Overall Process Effectiveness (OPE) Model

for the Tyre Manufacturing Industry

Model celkovej efektvnosti procesu(OPE) v priemysle vroby
pneumatk
P. Nelson Raja, SM. Kannan
Abstract
Overall Equipment Effectiveness (OEE) analysis is a
system that works for the individual isolated equipment.
Controlling a single machine is insufficient, because, no
machine runs isolated in a factory. In future, an extremely
important objective is to improve the performance of the
whole process or line instead of concentrating only on a
single machine. So, a mathematical model to determine the
Overall Process Effectiveness (OPE) based on TPM metrics
is developed. In any manufacturing process, more than one
machine is involved. The machines may be arranged in
many ways. Each and every machine differs in their performance level, which results in bottleneck machine In this
model the effect on OPE of the process when a bottleneck
machine has been supported by a parallel machine is analysed. The weight consideration, to find the rejection rate in
term of weight (kilogram), is more meaningful and suitable
to get better performance review for the plant. So, yield rate
is included instead of quality rate in the OPE calculation.
This model is validated in a tyre manufacturing industry.
The results shows that the traditional methods like straight
average method are lack in projecting the real picture of the
effectiveness of the whole process in the manufacturing
system. This proposed methodology is helpful to the management by calculating the OPE value accurately and guide
the management to focus its attention more on the improvement activities.
Keywords: Total Productive Maintenance (TPM), Overall Process Effectiveness (OPE), Yield, Bottleneck machine

Abstrakt
Analza celkovej efektvnos zariadenia (OEE) je systm, ktor je mon poui pre individulne izolovan zariadenia. Kontrola jednho zariadenia ja vak nedostaton,
nakoko iadne zariadenie nepracuje v prevdzke izolovane. Do budcnosti je vemi dleit zlepova vkonnos
celho procesu alebo linky, na miesto sstreovania sa iba
na jeden stroj. Pre posdenie celkovej efektivity procesu
(OPE) bol vytvoren matematick model zaloen na metrike TPM. V ubovonom vrobnom procese je zahrnutch
viacero vrobnch strojov. Tieto mu by zoraden viacermi spsobmi. Kad zastnen zariadenie disponuje rozlinmi vkonnostnmi charakteristikami, vrtane zkoprofilovch zariaden. V prezentovanom modely je analyzovan efekt OPE v prpade, ak zkoprofilov zariadenie je paralelne podporovan alm zariadenm. Najvhodnejm
posdenm pre zskanie vkonnostnho prehadu prevdzky je vhov posdenie a njdenie pomeru odmietnutia z
vhovho hadiska (kilogramov). Take v OPE kalkulcii
je namiesto kvalitatvneho pomeru zahrnut prpustn pomer. Tento model bol overovan v podmienkach vroby

70

pneumatk. Vsledky poukazuj na to, e tradin metdy

ako napr. priama priemern metda s nedostaton pri zskavan pohadu na relnu efektivitu celkovho procesu vrobnho systmu. Tto navrhnut metodolgia je npomocn pri manarskych kalkulcich presnejej hodnoty OPE
a vedie manament k zameriavaniu sa na aktivity spojen
zlepovanm.
Kov slov: totlne produktvna drba (TPM), celkov efektivita procesu (OPE), prpustnos, zkoprofilo-v
zariadenie

1 Introduction
Though OEE is a part of TPM, it has been used extensively outside the maintenance paradigm (Kanthi M. N.
Muthiah et al 2006). OEE has been used extensively for
equipment productivity improvement. OEE was recognized
as a fundamental method for measuring equipment performance beginning the late 1980s and early 1990s. Now it is
accepted by management consultants as a primary performance metric. The OEE measure attempts to reveal the
hidden costs associated with a piece of equipment. When it
is applied by autonomous small groups on the shop-floor
together with quality control tools, OEE is an important
complement to the traditional top-down oriented performance measurement systems. OEE is often used as a driver
for improving performance of the business by focusing on
quality, productivity and equipment availability issues and
hence aimed to reduce non-value activities often inherent in
manufacturing processes. This results in reducing the OEE
of the individual machines as well as the OPE of the
production process.

2 Problem Background
In any manufacturing process, Each and every machine
differs in their performance level which results in bottleneck
machine. This results in reducing the OEE of the individual
machines as well as the OPE of the production process.
Kannan,SM.(2001) pointed out that, the reason for the losses will reveal the paths for remedies. Seiichi Nakajima
(1988) advocates, OEE as a metric for the evaluation of
equipment effectiveness. OEE is often used as a driver for
improving performance of the business by reducing nonvalue activities often inherent in manufacturing process. C.
J. Bamber [2003] says, OEE measure can be applied to several different levels within a manufacturing environment.
Kanthi M. N. Muthiah (2006) viewed that, research on
improving the productivity of individual pieces of equipment using OEE is not new. However, the question is what
kind of averaging or normalizing method should be applied to OEE values from all pieces of equipment, to derive

the process level metric. There is no standard method or

metrics for the measurement or analysis of OFE(Richard
Oechsner, 2003). S.H. Huang (2007) stated that factory level metric can be computed by synthesizing the sub system
level metrics, capturing their inter connectivity information.
Nelson raja, et al(2007) has suggested to include the term
yield in the OEE calculation of casting industry.
From these literature, it is clear that, there is no standard
method to measure the Overall Process Effectiveness of a
manufacturing system with mixed configuration. It is
suggested that, the weight consideration, to find the rejecttion rate in term of weight (kilogram), is appeared to be
more meaningful and suitable to get better performance
review for the plant. So, yield rate is included instead of
quality rate in the OPE calculation. Also, the MTBF and
MTTR concept has been used for availability calculation.
For performance rate calculation, the machine having
smallest processing time is taken in to consideration. Availability of the machines (Ap), Performance rate of the machines (Pp) and yield of the process (Yp) have to be
calculated individually and they have to be multiplied to obtain OPE of the process.
(1)
OPE = Ap * Pp * Yp

3 Case Study
3.1 System description of the industry
This model is validated in a tyre manufacturing industry.
The availability, performance and yield rates of the manufacturing system are calculated by using this proposed model and compared with the existing model.

Oil
- 10%}
Fabric =
10%
Bead wire = 05%

3.3 System description of the industry

Data regarding downtime of the machines, product output quantity, rejection rate etc. has been taken into consideration.
(Loading Time - Downtime)
(2)
Availability =
Loading Time

Performace efficiency (%) = (Net operating rate Operating speed rate) 100

Quality =

(output - rejected)
output

(3)
(4)

Table 1 Ope value obtained using traditional method

Tab. 1 Hodnoty OPE zskan tradinmi metdami

Therefore, OPE = availability performance quality

= 0.9923 0.9607 0.9920
= 0.9456
= 94.56 %

3.4 Availability calculations using MTBF

& MTTR concepts
For the proposed model, to calculate the process availability, data regarding downtime of the machines for one
month has been taken into consideration. MTBF and MTTR
have been calculated for each machine from their total
downtime, total repair time and number of items the machine was down. Availability of the machines has been arrived
by using equation given below.
Total Breakdown Time
Number of occurences
Total Re pair Time
MTTR =
Number of occurences
MTBF
Availabili ty =
MTBF + MTTR
MTBF =

(5)
(6)
(7)

Table 2 Availability Calculations

Tab. 2 Kalkulcia dostupnosti

Fig. 1 Schematic Representation of Machine Arrangement

in Tyre manufacturing process
Obr. 1 Schematick zobrazenie usporiadania zariaden
v gumrenskom priemysle

3.2 Data Collection

Tyre manufacturing process:
Size of the tyre: 3.50inch X 10 inch
Weight of the tyre: 3.650 kg
Scrap (trimmed flashes): 0.060 kg
Production / day (3.50 X 10): 8000 Nos
Production / day (all sizes): 25000 Nos
Input materials
Compound = 85% {Rubber
- 50%
Chemical - 5%
Carbon
- 20%

Tyre building and Vulcanizing are having parallel machines. So, to find the availability of these machines, the
model proposed by Didier Willaeys (2001) is taken in to
consideration .Their availability values are, Tyre building =
0.9744, Vulcanizing = 0.9710
Therefore, process availability = Ap = 0.5744

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3.5 Performance rate calculations

of the process
Performance rate of all the machines have been
calculated by taking into consideration of processing time of
each machine, actual output of the bottleneck machine and
actual operating time (using equation given below).
(n * t s )
(8)
Performanc e rate = Pp =
Actual operating time
Where,
n = Number of products produced per shift by bottleneck
machine
ts = processing time of the machine
Table 3 Processing time & Actual output of Machines
Tab. 3 as spracovania a skuton vstup strojov

Here, the actual operating time accounts to per day.

Actual operating time = (8 * 60 * 3) (3* 20) =1380
minutes.
Where, 8 represent the number of hours per shift
60 represent the number of minutes in an hour
3 represent the number of shifts
20 represent the break time in minutes
In performance rate, from processing time of machines, the
bottleneck machine has been found to be E-01 (Extruder
machine).
Table 4 Performance Rate based on the output
of the bottleneck machine
Tab. 4 Vkonnostn pomer zaloen na vstupe
zkoprofilovch zariaden

The machine which is having low performance rate will

control the entire process output. So, that performance rate
is taken as performance rate of the process.
Therefore, Pp = 0.4321

3.6 Yield Rate Calculations

Input materials are accounted in weight
Input materials Weight/day= 32,000 kg
Tyre weight =3.650 kg
Input equivalent/day = 32000 / 3.650 = 8767.1232
Input equivalent = 8767 tyres.
Output of tyres for the given size,
Output Qty / day =8010
Rejection tyres=64
Good tyres /day= 8010 - 64 = 7946
Yield of the process in the system

3.7 Quality Rate Calculation

Quality of the process

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3.8 Calculation Of OPE

Table 5 OPE Values Using Quality Rate With Series
Configuration
Tab. 5 Hodnoty OPE pri pouit kvalitatvneho pomeru
so sriovou konfigurciou

Table 6 OPE Values Using Yield Rate With Series

Configuration
Tab. 6 Hodnoty OPE pri pouit prpustnho pomeru
so sriovou konfigurciou

3.9 Analysis of Bottleneck Machine

in Parallel Configuration
Table 7 OPE Values Using Quality Rate With Parallel
Configuration
Tab. 7 Hodnoty OPE pri pouit kvalitatvneho pomeru
s paralelnou konfigurciou

The machine E-01 is identified as bottleneck machine

and a parallel machine is provided in the process. It has
increased the availability and performance rate of the process and the Overall Process Effectiveness is improved.

Table 8 OPE Values using Yield rate with parallel

configuration
Tab. 8 Hodnoty OPE pri pouit prpustnho pomeru
s paralelnou konfigurciou

3.10 Comparison
Table 9 Comparison of actual OEE and new OEE
of proposed methodology (series, parallel)
Tab. 9 Porovnanie sasnho OEE a novho OEE, ktor
je zaloen na navrhnutej metodolgii (sriov
a paraleln)

4 Conclusion
This model provides a method, to calculate the machines
in series and parallel configurations.The MTBF and MTTR
concepts are used for the calculation of availability. Performance rate of the process is calculated based on the machine having smallest processing time.The tyre processing
industry is one of the key industry, where the raw material
consumption is considered when calculating the yield from
the process.So, the yield rate is included in the OPE calculation instead of quality rate.
The comparision gives 3 inferences.
The OPE value obtained by the traditional method is not
represented the real effectiveness of the process, because,
the OPE value is 94.56 % . But the OPE value obtaied by
the proposed methodology is only 22.49 %.
In the OPE calculation the impact of quality rate and
yield rate are analysed. The results shows that the OPE
value calculated using yield is only 22.49 %, but it is
24.62 % if the quality rate is used..So, for these type of
industries yield should be used as one of the parameter
instead of quality rate.
If a parallel machine is used in the bottleneck machine ,
the proposed methodology gives the OPE value as 51.33
% , which is more than the doubled the value of series
configuration.So, the proposed methodology is sensitive
with respect to the configuration of the manufacturing
system.
P. Nelson Raja
Assitant Professor
pnelsonraja@gmail.com
SM. Kannan
Department of Mechanical Engineering,
Velammal College of Engineering & Technology,
Madurai - 625 009, India
Telephone: 91-452-2465849

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