Welcome to LeanExecution!

Welcome!

If you are a first time visitor interested in getting started with OEE, click here to access our first post “OEE – Overall Equipment Effectiveness“.  This is the post that started it all.

We have presented many articles over the past many months featuring OEE (Overall Equipment Effectiveness) and related topics.  We recognize that the those who have been following us are more interested in reading our latest posts without having to click through the links or surf the sidebar to see them.  The latest post will appear immediately below this welcome message.

Questions, Comments, Future Topics

Your comments and suggestions are appreciated.  Feel free to leave a comment or send your feedback to us by e-mail at leanexecution@gmail.com or vergence.consulting@gmail.com.  We respect your privacy and will not distribute or sell your contact information to any third parties.  What you send to us stays with us.

Visit us often.  We are continually presenting fresh content and updates to our templates.

Until Next Time – STAY lean!

Vergence Business Associates

Instant Turnaround for Overall Equipment Effectiveness (OEE)

Instant Turnaround

Did you know that your leadership style may be affecting your Overall Equipment Effectiveness?  A highly engaged and motivated workforce is the one single distinguishing trait of the top companies in industry today.  Most leaders and managers alike recognize that having the right people on the team are key to the success of their companies.  The vision and mission statements of many companies include statements like “… our people are our greatest asset …” or “… we will attract and retain the best talent …”  If we believe these statements are true , then we would envision a working environment where everyone is an engaged team member of a seamless organization that is fully supported by the management team.  Does this describe the culture of your organization?

What does this have to do with OEE?

LEAN is a CULTURE and one of the key metrics of lean is OEE.  So, could it be that OEE is a direct reflection of the culture that exists in your company?  What are the trends showing?  Does the data reflect a high-velocity company striving to improve its operations to become the new definition of agile or lean?  Who is leading the charge to improve performance?  Where is your team?  If your team isn’t behind you – where are they?

What motivates your employees to bring themselves to work everyday?   Their motivation to work is probably not the same as your reason for being in business.  This presents one of the first challenges that the management team will have to address – aligning company and employee goals where they become synonymous and mutually beneficial.  This doesn’t mean we’re going to rewrite the business plan, but rather, we relate how achieving company goals will enable the employee to achieve theirs.  The key is making your company the place where they want to work – a company they can be proud of and even more so because they are a part of its continuing success.

We contend that self-motivated employees work harder – they take the initiative to get things done – quickly.  Many operations are dependent on people who control their level of productivity.  It can be a difficult challenge to motivate people to work harder than their own perceived value.  The resistance to improve is rooted in the expectation that people will be required to do more work for the same value.  If you are operating in a union environment, the employees tend to be more sensitive to changes in their work structure.

In contrast to their external behavior, people want to be challenged and they are willing and wanting to do more.  However, they will not automatically give you their discretionary effort unless they have earned your trust and respect first.  Without it, they will only give you the value of what they think their time is worth.  Becoming interested in what people are doing, acknowledging their performance and treating them with respect is at the core of an instant turnaround.

When people become engaged and their achievements are recognized they will take ownership of their operation.  OEE results will improve as employees suggest ways to improve their processes and strive to achieve new goals.  None of this will happen unless the executives and senior management team take an active role to become part of the action.

How to get your Instant Turnaround

We just completed a review of Instant Turnaround:  Getting people excited about coming to work and working hardby Harry Paul and Ross Reck, PH.D.  You will learn how to tap into and harness the discretionary effort of everyone on your team.  This book tells a story that reveals how your leadership style and that of your front line management team affects and directly impacts the performance of your team.  This leadership style works.  A lean culture is dependent on the engagement and effective interactions of all of your employees – including the executive management.  This book teaches a simple yet powerful strategy to tap into and harness the discretionary effort that every employee is wanting and willing to give – if the conditions are right.

Get it now: Instant Turnaround!: Getting People Excited About Coming to Work and Working Hard

What is your leadership style?

A true leader is and holds people accountable, works with integrity, is approachable, listens, inspires, smiles, and even knows how to have fun.  The list of leadership traits and characteristics is long and many great leaders would count themselves as falling short on many of them.  If your team shares mutual respect and trust, you are working in great company.  If your team fears you, why should they stay?  Remember, most people want to belong to a winning team!  If you manage by walking around (MBWA), you will certainly have an opportunity to communicate your praise and expectations to your team.  They will respond in kind!

Until Next Time – STAY lean!

OEE Topics for July – 2009

We changed our theme!

Today was another day to do a little maintenance. We spent a little time revamping our look and feel. We hope you enjoy the changes and find our site a little easier to navigate.  We updated our Free Downloads page to present another more direct venue using Box.Net. If you’re already on WordPress, you already know how great this widget is. Downloads could never be faster or easier.

We also took some time today to update some of our pages. We would suggest, however, that the best detailed content appears in the individual articles that we have posted.

Happy July 4th to our friends and neighbours in the United States!

Upcoming Topics for July – 2009

  1. Tracking OEE Improvements:  We have noticed an increase in the number of requests to discuss tracking OEE improvements.  We have been working on a few different approaches even for our own consulting practice and look forward to sharing some thoughts and ideas here.
  2. How OEE can improve your Cost of Non-Quality.  It’s more than yield.
  3. What OEE can do for your Inventory.  Improvements should be cascading to other areas of your operation – including the warehouse.
  4. Innovation – Defining your future with OEE
  5. OEE and Agile – Going beyond lean with OEE.
  6. Best Practices – OEE in real life, in real time

If you would like to suggest a topic for a future post, ask a question, or make a suggestion, please leave a comment or simply send an e-mail to LeanExecution@gmail.com or vergence.consulting@gmail.com.  We do appreciate your feedback.

Until Next Time – STAY lean!

Vergence Business Associates

We respect your privacy, your information will not be shared, sold, or distributed to any third parties.  We will only use your e-mail to communicate with you at your request.  You will not be subject to any advertising or marketing campaigns.

Cost Weighted OEE and other free OEE Spreadsheet Templates

OEE Spreadsheet Templates – One Click Closer:

As the days of summer are upon us, we thought it would be good idea to make it easier for you to access our free downloads so you can spend more time doing the things you want to do.  We have updated our site and we are pleased to offer you four ways to download our OEE spreadsheet templates:

  1. We added a new page to the sidebar titled “FREE OEE Templates
  2. We also added a new Link List to the sidebar titled “Download Files”
  3. We made the FREE DOWNLOADS orange Box file little larger and easier to read.
  4. We will make an effort to include direct access links in the content of our posts.

Your OEE templates are literally a click away – saving you time and effort.

Cost Weighted OEE – Advanced OEE Template

We have received numerous requests for our “Cost Weighted OEE” template.  Many people are starting to realize that the OEE factors for availability, performance, and quality are not directly correlated.  Of course, we have also discussed our concerns in this regard on several occasions and will state again that OEE is not a stand alone metric.  As a vantage point metric, it can provide a valuable perspective on operations in real time, however, it is only one part of the overall equation.

Rex Gallaher wrote an excellent article titled “OEE Oxymoron; Are all factors truly equal?” that was published by ReliablePlant.com on February 18, 2009.  This article also conveys the premise that the OEE factors are not equal.  Understanding the financial impact of each of the OEE factors will assure that efforts and energy are focused on activities that will provide the greatest return on investment for your company.

To celebrate our site updates, we thought we would give you at least one more reason to see how our download venues work.  A copy of the Cost Weighted OEE Template is now available through all three of our download venues or you can Click HERE to get immediate access to the file. 

For a detailed discussion of OEE and how it can (and should not) be used to identify opportunities to eliminate waste and reduce costs, click on one of the links below:

  1. OEE and Cost Control – Published in December, 2008
  2. 6 Things OEE is NOT! – Published in April, 2009
  3. Make or Break with OEE – Published in May, 2009

In light of the current economy, many companies have been forced to look inward to find “new” money.  OEE is one of the few lean metrics available that can help your organization to focus on the greatest opportunities with measurable returns.  We trust the templates and spreadsheet solutions that we offer here will help you in your quest.

For more information, click on the Categories section of the sidebar to search for other articles on our Blog that may be of interest to you.  They can provide significant insight into the many aspects of operations and OEE and may serve as part of your ongoing training efforts.

We appreciate your feedback.  Please feel free to leave a comment or send an e-mail with your suggestions for a future topic, comments, questions, or concerns to leanexecution@gmail.com or vergence.consulting@gmail.com

Until next time – STAY lean!

Vergence Associates ICON 03-07-09-15-20

How OEE can improve your Inventory

Once you have established a robust OEE system, you should also be reaping benefits in other areas of your organization.

We will be offering some insights into the other performance metrics such as inventory over the next few weeks. Improved availability, performance, and quality will all have an impact on your inventory and materials management processes. Inventory turns is one metric that should be improving as your OEE improves. If not, perhaps there is an opportunity to integrate OEE even deeper into your organization.

In a truly lean organization, other vantage point metrics will provide evidence of a well integrated OEE system. Metrics such as delivery, quality (ppm), labour efficiency, lead time, mean time between failures, mean response times, down time, turn over, and financial performance indicators are all directly or indirectly affected by improvements to your operation and OEE.

We will discuss the impact of OEE on these “other” metrics over the next few posts. Remember, we also offer excel templates at no cost to you. Click on the “BOX” files on the sidebar to get your free templates today! Our templates offer more than a simple OEE calculator – they can be used immediately with little or no modifications to suit your processes.

Until next time, STAY lean!

Vergence – Lean Execution Team.