CNC 'World class" machine shop key performance indicators

[J Coulston]

Hello All,

 

I am working on developing a few key performance indicators for our captive shop. I have been searching the net for information, most of what I have found have been abstract indicators like world class shops invest in 5axis machines, lights out machining. I have not been able to find very many verifiable metrics to compare our small shops current state to world class standards.

 

What do you currently track at your shop to measure your performance?

Is there anything that you have tracked that turned out to be of little or no value?

How do you verify if any improvements you make are truly beneficial?

What is your shops reasonable scrap percentage rate?

What is your percentage of spindle cutting time or equipment utilization (OEE)?

 

http://www.mmsonline...s-and-equipment

 

Thank you,

[Matthew Hajicek - Singularity]

What do you currently track at your shop to measure your performance?

 

Parts out the door per month. I'd rather it be dollar value of parts out the door per month, since obviously not all parts are equal.

 

As far as making improvements, our approach is to identify one area that's being a process bottleneck, such as inspection or finish machining, then identify what parts of that are the worst, and do what we can to fix it. Then let that settle in a bit, and see if it's still a bottleneck. Lather rinse repeat.

 

Is there anything that you have tracked that turned out to be of little or no value?

 

Spindle up time. If all you want is spindle up time I can program a really slow feed rate and microscopic stepovers. The more efficient my programs are, the less spindle up time you'll have. Working against that, the more efficiently parts are set up the more spindle up time you'll have. It's kind of a race between the two.

[YoDoug®]

I don't know that I necessarily consider the technology in a shop the determining factor of "world class". I think it more how the shop uses the tech they have and how well the business runs. I have many customers that have only 2 axis lathes and 3-4 axis mils but the businesses run smooth, organized, and efficiently. Likewise I have customers with multi-axis and multi-function style machines that are unorganized, and have quality and delivery issues. IMO, being "world class" is more about maximizing the use of the companies technology/personnel to provide an edge over competitors and reach the highest levels of productivity for the capitol invested.

[Guest]

I kind of snicker at least a little when I see/hear the words "World Class". It is so subjective...

 

I think Doug hit the nail on the head, positive indicators for companies are that they are getting the most out of what they have from personell to equipment and everything in between.The smart companies are the ones that are able to see areas for improvement and can for low/no cost come up with viable solutions to improve it. The process could be anything from manufacturing a widget to processing a Purchase/Sales Order.

 

Type of equipment has little to no bearing on "World Class" status IMHO. The bottom line is, "World Class" companies are in a constant mode of continuous improvement. They are always looking for ways to improve the process. Sometimes tha involves a capital purchase (read equipment) and sometimes not.

 

"World Class" Companies invest in their employees. Not just compensation but training, continuing education, etc...

 

JM2C FWIW

[Rotary Ninja]

James, I totally agree with you. But I also think a company that only improves to better their bottom line does not make them a World Class company. Having employees that take pride in their work and having management do the same makes a company stand out. If you have World Class employees and do nothing to help them better their skills and equipment you are going to not only lose work to your competition, you are going to lose your employees to them as well. But there needs to be a strong team in management that understands this and can put it all together. I agree with whoever mentioned fixing the bottlenecks too. Sorry, on my phone here. No matter what, there is always a "weakest link". If companies concentrate there and make improvements the whole company becomes better across the board.

[rogkick]

Measure your shop floor Overall equipment Effectiveness (OEE). (World Class - 85% or better )

 

Availability x Quality x Performance = OEE

 

Availability = Machine Uptime (account for all unplanned downtime losses)

Quality = well..thats scrap..hopefully it doesn't happen.

Performance = ratio of Net Operating Time to Operating Time, or (Ideal Cycle Time x Total Produced)/Operating Time, summarised as Actual Rate of Production/Standard Rate of Production.

 

With OEE you can place a no-blame metric and goal oriented system in place, and people will take pride in trying to achieve it.

When you are not meeting targets, you can analyse the losses contained within each part of the metric, identify the big-hitters through Pareto analysis...and continuously improve.

OEE can also identify training requirements by analysing the source of Performance loss (Speed Loss).

 

HTH

[Zoober]

I kind of snicker at least a little when I see/hear the words "World Class". It is so subjective...

 

I think Doug hit the nail on the head, positive indicators for companies are that they are getting the most out of what they have from personell to equipment and everything in between.The smart companies are the ones that are able to see areas for improvement and can for low/no cost come up with viable solutions to improve it. The process could be anything from manufacturing a widget to processing a Purchase/Sales Order.

 

Type of equipment has little to no bearing on "World Class" status IMHO. The bottom line is, "World Class" companies are in a constant mode of continuous improvement. They are always looking for ways to improve the process. Sometimes tha involves a capital purchase (read equipment) and sometimes not.

 

"World Class" Companies invest in their employees. Not just compensation but training, continuing education, etc...

 

JM2C FWIW

ROR!

The place I left last year was constantly touting their being a "World class company".

During my exit interview with a co-owner, I told him "a world class company has a line at the front door, to get in. Your line goes the wrong way."

The place I'm at now, has it going the right way.

It is obvious every day. There are now 4 of us from the old shop here now. We all said the same thing during our initial tour....

"Is everybody REALLY as happy as it seems?"

Yup.

[Matthew Hajicek - Singularity]

Ideal Cycle Time

 

So multiply by zero?

 

How do you determine the ideal cycle time? Is it the fastest way you've been able to produce a good part so far? What happens if you find a way to cut that in half?

[mkd]

Measure your shop floor Overall equipment Effectiveness (OEE). (World Class - 85% or better )

 

Availability x Quality x Performance = OEE

 

Availability = Machine Uptime (account for all unplanned downtime losses)

Quality = well..thats scrap..hopefully it doesn't happen.

Performance = ratio of Net Operating Time to Operating Time, or (Ideal Cycle Time x Total Produced)/Operating Time, summarised as Actual Rate of Production/Standard Rate of Production.

 

With OEE you can place a no-blame metric and goal oriented system in place, and people will take pride in trying to achieve it.

When you are not meeting targets, you can analyse the losses contained within each part of the metric, identify the big-hitters through Pareto analysis...and continuously improve.

OEE can also identify training requirements by analysing the source of Performance loss (Speed Loss).

 

HTH

So multiply by zero?

 

How do you determine the ideal cycle time? Is it the fastest way you've been able to produce a good part so far? What happens if you find a way to cut that in half?

math is philosophy

philosophy is math

formulating a formula is the form i would take in this forum thread.

[rogkick]

So multiply by zero?

 

How do you determine the ideal cycle time? Is it the fastest way you've been able to produce a good part so far? What happens if you find a way to cut that in half?

 

Multiply by Zero: Well yeah, if you produce nothing...then your performance is Zero. Then you ask yourself...why did the machine produce nothing...and you fix it, in a methodical fashion.

 

The ideal cycle time is the fastest speed you can operate before quality is compromised, call it the theoretical cycle time.

Can be the best cycle time achieved, the programmed cycle time, or an estimation.

 

If you cut the time in half, you have raised the bar and improved your process, and your metric has a new target.