Early Equipment Management

Early Equipment Management (EEM) is designed to connect the manufacturing and commercial goals in a manner that allows organizations to leverage the foundation that has been established through standardized processes. This methodology brings together all necessary functions at the appropriate time to effectively plan, design, manufacture (purchase) and start-up new equipment at the expected cost and performance rates.

Elements of Early Equipment Management

The Early Equipment Management strategy consists of these key elements:

• Stakeholder planning
• Data collection
• Integration of project management tools & methodologies
• Stage gate execution
• Verification and review processes

Lifecycle of Early Equipment Management

There are 6 steps to follow when implementing Early Equipment Management in your plant to ensure sustainable improvement. Developing the right plan and applying the right strategies are key to

1. Establish the team and develop the vision: Organizing the pillar team with cross-functional representation ensures participation from critical functional areas along with other teams that allow for input and best practice sharing. Begin by establishing a mission & objectives for the group along with required measurements.
2. Understand the current situation: Understand the business need for new equipment and potential for future capital investment. This includes equipment lifecycle planning, data collection and gear integration planning, and business input planning. Communication and coordination are imperative to successfully understanding the current situation and planning for future investment.
3. Utilize project management tools: Apply comprehensive principles of project management to plan and start-up new equipment. This is all about initiating, developing, and implementing the plan. It is important to understand that this also requires having measures of success in place to validate the project and integrate the findings.
4. Implement the EEM process: Implement methodology for designing, planning, verification and installation of new equipment through:
   1. Concept planning
   2. Equipment planning
   3. Equipment design
   4. Manufacture equipment
   5. Preliminary testing
   6. Install equipment
   7. Commission new equipment
   8. Full production
5. Verify success and ensure the results are sustained: In order to sustain improvements, you must verify and ensure the rights steps are in place, integrate countermeasures into other pillar activities, and establish appropriate metrics / reports. Creating baseline measurements allows your manufacturing organization to see how your performance is trending from safety incidents to product quality.
6. Conduct an evaluation or review of the system to for continuous improvement opportunities: An annual evaluation of the Early Equipment Management pillar allows your organization to identify opportunities for improvement and implement enhancements.

An annual evaluation of the Early Equipment Management pillar allows your organization to identify opportunities for improvement and implement enhancements.

Impact of Implementing EEM

Successful integration of the EEM methodologies using a team approach can lead to more efficient machinery installations that save time and money in the short and long term. Many organizations have been able to optimize new equipment installation spending, reduce new equipment installation lead-time, and reduce the number and cost of new equipment change orders through proper implementation of EEM processes. There are also several intangible benefits that we have seen in working with our clients such as; increased job security, enhanced associate morale, alignment of business, manufacturing and support areas, and improved teamwork. Involving the right people at the right time will reduce risk and having prove and standard methods can create a competitive advantage and allow for flexibility when running products.

Is your organization ready establish a standardized, repeatable process for new equipment introduction? The operational excellence consulting team at Performance Solutions by Milliken can help. Contact us today.