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 a consultant in productivity and profitability, CEO of Exegens® and the author of Manufacturing Cost Policy Deployment (MCPD) and Speed-Based Target Profit (SBTP) concepts. His major research areas include manufacturing policy deployment, manufacturing cost improvement and visible profitability of operational excellence by improving productivity. His recent research includes the impact of Industry 4.0 on planning and developing synchronous profitable operations and on information systems of cost and budget in order to substantially improve the operational unit costs.

He has been actively involved in various industrial consulting and training projects for more than 20 years, delivering training/ workshop programs in Productivity, Innovation, Business Transformation and Leadership for over 5,000 participants.

He has a Ph.D. in Industrial Engineering and a Ph.D. in Managerial Accounting. He has an MBA Degree and a BA Degree in Accounting and Computer Science and he is certified Public Accountant in Romania. He has published in various research journals and presented papers at numerous conferences and congresses regarding Productivity, Profitability and Industrial Engineering.

Dr. Alin Posteucă is the author of Manufacturing Cost Policy Deployment (MCPD) and Speed-Based Target Profit (SBTP) concepts, published in four books at Productivity Press – Routledge/ CRC, New York (USA).