Set-up standardization and its impact on OEE

By Dr. Alin Posteucă

Companies are aware that production planning has to take into account each type of set-up time.

Practitioners admit that they need set-up time standardization (SOP for set-up) for: (1) increasing flexibility and (2) continually improving set-up time. Sometimes, it is difficult for them to convince managers that for this set-up time no production should be planned (as with other scheduled downtime: waiting for materials, planned maintenance, etc.). Set-up standardization (SOP) is achieved through SMED (the path with small steps), MDC (the innovative path) etc.

But the set-up standard can generate significant variations. I often explain to practitioners that only negative variations, those that generate overtime, should be included in the OEE structure. For these variations, from a certain level upwards, I recommend the development of projects to solve problems (for example with A3) in order to re-fit into the set standard or KAIZEN projects to restore/improve the set-up standard.

So, to you, the SOP for set-up time are in the scheduled downtime structure? Is set-up overtime included in the OEE? Do you run problem solving projects and KAIZEN projects for set-up?

Source: Alin Posteuca on LinkedIn

Dr. Alin Posteucă is the founder and CEO of Exegens®, a global consulting firm specialized in cost competitiveness improvement and operational excellence. It helps customers create and implement profitable strategies and cost improvement programs that ensure a unit cost improvement of at least 6% per year for each of the next 5 years by maximizing the efficiency and effectiveness of operations.

He is the author of Manufacturing Cost Policy Deployment (MCPD) concept, published in three books at Productivity Press – Routledge/ CRC, New York (USA). The latest, ”Manufacturing Cost Policy Deployment (MCPD) Profitability Scenarios: Systematic and Systemic Improvement of Manufacturing Costs” (October 2018) is based on its main belief that the annual and multiannual target profit can be achieved irrespective of the sales volumes, increasing or decreasing. He is also the co-author of the book ”Manufacturing Cost Policy Deployment (MCPD) and Methods Design Concept (MDC): The Path to Competitiveness”, published at Productivity Press New York (USA), 2017, as well as the author of the book ”Manufacturing Cost Policy Deployment (MCPD) Transformation: Uncovering Hidden Reserves of Profitability”, published at Productivity Press din New York (USA), February 2018.

Alin Posteucă has more than 20 years of experience in Cost Improvement consulting and training. He has a PhD degree in Industrial Engineering and a PhD degree in Economics.