Description and some studies

1. Overall Equipment Effectiveness & Capacity Training

19. Quality losses Valuable Operating Time O.E.E. = Availability X Performance X Quality Ideal Cycle Time x Output Operating Time Net Operating Time Speed Losses 3. Idling and Minor Losses (Unrecorded Downtime) OEE Formulas Loading Time - Downtime Loading Time Downtime Losses Operating Time 2. Setup and Adjustment Loading Time 6 Big Losses Equipment 1. Frequent Breakdowns (Recorded Downtime) OPERATING RATE 4. Drop in Cycle Time PERFORMANCE RATE 6. Start-up Scrap 5. In-process scrap Total Produced - Scrap Total Produced QUALITY RATE O.E.E. in Relationship to the 6 Big Losses

20. O.E.E. = Availability X Performance X Quality World Class O.E.E. = 90% X 95% X 99% = 85% O.E.E. - Goals

23. 0 50 100 150 200 250 300 350 400 450 500 39 MIN DOWNTIME ACTUAL OPER. TIME = 421 MIN STD. TIME TO MAKE 300 PIECES 74”/PC = 370 MIN STD TIME TO MAKE 292 GOOD PIECES: 360 MIN 51 MIN LOST TIME OPERATING RATE 421MIN 460 MIN 91.52% PERFORMANCE RATE 370MIN 421 MIN 87.89% QUALITY RATE 292 PCS 300 PCS 97.33% 10 MIN SCRAP TIME MINUTES 480’ WORK TIME 20’ BREAKS AVAIL. OPER. TIME (LOAD TIME)= 460 MIN OVERALL EQUIPMENT EFFECTIVENES = X X = X X X X O.E.E. Case Study 1: O.E.E. Graph 78.3% =

24. 0 50 100 150 200 250 300 350 400 450 500 39 MIN DOWNTIME ACTUAL OPER. TIME = 421 MIN STD. TIME TO MAKE 300 PIECES 74”/PC = 370 MIN STD TIME TO MAKE 292 GOOD PIECES: 360 MIN 51 MIN LOST TIME OPERATING RATE 421MIN 460 MIN 91.52% PERFORMANCE RATE 370MIN 421 MIN 87.89% QUALITY RATE 292 PCS 300 PCS 97.33% 10 MIN SCRAP TIME MINUTES 480’ WORK TIME 20’ BREAKS AVAIL. OPER. TIME (LOAD TIME)= 460 MIN OVERALL EQUIPMENT EFFECTIVENES = X X = X X AVAIL. OPER. TIME (LOAD TIME)= 460 MIN STD TIME TO MAKE 292 GOOD PIECES: 360 MIN OR: 360 MIN 460 MIN = 78.3% X X O.E.E. Case Study 1: O.E.E. Graph 78.3% =

27. OVERALL EQUIPMENT EFFECTIVENESS = 82.8% X 69.41% X 96.92% = 55.5 % - OR - (STD TIME TO PAINT 1345 GOOD RACKS)/(LOADING TIME)=(733 MIN/1320 MIN)=55.5% 0 200 400 600 800 1000 1200 1400 1600 TOTAL COMBINED DOWNTIME = 227 MIN 120’ BREAKS 1320’ LOADING TIME 334 MIN LOST TIME 26 MIN STD TIME FOR 47 SCRAP RACKS OPERATING RATE 1093 MIN 1320 MIN = 82.8% PERFORMANCE RATE 759 MIN 1093 MIN = 69.41% QUALITY RATE 1345 RACKS 1392 RACKS = 96.62% O.E.E. Case Study 2: O.E.E. Graph STANDARD TIME TO MAKE 1345 GOOD RACKS = 733 MIN STANDARD TIME TO PAINT 1392 RACKS 759 MIN ACTUAL OPER. TIME 1093 MIN

30. 0 500 1000 1500 2000 2500 3000 3500 OVERALL EQUIPMENT EFFECTIVENESS = 82.3% X 91.0% X 96.2% = 72.0 % - OR - (STD TIME TO MOLD 6069 GOOD PIECES)/(LOADING TIME)=(2074 MIN/2880 MIN)=72.0% 2880’ LOADING TIME (Relief Style Breaks) 214 MIN LOST TIME 82 MIN STD TIME FOR 241 SCRAP PARTS OPERATING RATE 2370 MIN 2880 MIN = 82.29% PERFORMANCE RATE 2156 MIN 2370 MIN = 90.97% QUALITY RATE 6069 PCS 6310 PCS = 96.18% STANDARD TIME TO MOLD 6069 GOOD PIECES 2074 MIN STANDARD TIME TO MOLD 6310 PIECES 2156 MIN ACTUAL OPER. TIME 2370 MIN TOTAL COMBINED DOWNTIME = 510 MIN O.E.E. Case Study 3: O.E.E. Graph