to receive the data and automatically calculate OEE, equipment utilization, MTBF, MTTR, etc.
� Then the information is there for analysis!
4. Implementing OEE and its analysis from the beginning (cont.)
Stratification of stoppages
per equipment part and reason
0
5
10
15
20
Sem
Pro
gram
ação
Re
feiç
ão
Set
Up
Tip
o A
(Lo
te)
Set
Up
Tip
o C
(C
om
Set
Up
Tip
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(Se
m
Agu
ard
and
o P
rod
uto
Co
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o
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ame
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ill-
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oto
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-Mas
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sem
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ado
r
Slo
w g
ate
Ras
pad
or
de
Imp
ress
ora
Falh
a d
e
0
0,2
0,4
0,6
0,8
1
1,2
1,4 3ºturno
2ºTurno
1ºTurno
%S
Fette 1
0
1.000
2.000
3.000
4.000
5.000
Jan Fev Mar Abr Mai Jun Jul Ago Set Out Nov Dez TGT PY
MT
BF
(h
/
qu
eb
ra/f
alh
a)
0,0
0,5
1,0
1,5
2,0
2,5
3,0
3,5
(h)
MTBF Acumulado MTTR Acumulado
Average setup time
11
02 2
15
0,0
4,9 4,4
2,11,2
0
5
10
15
20
A B C D Total
0
2
4
6
Qtdade de Set up´s Tempo médio de set up
Marcos AbraMarcos Abra
Marcos AbraMarcos AbraMarcos Abra
Marcos AbraMarcos Abra
Marcos AbraMarcos AbraResponsible
Marcos Abra
Marcos Abra
Marcos Abra
Jun 2009
Improvement
Plan
Action
1) Seladoras Hot melt: Será realizado a task list de manutenção para os equipamentos de Hot melt, dividindo as manutenções em dois periodos, sendo uma frequência semestral e a outra anual. Será realizada tambem a revisão
dos Spare Parts para que ocorra a substituição e envio de peças para reforma no período semestral ( Mangueiras e módulo de Injeção).
2) Guk de Bulas: Será realizado a revisão da task list de manutenção para os Guk de bulas, dividindo as manutenções em dois periodos, sendo uma frequência semestral e a outra bianual. Será realizada tambem a revisão
dos Spare Parts para que ocorra a substituição e envio de peças para reforma no período semestral (Rolos de Borracha). Com o treinamento realizado com o técnico da ATIMA, nossos manutentores se capacitaram para
realizarem a manutenção deste equipamento.
Encartuchadeiras e Emblistadeiras: Esta em estudo a implantação de manutenção preditiva para estes
equipamentos( Termografia, Análise de Vibração e Lubrificantes ) o que proporcionará melhor acertividade nas atividades e previsão de tempo de máquina parada para manutenção, facilitando a negociação com pcp e produção.
Critical Analysis
SELADORA HOT MELT 02 BR11-P352-SE002 24.01.2009GUK DE BULAS BR11-P356-ZZ001 12.05.2009
BALANÇA GARVENS BR11-P354-CW 004 24.06.2009SELADORA HOT MELT 04 BR11-P354-SE004 24.06.2009GUK DE BULAS BR11-P354-ZZ001 24.06.2009
GUK DE BULAS BR11-P353-ZZ001 01.06.2009ENCARTUCHADEIRA CARTOPAC BR11-P353-CT001 20.06.2009
EMBLISTADEIRA BLIPACK 240 II BR11-P304-BP001 24.06.2009ENCARTUCHADEIRA CAM BR11-P354-CT001 24.06.2009
5. Understanding the root-causes of equipment stoppages
Root Cause
Analysis
Problems
Stratification
Action Plan
Actions
Implementation
Measurable
Improvement
EvaluationInitial Situation
DiagnosisClosing, lessons learned and roll out,
if possible
A P
C Do
3
2
4
5
6
17
Losses tree stratification
1 2 3 4 5 6 7 8 9 10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
0% 28,8% 30,5% 25,0% 36,8% 29,1% 17,6% 0% 40,8% 37,0% 47,9% 63,8% 0,0% 0,0% 0,0% 49,5% 39,7% 43,1% 40,4% 27,6% 0,0% 0,0% 70,8% 39,8% 49,7% 0,0% 17,7% 17,5% 0,0% 54,1%
0,0% 10,0% 0,0% 27,6% 0,0% 2,0% 10,2% 9,2% 0,0% 0,0% 1,1% 11,1% 8,3% 0,0% 11,8% 8,8% 5,0% 6,2% 2,5% 2,5% 7,7%
0,0% 0,0% 0,0% 0,0% 0,0% 0,0% 0,0% 3,5% 0,0% 0,0% 1,7% 0,0% 0,0% 0,0% 12,1% 0,0% 0,0% 0,0% 0,0% 0,0% 0,0% 0,0%
0,0% 0,0% 0,0% 0,0% 9,9% 51,4% 8,3% 13,9% 0,0% 0,0% 0,0% 0,0% 0,0% 0,0% 0,0% 0,0% 0,0% 3,1% 85,8% 0,6% 61,2% 1,4%
0,0% 16,4% 2,9% 1,3% 0,0% 0,0% 0,7% 1,4% 0,0% 0,0% 0,0% 13,1% 13,4% 1,7% 0,9% 4,2% 0,0% 0,0% 0,0% 0,5% 11,1% 5,8%
20,0% 19,8% 14,0% 10,6% 10,4% 8,1% 31,1% 15,5% 16,4% 8,7% 15,1% 6,9% 13,2% 8,1% 11,2% 15,9% 14,2% 33,5% 6,4% 62,9% 7,6% 21,3%
0,0% 0,0% 0,0% 0,0% 0,0% 0,0% 0,0% 0,0% 0,0% 9,6% 0,0% 0,0% 0,0% 0,0% 5,1% 0,0% 1,3% 0,0% 0,0% 0,0% 0,0% 0,0%
48,0% 20,0% 46,4% 17,1% 49,8% 15,4% 7,8% 14,0% 23,7% 13,6% 28,8% 23,6% 19,4% 44,7% 29,5% 0,0% 34,7% 6,0% 7,8% 15,0% 0,0% 8,3%
3,0% 3,4% 11,8% 6,6% 0,7% 5,6% 1,2% 5,6% 12,0% 4,3% 3,8% 5,6% 2,6% 5,0% 1,6% 0,3% 5,0% 1,5% 0,7% 0,1% 1,4%
Resultados
0%
28,8% 30,5%25,0%
36,8%
29,1%
17,6%
0%
40,8%37,0%
47,9%
63,8%
0,0% 0,0% 0,0%
49,5%
39,7%43,1% 40,4%
27,6%
0,0% 0,0%
70,8%
39,8%
49,7%
17,7% 17,5%
0,0%
54,1%
37,6%
0%
27,6%
0%
10,2%
9,2%
0,0% 0,0% 0,0%
11,1%8,3%
11,8%
0,0% 0,0%
8,8%
5,0%
6,2%
2,5% 2,5%
0,0%
7,7%
0% 0%
3,5%
0,0% 0,0% 0,0%
12,1%
0,0% 0,0% 0,0%0%
9,9%
51,4%
0%
8,3% 13,9%
0,0% 0,0% 0,0% 0,0% 0,0%
85,8%
61,2%
0,0%
7,4%
16,4%
1,4%
0,0% 0,0% 0,0%
13,1% 13,4%
0,0% 0,0%
11,1%
0,0%
5,8%
20,0%
19,8%
14,0%
10,6%
10,4%
8,1% 31,1%15,5%
16,4%
8,7%
0,0% 0,0% 0,0%
15,1%
6,9%
13,2%
8,1%
11,2%
0,0% 0,0%
15,9%
14,2%
33,5%
6,4%
62,9%
7,6%
0,0%
21,3%
16,7%
9,6%
0,0% 0,0% 0,0%
5,1%
0,0% 0,0% 0,0%
48,0%
20,0%
46,4%
17,1%
49,8%
15,4%
7,8%
14,0%
23,7%
13,6%
0,0% 0,0% 0,0%
28,8% 23,6%
19,4%
44,7%
29,5%
0,0% 0,0%
34,7%
6,0% 7,8%
15,0%
0,0%
8,3%
23,2%
3,0% 3,4%
11,8%6,6% 5,6% 5,6%
12,0%4,3%
0,0% 0,0% 0,0%
3,8% 5,6%2,6% 5,0%
1,6%
0,0% 0,0%
5,0%
0,0%
1,4%
9,9%
10,0%
2,0%
1,1%
1,0%
1,7%
1,4%
0,6%
3,1%
0,5%
0,7%
2,9%
1,3%
0% 0%
3,4%
1,7%
0,9%
4,2%
1,3%
0,8%
0,7% 0,1%1,5%1,2%0,7% 0,3%
0%
20%
40%
60%
80%
100%
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Acumulado
%h
ora
s
OEE Perda de output Mecânica (Ajuste e Manutenção) Elétr ica (Ajuste e Manutenção) Ajustes Gerais Espera Limpeza Set up Outros
Problem solving tools
OEE daily measurement
Jan Fev Mar Apr May Jun Jul Aug Sep Oct Nov Dez YTD Target PY
OEE
Resultados:
41,0%
33,4%
20,7%
50%
42,7%
25,8%
35,9%
42,3%
45,8%
41,6% 40,7%
26,5%
38,8%40%
24,1%25,5%
44,3%45,9%
39,5% 39,5%
0,0%
10,0%
20,0%
30,0%
40,0%
50,0%
60,0%
70,0%
Jan Fev Mar Apr May Jun Jul Aug Sep Oct Nov Dez YTD Target PY
OE
E (
%)
Action Plan establishment
6. People Development (Training and Recognition)
People Development
Development matrix for each function:•All equipment operators•All maintenance professionals•All lab technicians
Analysis of each associate in his function:•All equipment operators•All maintenance professionals•All lab technicians
Training Plan for:•All equipment operators•All maintenance professionals• All lab technicians
Investment on trainings are high in the beginning. (Keep in mind to have flexibility for the functions)
Implementation of a recognition program for the good ideas (Productivity, Quality, HSE, etc.)
Implementation of a results-based BSC (Balance Score Card) for the Maintenance team and main operators (analyze the high-performers)
Implementation (together with HR) of a good salary program in order to keep qualified people. It’s better to have few qualified and motivated people than having many low qualified and demotivated associates
7. Rebuilding the production / maintenance plans
Production Plans:
• Production planning was controlled by Excel
spreadsheets, impacting highly the best productive sequence and, consequently, the product inventory and the work in process. Consequently, the Throughput time was very high:
Status before TPT focus:
• Total TPT in days: 99 days YTD 2007
How we did it?
• Tight inventory policy
• Better sales forecast accuracy
• Improvement in the Manufacturing and Packaging planning
• OEE measurement implementation
• Multi-disciplinary team focusing on troubleshooting, etc.
• Weekly meetings and action plan for each deviation
Results after TPT focus:
• Total TPT in days: 27 days YTD 2008
Maintenance Plans:
• Maintenance planning was controlled by Excel spreadsheets, impacting highly the control, follow up and traceability of Maintenance Orders.
• There wasn’t any KPI to reflect the Maintenance Performance.
How we did it?
• Implementation of some main KPIs for Preventive Maintenance, Calibration, Breakdown Maintenance and Utilities unavailability
• Monthly meetings to perform a critical analysis on the KPIs, action plans and follow up on them
• Implementation of a very simple version of SAP (Plant Maintenance Module)
Results:
• Maintenance and Calibration execution above 95% according to the schedule
• 100% of Maintenance Orders traceability
•.OEE improvement
8. Using the right equipment to the right product (Process Engineering)
Best scenario for lines occupation x OEE x
number of headcounts
• What is produced?• When is it produced?• How much is produced?• Make-to-stock or make-to-order?• What to produce automated and
what to produce manually?• New or old lines?• Yield of each equipment?• Need of harmonization for different
cartons/cases/leaflets?
• High or low speed equipment?
• Ideal size of batches?• Ideal number of
headcounts per line?• Ideal number of shifts?• Number of technical
complaints per line?• Outsourcing or insourcing?
Some questions to be answered by the Process
Engineering
Ind. Dir
9 0 3 3 6.240 2.143 21,3 mio blisters 7,5 mio blisters 35%
18 0 6 3 6.240 5.177 15,7 mio cartons 13,0 mio cartons 83%
9 0 3 3 6.240 4.541 31,3 mio blisters 22,9 mio blisters 73%
6 0 2 3 6.240 4.541 17,8 mio cartons 13,0 mio cartons 73%
9 0 3 3 6.240 4.023 35,2 mio blisters 22,9 mio blisters 65%
6 0 2 3 6.240 4.023 17,3 mio cartons 11,2 mio cartons 65%
3 0 1 3 6.240 4.224 22,2 mio blisters 15,1 mio blisters 68%
6 0 2 3 6.240 4.224 10,0 mio cartons 6,8 mio cartons 68%
9 0 3 3 6.240 3.632 27,3 mio blisters 16,1 mio blisters 59%
6 0 2 3 6.240 3.632 12,0 mio cartons 7,1 mio cartons 59%
Printing Area 3 0 1 3 6.240 5.795 97.878 Kg 91.027 Kg 93%
Line 2
Line 3
Line 4
Time (hours/year)Full Capacity Occupation
Available In Operation
Total
FTEMachines Shifts
Line 5
Line 6
FTE / Shift
9. Results
689 980 1.024 645 800 900
58,4
75,4 73,1 71,7
100,0 100,0
20,7
50,5 53,6 59,4
62,1 67,0
0
20
40
60
80
100
120
-
200
400
600
800
1.000
1.200
2007 2008 2009 2010 2011 2012
OE
E%
, M
io S
DU
/FT
E
Mio
SD
U
Tableting
Volume Volume / FTE OEE
9. Results (cont.)
1) Values are corrected by inflation (IGP-M) from Dec of the ACT-Year to April/2012 and converted into US$ by 2012 official Sandoz Exchange Rate
2) Personal Costs are not included
1004
636
438577
1223
853773
927
1199 10311100
1099
307
507
0
100
200
300
400
500
600
700
800
900
1000
1100
1200
1300
ACT 2009 ACT 2010 ACT 2011 TGT 2012
Maintenance and Utilities Costs Evolution
Production Maintenance (Th US$) Utilities (Th US$)
Infraestructure Maintenance (Th US$) Calibration: site instr. + QC equip. (Th US$)
2 shifts 2,5 shifts3 shifts 2,5 shifts
9. Results (cont.)
Diagram: 2012
Results:
Indicator:
Planned x Executed Preventive Maintenance
99% 99% 92%
0% 0% 0% 0% 0%0%
0% 0% 0%
97%
0% 0% 8%
0% 0% 0%0% 0% 0% 0% 0% 0%
3%95,8% 97,4% 98,6% 99,4% 99,1% 100,0%
0,0% 0,0% 0,0% 0,0% 0,0% 0,0% 0,0% 0,0% 0,0%
99,5% 98,8% 100,0%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
110%
PY09 PY10 PY11 Jan Fev Mar Apr May Jun Jul Aug Sep Oct Nov Dez YTD TGT12 GOAL
Waiting documentation % Completed documentation % Execution %
Diagram: 2012
Results:
Indicator:
MTBF - MANUFACTURING
38,7339,89
0,00 0,000,00
0,00 0,00 0,00 0,00 0,00 0,00
35,00
22,27
40,83
60,4
43,441,7 41,7 41,7
41,7 41,741,7 41,7
41,7
0
10
20
30
40
50
60
70
PY09 PY10 PY11 Jan Fev Mar Abr May Jun Jul Aug Sep Oct Nov Dez YTD TGT12 GOAL
MTB
F (h
ours
)
MTBF MTBF Accumulated
FocusedImprovement
AutonomousMaintenance
Planned Maintenance
Training andEducation
SPA
Visual Controls Gemba Process Engineering OEE 5S
Value Stream Mapping SMED Kaizen Standard Work PDCA
GMP HSE Kanban Ishikawa / 4Ms / 5W+1H Finance analysis
10. Next steps
10. Next steps (cont.)
Regulatory Compliance(HSE, GMP, 5S)
Prevention of
deviations and failures
Improvement
focused on
Value-added
Operational
Excellence
TPM
(culture that focus
on efficiency and
reliability)
LEAN/6-
SIGMA
(culture that focus
on extreme
efficiency)
10. Next steps (cont.)
The search for the REAL NORTH
11. Conclusion
In principle, to create a high competitive site comparing to others inside the Company or the competitors you need:
1. Measurement and analysis of productive data, establishing and following action plans (KPIs)
2. Methodology for root-causes finding in order to establish the “right thing – first time” culture.
3. Investment in people: trainings, better salaries, face-to-face management in order to understand what motivates each one
4. Routine for improvements discussions in productivity, quality and HSE
5. Budget establishment for improvements implementation
6. A very qualified team of Process Engineering in order to always indicate the fastest and cheapest way to produce
7.For sure, specific softwares like MES (Manufacturing Execution System) will speed up the improvement process and are very important in order to make easy having data.
8.On-the-job example coming from the mid and top-managements in order to show the new CULTURE and challenging the status quo
9. And finally, a vision For the Process Improvement Program linked to the site / Company visions, highly supported by the mid and top-level managements........a North to drive the activities and to indicate a clear way to the target