50% imrovement in Production Efficiency set overall equipment effectiveness example


New India Cuprotec overall equipment effectiveness example - gained exceptional result. A bus bar manufacturer catering to multinational companies. The company faced significant challenges related to low productivity, increased machine downtime, and poor machine performance.

In order to overcome these obstacles and improve their operations, New India Cuprotec sought the expertise of Greendot Management Solutions.

Greendot implemented an overall equipment efficiency (OEE) improvement initiative, resulting in a remarkable 50% increase in production capacity, from 16 tons to 24 tons per month.

This case study aims to highlight the journey of New India Cuprotec and the successful implementation of the OEE approach. It will delve into the issues faced by the client, the implementation approach employed by Greendot, and the impactful results achieved through improved equipment efficiency.

The study serves as a valuable example for other companies in similar industries, illustrating the positive outcomes that can be attained by prioritizing and optimizing overall equipment efficiency.

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Challenges Faced by Client

New India Cuprotec encountered several significant challenges that hindered their productivity and overall performance. These challenges included:

  1. Low Productivity: The company struggled to achieve the desired levels of productivity in their bus bar manufacturing process. This resulted in suboptimal output and inefficient resource utilization. The low productivity levels limited their ability to meet customer demands and maximize profitability.
  2. Increased Machine Downtime: New India Cuprotec experienced higher-than-desirable machine downtime, which proved to be a major obstacle to their manufacturing operations. Excessive machine downtime disrupted the production process, leading to delays, decreased throughput, and increased costs. It also impacted customer delivery schedules, potentially causing dissatisfaction and loss of business.
  3. Poor Machine Performance: The machines utilized by New India Cuprotec were not operating at their optimal capacity. This led to compromised machine performance, including issues such as inconsistent output quality, reduced speed, and increased error rates.
  4. Quality Issues and Rejections: The client faced challenges related to product quality and frequent rejections. Quality issues, such as deviations from specifications, defects, and variations in dimensions, resulted in a higher rate of rejected bus bars. These quality issues not only increased production costs but also caused delays and customer dissatisfaction. Resolving these issues became crucial for New India Cuprotec to enhance there reputation for delivering high-quality products.

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Addressing these challenges required a comprehensive and targeted approach to improve overall equipment efficiency and optimize their manufacturing processes.

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Overall Equipment Efficiency (OEE) Tool Selection & Step-by-Step Implementation Approach:

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  1. Evaluation and Needs Assessment: The first step in implementing an OEE improvement initiative is to evaluate the current state of equipment efficiency and identify the specific needs of the organization. This involves assessing key performance indicators, such as machine availability, performance, and quality, and understanding the challenges and bottlenecks affecting overall equipment efficiency.
  2. Tool Selection: Based on the evaluation, select an appropriate OEE tool that aligns with the organization's requirements. There are various software solutions available in the market designed to track and analyze OEE metrics. The selected tool should provide features for data capture, visualization, reporting, and analysis.
  3. Data Collection and Monitoring: Establish a robust system for collecting accurate and reliable data on machine performance and downtime. This may involve setting up sensors, data loggers, or integrating the OEE tool with existing equipment monitoring systems. Capture data on machine availability, performance loss, and quality issues to gain insights into the factors affecting overall equipment efficiency.
  4. Set OEE Targets: Define specific OEE targets based on industry benchmarks, organizational goals, and performance improvement objectives. These targets should be challenging yet attainable, motivating the team to strive for higher equipment efficiency.
  5. Training and Skill Development: Provide training programs to equip employees with the necessary skills and knowledge to effectively utilize the OEE tool and understand the importance of equipment efficiency. Training should cover areas such as data collection, analysis, problem-solving, and continuous improvement methodologies.
  6. Implement Standardized Operating Procedures: Develop and implement standardized operating procedures for machine setup, changeovers, maintenance, and quality control. These procedures should focus on optimizing machine performance, minimizing downtime, and ensuring consistent output quality.
  7. Perform Bottleneck Analysis: Identify bottlenecks in the production process that limit equipment efficiency and productivity. Conduct a detailed analysis to determine the root causes of these bottlenecks and develop strategies to eliminate or mitigate them. This may involve optimizing workflow, reallocating resources, or implementing process improvements.
  8. Continuous Monitoring and Improvement: Regularly monitor and analyze the OEE metrics to track progress and identify areas for improvement. Use the data insights to identify recurring issues, implement corrective actions, and continuously refine the processes to enhance equipment efficiency.
  9. Employee Engagement and Collaboration: Foster a culture of continuous improvement by involving employees at all levels. Encourage their active participation in identifying improvement opportunities, sharing ideas, and implementing solutions. Engage cross-functional teams to collaborate on initiatives aimed at improving equipment efficiency.
  10. Performance Review and Celebrate Success: Conduct periodic performance reviews to assess the impact of the OEE implementation. Evaluate the progress towards OEE targets, analyze the effectiveness of improvement initiatives, and recognize and celebrate the successes achieved. Use the feedback and insights gained to further refine and optimize the OEE approach.

By following this step-by-step implementation approach, organizations can effectively leverage OEE tools and methodologies to enhance overall equipment efficiency, improve productivity, minimize downtime, and achieve sustainable growth.

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Result of Lean Implemetation - oee casestudy

overall equipment effectiveness example at New India Cuprotec, the company witnessed significant improvements in productivity within a relatively short period. The results achieved were impressive:

  1. Increased Production: The implementation of the OEE initiative resulted in a remarkable productivity boost. The monthly production capacity surged from 16 tons to 24 tons in just five months. This 50% increase in production output showcased the effectiveness of the OEE approach in optimizing equipment efficiency and maximizing throughput.
  2. Enhanced Operational Efficiency: By addressing the issues of low productivity, higher machine downtime, and poor machine performance, New India Cuprotec experienced improved operational efficiency. The optimized equipment performance, reduced downtime, and streamlined processes resulted in smoother operations and increased productivity.
  3. Customer Satisfaction: The increase in production capacity allowed New India Cuprotec to meet customer demands more effectively. The enhanced productivity enabled the company to deliver products in a timely manner, satisfying customer requirements and strengthening customer relationships. This improved customer satisfaction and potentially opened up new business opportunities.
  4. Cost Savings: The OEE implementation led to cost savings for New India Cuprotec. By minimizing machine downtime and optimizing equipment performance, the company reduced operational disruptions and associated costs. Additionally, the improved productivity allowed for better utilization of resources.
  5. Competitive Advantage: The significant improvement in productivity and operational efficiency provided New India Cuprotec with a competitive advantage in the market. The ability to deliver higher volumes of high-quality products within shorter lead times increased the company's market competitiveness and positioned them favorably among there competitors.

The successful results achieved through the OEE implementation demonstrated the effectiveness of the approach in overcoming productivity challenges and driving positive outcomes for New India Cuprotec.

The increased production capacity, enhanced operational efficiency, improved customer satisfaction, cost savings, and competitive advantage validated the decision to prioritize equipment efficiency and implement the OEE approach.