Supplier OEE Activity

Outline

Renault-Nissan Purchasing Organization

NPW Promotion Department, NISSAN MOTOR COMPANY
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 JPN Suppliers Meeting
1.BackgroundWhat is Ideal TdC Activity?
on May 27, 2013
Ideal TdC Activity
Estimate theoretical minimized cost per unit by country/pl
Activity to seek for Ideal TdC GAP Close Activity between ac
Set Sub-KPI for main activity to be achieved together with
Yearly milestone until FY16
Cross Functional/ Cross Company
Key 16 models

OEE (Overall
Technical Equipment
C/R XX% C/R XX%
innovation Efficency)
Container fill
Localizatio ratio Design Standard
n Time Ratio
On/In GAP Close
site
Other Activity with
ideal TdC

Base FY16 M/S

Ideal TdC
(Current
model) 2 2
 JPN Suppliers Meeting
1.BackgroundWhat is Ideal TdC Activity?
on May 27, 2013
Ideal TdC control models
Ideal TdC setting 7models already set
FY16 milestone setting Remaining models to be set b
Ideal TdC / FY16 M/S to be shown in each regional suppl

NML
XXXX NNA
NMUK
XXXX XXXX
XXXX
XXXX XXXX
XXXX
NSIO
XXXX
DFL NMEX
XXXX
XXXX XXXX
XXXX XXXX *
RNAIPL XXXX
*to be set by
XXXX
NMT
XXXX
XXX : Already set

3 3
 JPN Suppliers Meeting
1.BackgroundWhat is Ideal TdC Activity?
on May 27, 2013
Ideal TdC Sub KPI
RTL/ Global expert lead Ideal TdC activity
Global expert lead each Sub KPI achievement
BOP FY13 focused KPI : Tier1/N localization, Supplie
Key
activity
In-house cost BOP cost Logistic cost Warranty
Design Standard Tier1/N Container fill
12 MIS
Time Ratio LCC utilization ratio (m3/FEU)
Design Standard Tier1/N m3/vehicle
Time Localization for deep-sea
Expense
Weighted
Electricity On/In/Near site
average km
Kwh/unit OEE
Gas
: Time (Overall
(MJ/unit)
utilization
OEE Equipment
Head count/JPH
: Quality product Efficency)
(semi directQA)
ratio
<Flat steel>
Head count/JPH
(semi-direct Localization
aintenance ratio
Head count <Flat steel>
/10K capacity (in- Technical Yield
direct ratio
N value of VC
lot

4 4
 JPN Suppliers Meeting
1.Background on May 27, 2013

Ideal TdC Key Activity - Supplier

Supplier
OEE - OEE Gap close activity
Sub KPI : Time utilization ratio, Quality prod
Gap close : FY16 milestone based on Ideal TdC vs
Contribution TdC reduction / Supply risk mitigation

Ideal
OEE(%)

UK

JPN
US
Gap

CHN
MEX
IND Current

Parts A Parts B Parts C

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 JPN Suppliers Meeting
1.Background on May 27, 2013

Ideal TdC Key Activity - Supplier

FY13
OEE - Action Plan
Commodity setting
Parts with big opportunity
Supply risk in FY12
Global : 121 activities
FY16, FY13 milestone already
By THaNKS activity

<IND case>
FY13 scope Scope in FY14- FY13 activities
C/R Opportunity

NML
NISA NNA

Supply risk DFL

parts IND
NMT NMEX

6 6
 JPN Suppliers Meeting
1.Background on May 27, 2013
Ideal TdC Key Activity - Supplier
Expectation
OEE - to supplier
THaNKS team&Supplier Joint activity enhancement FY
Horizontal deployment for Best practice/know-how of
Quick action (Action started from Q1)
100%
Ideal <THaNKS joint activity>

Opportunity
<NISSAN> Each region <Supplier>

Support Support

Know Know
-how -how
Best Best
Practi Practi
ce ce
JPN PRC MEX IND
7 7
2.Supplier OEE Activity
Objective
Contribution for achievement of Ideal TdC by FY16,
implementation improvement activity an index in OEE

Scope
Main process that was set of every Commodity
OEE ( Time Utilization Ratio, Performance Ratio,
Quality Product Ratio)
Main process
ex) cast machining assembly
material

Availability and Quality product rate is set in the Ideal value

Availability = Time utilization ratio
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2. Relations of OEE activity and THaNKS activity
OEE activity : Activity to achieve an Ideal value by FY16
THaNKS : Improvement activity to perform in cooperation with supplier
possible even if I utilize THaNKS activity as one policy of the OEE improvement

FY13 FY14 FY15 FY16

Process
Main KAIZEN
process
OEE
Process
Other KAIZEN
process
OEE
Logistics
Quality

To set THaNKS activity with priority and necessity

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2.Step of OEE activity

Agreement on start of the activity between a

Activity agreement supplier and RNPO

To make investigation chart by supplier, and

planning to an important point and the achievement
Preliminary investigation policy of the activity hypothesis
As needed to visit for supplier by NISSAN
M/SActivity members
style agreement

PD C 8 0 0 t

/

2 0 1 3 4

/ 8 ,0 0 0

SSSS
/ 41

<Investigation chart>

HHH

/
8 .5

3 4 8 .5 0

Improvement

60

60

/

/
2 3 .0

8 0 .3 %

2 .1 0 0
# DIV/ 0 !

# DIV/ 0 !

# DIV/ 0 !
/ 2 .1 0 0

+
/ 1 .9 8 0


/ 1 .7 0 0

(
/ 0 .8 # DIV/ 0 !

'( / 1

/
2 3 .0 # DIV/ 0 !

Progress follow


(
/
/
510
30
0

/ 480 0
/ / 20
/ 1 .2
/ 24 0
5 .0 % # DIV/ 0 !
/ 5
1 .0 % # DIV/ 0 !
/ 15
3 .1 % # DIV/ 0 !
/ 10
/ 3
/
/ 2
/ 0
0 .0 % # DIV/ 0 !
/ 0
0 .0 % # DIV/ 0 !

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2.Step of OEE activity
Setting M/S for FY16
OEE improvement activity Milestone
Supplier name:
Commodity:
Process:

Actual FY13 FY14 FY15 FY16 Ideal

Activity agreement
JPH JPH
OEE %
Availability %
Changeover/setup min/time
Unplanned downtime min/month
Performance %
Quality %
Cycle Time sec
Number of Operator person
Direct person
Material handling person

Key Activity

Preliminary investigation Activity style agreement

Style1) OEE activity by supplier-self
M/SActivity
style agreement Style2) OEE activity with THaNKS

Improvement

To select members by contents of the loss

Progress follow
EX)KAIZEN of preparation : IE

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2.Step of OEE activity

In the case of Style: Implementation in supplier

Activity agreement

In the case of Style 1 or2:

Implementation as THaNKS
Preliminary investigation
By an activity scale, to choice Full-THaNKS or Mini-THaNKS

M/SActivity
Full-THaNKS
style agreement

Improvement

Progress follow
Mini-THaNKS : A period, the schedule sets it every activity

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2.Step of OEE activity

Activity agreement

To progress follow quarterly by buyer.

Preliminary investigation If THaNKS activity done, take over the
result for the buyer.
M/SActivity
style agreement Depending on a remaining problem,
planning new THaNKS activity
Improvement

Progress follow

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3. Definition of OEE
1)What is OEE?

Abbreviated designation of the overall equipment efficiency

An index expressing the entire operation time

2)Defining formula of OEE

Time
OEE Utilization Performance Quality
(Overall Equipment Efficiency) Ratio Product Ratio
Ratio
This index is used to An index to
An index expressing the measure the amount of An index to measure
ratio of the loading the amount of time measure the
time losses generated amount of time
hours of equipment by productivity losses losses due to idling,
operation to the entire minor stoppage and losses generated
stemming from by reworking poorly
operation time equipment failures, speed reductions
manufactured
preparation time spent products
to wait for upstream and
downstream processes,
mistakes made by
workers and so on.

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0. Definition of OEE
3) How to lead activity

To classify OEE decline factors in six loss, and to investigate factor of the loss

4) Classification of operation loss & Six loss

Operation Time Time utilization Ratio (B/A)
Breakdown loss due to
A : Loading hours of production Planned
pause
1
equipment failure
operation time
2 Preparation loss
Breakdow
B : Utilized time n time
Performance Ratio (C/B)

Six loss
3 Reduction in speed loss
C : Net utilized Reduced
speed
duration 4 Minor stoppage loss(The short stop that
short stop that time measurement is impossible
Performing hours Time for impossible

within utilized
reworking
defective
Quality product Ratio
duration products ((Output-No. of defective products)/Output)

5 Reworking loss
6 Start-up loss

Sub KPI for Ideal OEE to be set for Availability & Quality product rate
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3. Definition of OEE
5) Defining formula of Sub KPI

Loading hours Breakdown time

Time Utilization 100

Ratio Loading hours

Standard
cycle time Net cycle time Output
Performance Ratio 100
Net cycle time Utilized time

Number of
Output defective products
Quality Product Ratio 100
Output

- Ideal OEE was set only for Time Utilization and Quality Product ratio
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3. Definition of OEE
6) Others
OEE can calculate even the following expression
By this method, Ignorance time is made clear

Standard Number of

OEE cycle time quality products
Overall Equipment Efficiency 100
Loading hours

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3. Definition of OEE
7)Definition of the term (1)
Term Definition
Result operating The value obtained by subtracting a pause time after producing
time aplanned number of units from the planned operation time and adding
an additionalproduction time to this result.
-For unmanned serial production equipment, the standard duration fo
production operation is defined as the hours of unmanned operation.
Loading hours The time necessary to achieve a production plan.
Planned Planned maintenance down time taken independent of managed
maintenance condition of equipment for such activities as morning and evening
down time gathering, coffee breaks, equipment check before work, autonomous
maintenance, system enhancing activities, sample making, planned
building activities etc. that are required in the management of production
activities.
Utilized time A period of time indicating an actuallyutilized duration of particular
equipment. This value is to be obtained by subtracting breakdown time
due to equipment failures, preparation for production, adjustment of
equipment etc. from the loading hours of the equipment.

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3. Definition of OEE
7)Definition of the term (2)
Term Definition
Breakdown time Periods of time recorded as breakdown within the loading hours of
equipment. Only those that can be recorded under aparticular system of
production should be used.
-Tool change, Breakdown time, Breakdown time to wait for upstream or
downstream processes, Time for quality check and maintenance,etc
Standard cycle The cycle time that serves as the standard when drafting a production
time plan.
Net cycle time This is defined as a time interval actually required to manufacture a
product unit.
The net cycle time is larger than the standard cycle time, and the reason
for this is that speed reductions and operation-speed reductions occur
due to drops in the performance of equipment.
Output Total number of maufactured products.
Number of quality The number obtained when a number of defective products tha are
products discarded or sent back to respective production divisions for reworking is
subtracted from the corresponding total number of products.
Number of A number of defective products that are discarded or sent back for
defective products reworking.

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Reference
Case which changes the cycle time depending on production schedule
To change standard cycle time and prevent a performance rate of operation
from turning worse in an appearance

In case of decrease operator : Change standard cycle time depending on the

number of the operator in cycle time

In case of cut down on equipment speed : Change standard cycle time

depending on cut down equipment speed

Setting JPMH as sub KPI, evaluation of the productivity

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 END

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