Tools, techniques, and initiatives that enable a
plant or company to thrive under conditions of unpredictable change. Agile
manufacturing not only enables a plant to achieve rapid response to customer
needs, but also includes the ability to quickly reconfigure operations-and
strategic alliances-to respond rapidly to unforeseen shifts in the marketplace.
In some instances, it also incorporates "mass customization" concepts
to satisfy unique customer requirements. And, in the broadest sense, it includes
the ability to react quickly to technical or environmental surprises.
A measure of asset management that is calculated by
dividing the value of annual plant shipments at plant cost (for the most recent
full year) by the average total inventory value at plant cost. Total inventory
includes raw materials, work in process, and finished goods. Plant cost includes
material, labor, and plant overhead.
Any point at which production is slowed because
demand placed on a resource is equal to or more than capacity. Bottlenecks
identify machines that are critical to large sections of the production cycle.
A known temporary fix to a problem that may have to
be performed one or more times until a permanent fix can be performed. ( A
permanent fix may consist of scheduled down time requirements, re-engineering,
new procedural developments, ect.)
A manufacturing approach in which equipment and
workstations are arranged to facilitate small-lot, continuous-flow
production-often in a U-shaped cell. In a manufacturing "cell," all
operations necessary to produce a component or subassembly are performed in
close proximity, thus allowing for quick feedback between operators when quality
problems and other issues arise. Workers in a manufacturing cell are typically
cross-trained and, hence, able to perform multiple tasks as needed.
Computer-based systems for product design that may
incorporate analytical and "what if" capabilities to optimize product
designs. Many CAD systems capture geometric and other product characteristics
for engineering-data-management systems, producibility and cost analysis, and
performance analysis. In many cases, CAD-generated data is used to generate
tooling instructions for computer-numerical-control (CNC) systems.
A variety of approaches in which computer systems
communicate or "inter-operate" over a network. Typically, CIM systems
link management functions with engineering, manufacturing, and support
operations. In the factory, CIM systems may control the sequencing of production
operations, control operation of automated equipment and conveyor systems,
transmit manufacturing instructions to equipment or operators, capture data at
various stages of the manufacturing or assembly process, facilitate tracking and
analysis of test results and operating parameters, or a combination of the
above.
Software-based systems that analyze operating
conditions of production equipment-vibration, oil analysis, heat, etc.-and
equipment-failure data, and apply that data to the scheduling of maintenance and
repair inventory orders and routine maintenance functions, thus preventing
unscheduled machine downtime and optimizing a plant's ability to process product
at optimum volumes and required quality levels.
A form of depreciation that directly assesses
and measures the run down in service potential of an asset. It is based on
an auditable and cost-justified asset renewal plan. The cost of replacing
lost service potential over the next 10-30 years (the exact period depends on
the agency and the nature of the assets involved) is expressed as an annuity
over the period. That annuity is the depreciation estimate. CBD is
re-estimated on a continuous basis, based on a rolling future
period. It is only used for assets which are essentially renewable
rather than replaceable, i.e. infrastructure assets.
Arrangement with supplier companies in which the
supplier monitors the customer's inventory and automatically replaces used
materials, eliminating the need for purchase orders and related paperwork.
The processes, functions, and activities in a plant
or company that are its "life blood"-typically those activities for
which the enterprise derives the greatest return for its investments or those
that intrinsically align the enterprise with its core market.
The cost of lost opportunity.
CoUR programs study plants as links in a chain for a reliability system, and the
costs incurred when the plant, or a series of plants, fail to produce the
desired result. The cost can be categorized in maintainability and reliability
cost.
A statistical calculation of process capability
based on the relationship between process variability and design specifications.
A good Cpk value indicates that the process is consistently under control-i.e.,
within specification limits-and is also centered on the target value. A Cpk
value of 1.33 is typically considered a minimum acceptable process capability;
as the Cpk value approaches 2.0, the process approaches Six Sigma capability
(3.4 defective units per million). The ability to achieve high Cpk values is
often related to how tight the specifications are set.
Teams of employees representing different functional
disciplines and/or different process segments who tackle a specific problem or
perform a specific task, frequently on an ad hoc basis.
Skill-development practices that require or
encourage production workers and other employees to master multiple job skills,
thus enhancing workforce flexibility.
A system customized per facility/organization and
designed to meet the total measurement, control and real-time information
requirements of today's process plants. A single application to connect to
subsystems such as maintenance (CMMS), statistical process
control (SPC), and advanced control.
The production or assembly of parts and/or finished
products that are recognizable as distinct units capable of being identified by
serial numbers or other labeling methods-andmeasurable
as numerical quantities rather than by weight or volume.
(EDI) links-Information-system linkages, based on
communication protocols and document formats, which permit inter-company
computer-to-computer communications. EDI links not only speed communication, but
also eliminate re-keying of information and reduces the opportunity to introduce
errors. A typical EDI application might speed information exchange between a
customer and supplier company for purchase orders, invoices, or other
transactions. EDI communications are often facilitated through "electronic
mailbox" systems on third-party value-added networks.
Empowered teams share a common workspace and/or
responsibility for a particular process or process segment. Typically empowered
teams have clearly defined goals and objectives related to day-to-day production
activities, such as quality assurance and meeting production schedules, as well
as authority to plan and implement process improvements. Empowered work teams
typically do not assume traditional managerial responsibilities.
A period of time when the equipment is in condition
to perform its intended function, but is operated to conduct engineering
experiments. (SEMI
E10-96)
An extension of MRP II software. ERP systems
typically claim the ability to achieve tighter (or "seamless")
integration between a greater variety of functional areas, including materials
management, supply-chain management, production, sales and marketing,
distribution, finance, field service, and human resources. They also provide
information linkages to help companies monitor and control activities in
geographically dispersed operations; and, in a fully deployed mode, ERP systems
facilitate capture of transactional data into data warehouses to support
executive decision-making systems.
extension of organization's intranet: an
extension of the intranet of a company or organization. An extranet gives
authorized outsiders, for example, customers, suppliers, or business partners,
controlled access to parts of the intranet.
Software-based systems that enable simulation of
production scheduling (and determination of delivery dates) based on actual
unit/hour capacity at each step in the production routing. Finite scheduling
systems, running on desktop computers, often compensate for the "infinite
capacity" assumptions built into capacity-planning modules in traditional
MRP II systems.
A measure of asset management that typically is
calculated by dividing the value of total annual shipments at plant cost (for
the most recent full year) by the average finished-goods inventory value. Plant
cost includes material, labor, and plant overhead.
A technique to find the weaknesses in designs before
the design is realized, either in prototype or production. The technique is an
applied form of problem solving, and can be used in a large range of engineering
disciplines.
The percent of finished-products that meet all
quality-related specifications at a final test point. In process industries,
yield is often calculated as the percentage of output that meets target-grade
specifications (excluding saleable "off-grade" product).
A plant configuration and organization structure in
which equipment and manpower is grouped to create essentially self-contained
"mini-businesses," each with a specific product-line or customer
focus. A single plant may be divided into several focused-factory units,
designed around process flows, each of which has control over such support
activities as maintenance, manufacturing engineering, purchasing, scheduling,
and customer service.
Software that provides front-end input to master
production scheduling systems and helps to optimize inventory planning. Such
software not only takes into account historical demand trends, but also may
calculate the impact of planned sales promotions, price reductions, and other
factors that cause spikes in demand levels.
An international quality-process auditing program,
based on a series of standards published by the International Standards
Organization in Geneva, Switzerland, through which manufacturing plants receive
certification attesting that their stated quality processes are adhered to in
practice.
Implementation of "just in time"
techniques to reduce lot sizes, reduce setup times, slash work-in-process
inventory, reduce waste, minimize non-value-added activities, improve
throughput, and reduce manufacturing cycle time. JIT production typically
involves use of "pull" signals to initiate production activity, in
contrast to work-order ("push") systems in which production scheduling
typically is based on forecasted demand rather than actual orders. In many
"pull" systems, a customer order/shipment date triggers final
assembly, which in turn forces replenishment of component WIP inventory at
upstream stages of production.
KPI refers to the short list of measurable
parameters that will indicate how well the business is doing at attaining its
goals. In a manufacturing quality scenario, this may be the amount of scrap or
rework that gets metered. In a service quality scenario, such as an insurance
company, this may be the open inventory of unprocessed claims. In brand
management, market share in itself and in comparison with competing brands is
sure to be relevant. In logistics, on-time deliveries, empty return loads, or
missing items are candidate indicators.
Life
Cycle Costing is a framework for evaluating design options on the basis of all
of the costs that the asset will incur over its lifetime. Present Value
Discounting is applied to all of the costs to account for the fact that a dollar
today is worth more than a dollar tomorrow. Life cycle costs include the
initial purchase cost, ongoing maintenance and periodic updating. Some
studies include operating costs.
Life
Cycle Costing is sometimes referred to as “Terotechnology” but
terotechnology is really the ‘science’ of life cycle costing; it is
concerned more with the analysis of component data and derivation of the
appropriate component life cycles than with application.
Terotechnology is a more common term in manufacturing industry where it is
applied to analyzing the life spans of relatively short lived plant and
equipment rather than longer lived infrastructure assets.
A measure of a plant's ability to retain workers,
expressed as a percentage of the production workforce that departs annually-or
an annualized rate of employee departures. High turnover rates often indicate
employee dissatisfaction with either working conditions or compensation.
Also known as Labor Per Unit, is calculated using
vague estimates of material, Direct Labor, and overhead cost. The cost per unit
is normally used for external reporting only, not management decision.
Example: Direct labor (operator) X 30% fringe
benefits = LPP = LPU
Includes quality-related costs, direct and indirect
labor, equipment repair and maintenance, other manufacturing support and
overhead, and other costs directly associated with manufacturing operations. It
typically does not include purchased-materials costs or costs related to sales
and other non-production functions.
The length of time from the start of production and
assembly operations for a particular (finished) product to the completion of all
manufacturing, assembly, and testing for that product or specific customer
order. (Does not include front-end order-entry time or engineering time spent on
customized configuration of non-standard items.)
Software-based systems that provide a link between
planning & administrative systems and the shop floor. It can link MRP
II-generated production schedules to direct process-control software. An element
of computer-integrated manufacturing, MES encompasses such functions as planning
and scheduling, production tracking and monitoring, equipment control,
maintaining product histories (verifying and recording activities at each stage
of production), and quality management.
Mean Cycles Between Failures; the average number of
equipment cycles between failures; total equipment cycles divided by the total
number of failures during those cycles (includes both product and non-product
cycles).
An indicator of expected system reliability
calculated on a statistical basis from the known failure rates of various
components of the system. MTBF is usually expressed in hours. Over a long
performance measurement period, the measurement period divided by the number of
failures that have occurred during the measurement period.
The average time to correct a failure and return the
equipment to a condition where it can perform its intended function; the sum of
all repair time (elapsed time, not necessarily total man hours) incurred during
a specified period (including equipment and process test time, but not including
maintenance delay), divided by the number of failures during that period.
MRP II - Software-based Manufacturing Resources
Planning systems that translate forecasts into master production schedules,
maintain bills of material (lists of product components), create work orders for
each step in the production routing, track inventory levels, coordinate
materials purchases with production requirements, generate "exception"
reports identifying expected material shortages or other potential production
problems, record shop-floor data, collect data for financial reporting purposes,
and other tasks depending on the configuration of the MRP II package.
Machinery Information Management Open Systems
Alliance
MIMOSA advocates open exchange of equipment
condition related information between condition assessment, process control and
maintenance information systems through published, consensus, conventions. This
to gain greatest value by combining vital condition information from multiple
sources for collective evaluation, reaching accurate determinations of current
condition and projected lifetime and communicating results in a useful,
understandable form.
MIMOSA is committed to preserving the advantages,
effectiveness and rich detail contained in specialized applications such as
vibration, temperature, lubricating oil and electric motor monitoring and
analysis systems within an integrated enterprise information structure.
The overall performance of a single piece of
equipment,
or even an entire factory, governed by the cumulative impact of 3 factors:
Availability, Performance Rate (which includes machine speed), and Quality Rate.
(Ex: 50% Availability (0.5) x 70% Performance Rate (0.7) x 20% Quality Rate
(0.8) = 30%OEE)
Use to measure how effective in relationship to the
planned production schedule.
An OEM (original equipment manufacturer) is a company that build a product
that it sells under its own company name. An air compressor manufacturer is an
OEM, and the manufacturer of the PLC inside that air compressor is an OEM.
The percentage of time that ordered products are
received by customers by the specified time or date. Some plants will base this
calculation on the date "promised" to customers, but better facilities
typically will calculate it against dates "requested" by customers.
Capable of automatic communication and information
exchange without any proprietary or system specific, software links. Can a
system access information resident in programs from different suppliers without
special software?
Outsourcing - Shifting of production work or support activities to an outside
(third-party) supplier.
The amount of time officially scheduled in the
production plan, which includes, no orders, changeovers and planned maintenance.
Planning and scheduling technologies - A variety of software-based advanced
planning, scheduling, and optimization systems.
Where possible, this should be calculated as:
plant-level profitability (PLP) divided by average net assets (ANA) employed.
PLP can be calculated as annual value of shipments minus materials costs and
manufacturing costs. ANA should include fixed assets, inventory, receivables,
and cash minus accounts payable and other current liabilities.
Practices that seek to prevent unscheduled machine
downtime by collecting and analyzing data on equipment conditions. The analysis
is then used to predict time-to-failure, plan maintenance, and restore machinery
to good operating condition. Predictive maintenance systems typically measure
parameters on machine operations, such as vibration, heat, pressure, noise, and
lubricant condition. In conjunction with computerized maintenance management
systems (CMMS), predictive maintenance enables repair-work orders to be released
automatically, repair-parts inventories checked, or routine maintenance
scheduled.
The manufacturer of products such as chemicals,
gasoline, beverages and food products that typically are produced in
"batch" quantities rather than discrete units. Many process operations
require inputs such as heat, pressure, and time (for thermal or chemical
conversion).
Is a measure of the relative ease and economy of
producing a product, using conventional and flexible manufacturing methods. The
process must not sacrifice functionality, performance, effectiveness or quality.
Software-based systems that link, manage, and
organize product-related data from various sources-both internally and
externally (from suppliers)-across various computer platforms, divisions,
departments, and geographic locations. PDM incorporates CAD files, manufacturing
data, and documents to reduce engineering design times; ensures timely access to
consistent up-to-date product information; and improves information flow,
cross-functional communications, and support services.
A period of time when the equipment is performing
its intended function. This includes regular production (including loading and
unloading of product), rework, work for third parties, and engineering runs done
in conjunction with production. (SEMI
E10-96)
A variety of techniques, such as SMED (single-minute
exchange of dies), which reduce equipment setup time and permit more frequent
setups, thus improving flexibility and reducing lot sizes and manufacturing
cycle times.
A measure of asset management that typically is
calculated by dividing the value of total annual shipments at plant cost (for
the most recent full year) by the average raw-material value at plant cost.
Plant cost includes material, labor, and plant overhead.
A methodology used to define a maintenance program
while having reliability as an input to the decision making process. Originally
developed by the aviation industry and known as MSG-3 (Maintenance Steering
Group), Reliability Centered Maintenance or RCM has since been adopted by many
different industries.
Instantaneous (or nearly instantaneous)
communication of electronically captured data (typically quality data) to
process operators or equipment to enable rapid or automated adjustments to keep
production processes operating within quality parameters.
A technique for uncovering the cause of a failure by
deductive reasoning down to the physical and human root(s), and then using
inductive reasoning to uncover the much broader latent or organizational root(s.)
Practices intended to constantly improve safety
within a plant or across a company, including, but not limited to, safety teams,
safety awareness programs and communications, safety "days," safety
training, and setting of continuous-improvement goals targeting safety metrics,
such as OSHA reportable or lost-workday rates.
Supervisory Control And Data Acquisition - SCADA
system refers to the combination of telemetry and data acquisition. It consists
of collecting information, transferring it back to a central site, carrying out
necessary analysis and control, and then displaying this data on a number of
operator screens. The SCADA system is used to monitor and control a plant or
equipment. Control may be automatic or can be initiated by operator commands.
.
SCADA system incorporates both hardware and software and provides central
monitoring and control of plant and facilities.
.
SCADA typically consist of a “master” terminal unit (MTU) and one or more
“remote” terminal units (RTU).
A period of time when the equipment is not available
to perform its intended function due to planned downtime events. These include
maintenance delay (delay after an interrupt is reported, but before anyone
arrives to repair it); production test; preventive maintenance; change of
consumables; setup; and facilities-related downtime. (SEMI
E10-96)
Nearly autonomous teams of empowered employees,
including hourly workers that share a common workspace and/or responsibility for
a particular process or process segment. Typically such teams have authority for
day-to-day production activities and many supervisory responsibilities, such as
job assignments, production scheduling, maintenance, materials purchasing,
training, quality assurance, performance appraisals, and customer service.
A coding system of the U.S. government used to
identify specific economic sectors. Coding for manufacturers encompasses the
two-digit numbers of 20 through 39.
A period of time, other than non-scheduled time,
when the equipment is in a condition to perform its intended function,
facilities are available, but it is not operated. This includes time when no
operator is available, time when no product is available (no boards or
components), and waiting on upstream or downstream equipment. (SEMI
E10-96)
Use of variation analysis, with manual or
computerized control charts, to detect irregular variations in a process as
quickly as possible. Often, SPC charts display upper and lower limits for part
characteristics or process parameters and show trends over time, indicating when
the limits are exceeded (or are about to be exceeded) and corrective actions are
needed. In some closed-loop systems, adjustments are made automatically when
readings indicate that a control limit is being approached.
All time during the period being measured (at the
rate of 24 hours per day, seven days per week.) Also equal to the sum of time
spent in all six equipment time categories. (SEMI
E10-96)
A multifaceted, company-wide approach to improving
all aspects of quality and customer satisfaction-including fast response and
service, as well as product quality. TQM begins with top management and diffuses
responsibility to all employees and managers who can have an impact on quality
and customer satisfaction. It uses a variety of quality tools such as QFD,
Taguchi methods, SPC, corrective-action response teams, cause-and-effect
analysis, problem-solving methodologies, and fail-safeing (or "poka-yoke"
methods).
A method of recording and analyzing all significant
cost metrics associated with equipment downtime in a building or manufacturing
facility. TDC provides a way to assign time and/or monetary value to previously
considered “non-tangible” cost of downtime. Also TDC includes downtime
factors commonly overlook to arrive at a more true value for the cost of
downtime.
A percentage figure that represents the portion of
production of good parts versus total available time. (time being all hours in a
day, all days in a month, and all months in a year)
PR
TPR X SP
Theoretical
production rate (parts per hour) =TPR
Hours in
measurement sample = SP
Actual good
products produced in SP = PR
(Example:
7 day sample = 24X7 = 168 hours, manufacturer rates machine at 2 parts per hour
capability, you ran 168 good parts in 168 hours.)
Your TEEP=
(2X168)/168=50% TEEP
Use to measure how effective in relationship to
theoretical goal of equipment/facility being scheduled to run 24/7/365.
A period of time when the equipment is not available
to perform its intended function due to unplanned downtime events. These include
maintenance delay, repair, change of consumables, out-of-spec input, and
facilities-related downtime. (SEMI
E10-96)
The amount or value of all materials, components,
and subassemblies representing partially completed production; anything between
the raw material/purchased component stage and finished-goods stage.
A measure of the speed at which work-in-process
moves through a plant. Typically calculated by dividing the value of total
annual shipments at plant cost (for the most recent full year) by the average
WIP value at plant cost.
A somewhat arbitrary designation that can be
supported by performance results related to various manufacturing metrics.
(World-class metrics may vary from one industry to another.) Typically, it
denotes "best in class" producers on a worldwide basis. In the
broadest sense, world-class manufacturers are those perceived to deliver the
greatest value at a given price level.
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