Overall Equipment Effectiveness. Robert Hansen C.

Чтение книги онлайн.

CHAPTER 3

       FINANCIAL ASPECTS OF OEE

      Many manufacturing organizations have trouble accurately measuring the financial benefits of proposed improvement projects. Important projects are often overlooked or not properly prioritized relative to average projects. As a result, a manufacturing area can get mired in driving false improvement projects, never making significant gains in reliability and productivity. Furthermore, financial accounting methods used by factories vary widely leading to more confusion in identifying meaningful projects.

      Financial statements are the scorecards used to communicate and benchmark a company’s business. Understanding the link between OEE and financial statements is of paramount importance in ranking reliability and improvement projects.

      It is beyond the scope of this book to cover financial accounting methods. However, the book uses a generic simplified approach that can fit most specific cases and give you a relevant first look at financial benefits. In the end, you should enlist the assistance of your company’s financial analyst to help you measure your OEE improvement projects using a method similar to the one presented here. With your analyst’s help, you will know the financial impact of the best projects and can convey the information to your company’s decision-makers in terms they understand and fully support.

      Remember that OEE strategy is to be applied to your factory’s bottlenecks as well as other key areas that are either high cost or critical to the factory operation. By focusing on bottlenecks at key stages in the factory, OEE is a true measure of factory output. After identifying constraints, the next step is to exploit the resource. Your test question should be, “If good improvement occurred in this area, will a major impact occur with the factory’s overall improvement goals?” If your answer is yes, then you are working on the right areas. In turn, if you are successful, you will significantly impact the bottom line.

      To help understand how OEE impacts manufacturing’s contribution to the bottom line (operating income before interest expenses and taxes), we can look at a hypothetical factory in three different situations. In section 3.1, a base case establishes the current situation. Section 3.2 considers the same factory with an improved OEE, making the same amount of product. Section 3.3 then looks at the same factory with an improved OEE, but selling all it can produce. This analysis will demonstrate how even small increases in OEE can leverage into big increases in the bottom line. In sections 3.4 – 3.6, we will use a similar approach to review the impact on another key financial parameter, Return On Assets (ROA) sometimes called the ‘productivity ratio’.

       3.1 Case A: Base Case

      Cost is often the major focus of manufacturing operations, and bottom line income is the key measure for factories. You would generally think that these two factors would always be in line with each other. However, I have seen situations in which factory costs were reduced, yet operating income went down. Cost optimization of a local area was detrimental to the factory as a whole. Maintenance budgets were slashed and mechanic overtime was eliminated. When problems occurred on off shifts, equipment stayed down until regular day shift. Maintenance labor expense was reduced but the factory bottleneck was starved as a result.

      In most cases, however, factory effectiveness correlates very well with operating income. The following example fits the majority of cases where the financial aspects of a company are major critical goals.

      Suppose a factory called R.C. Hansen’s Factory receives raw materials and semi-assembled parts, then provides finished products that are sold for a net price of $100 each. Assume the factory СКАЧАТЬ