Based on the available production data for shifts in case study, evaluate whether Hi-Quality (P) Ltd. has achieved world class performance under TPM…

7 Calculation of Planned Production Time Mins. Total time 480 Less: Planned downtime tea break 15 lunch break 30 Planned Production Time 435 Availability Ratio = (435-20)/435×100 = 95.4% Actual Production = 200 BOTTLES per shift Standard time = 2 minutes Standard Time Required = 200 units × 2 minutes = 400 minutes Actual Time Taken = 435 mins. – 20 mins. = 415 minutes Performance Ratio = 400/415×100 = 96.39% Quality Ratio = (200-20)/200×100 = 90% Thus, OEE = 0.954 × 0.9639 × 0.90 = 82.76% Evaluation The Overall Equipment Effectiveness (OEE) for the given scenario stands at 82.76%, which falls short of the globally recognized benchmark of 85%, as proposed by Seiichi Nakajima. A closer analysis reveals that while the Availability Ratio (95.4%) and the Performance Ratio (96.39%) surpass the ideal benchmarks of 90% and 95%, respectively, the Quality Ratio is notably deficient at 90%, significantly below the target of 99%. This disparity highlights a critical issue with product quality, as a defect rate of 10% (20 defective units out of 200) undermines the equipment's overall effectiveness, despite strong performance in other areas. The high Availability Ratio reflects that the equipment is well-maintained and experiences minimal downtime, indicating effective maintenance practices and operational reliability. Similarly, the Performance Ratio suggests that the production speed closely matches the standard, with only a slight deviation in actual time taken (415 minutes) compared to the standard time required (400 minutes). These metrics demonstrate that the machine is being used efficiently and with minimal delays. However, the Quality Ratio indicates substantial challenges in achieving defect-free production. This could stem from several factors, including process inefficiencies, substandard input materials, insufficient operator training, or inadequate quality control measures. The significant gap in quality performance has a compounding effect on the OEE, as even minor defects can lead to wasted resources, increased rework, and diminished customer satisfaction. To bridge this gap and achieve world-class performance, it is critical to address the root causes of quality issues. Implementing stricter quality assurance protocols, enhancing supplier audits to ensure raw material compliance, and training operators to adhere to quality standards are immediate steps to consider. Additionally, leveraging advanced monitoring tools, such as real-time quality checks using IoT or automated systems, can help detect and address defects during the production process. These measures will not only improve the Quality Ratio but also contribute to sustained operational efficiency and reliability. In conclusion, while the strong Availability and Performance ratios contribute positively to the OEE, the subpar Quality Ratio is a bottleneck that must be resolved to meet the ideal benchmark of 85% and achieve world-class manufacturing standards. By focusing on quality improvements, the overall effectiveness of the equipment can be optimized, aligning the company with global best practices in Total Productive Maintenance (TPM). Note: Any 2 points for evaluation are sufficient.