A Queensland moulder believed its plant was full and prepared a case for three new presses. A detailed capacity model found 2,900 press hours a year hidden behind high utilisation, enough to defer about $1.6 million of capital.
Key numbers
A moulder in Queensland had a business case ready for three new presses. Utilisation averaged 91%, demand was growing and the plant felt full: presses were busy, schedules were tight and planners struggled to fit new work in. Before signing off the capital, the directors asked for a detailed capacity study.
What the data showed
A capacity model was built press by press, using real data on changeovers, breakdowns, breaks, scrap and product allocation, rather than nameplate rates.
High utilisation was masking large losses. The presses were "busy", but much of that time was spent changing over, broken down, stopped for breaks or making scrap. In total, around 2,900 press hours a year could be released through five levers: shorter changeovers (960 hours), fewer breakdowns (720), running through breaks (540), scrap reduction (410) and better product-to-press allocation (270).
This is the hidden capacity described in OEE: the one number every plant manager should know and the logic of finding your bottleneck: exploit what you have before buying more.
What changed
- SMED on the 20 most frequently changed tools, the largest single source of capacity.
- Preventive maintenance targeted at the three least reliable presses, using breakdown history to focus effort.
- Staggered breaks, so critical presses kept running while operators rotated.
- Products reallocated to better-matched presses, reducing cycle times and changeovers caused by poor matching.
- Scrap reduction projects on the highest-loss products.
Results
Around 2,900 press hours a year were released, enough to meet forecast growth and defer an estimated $1.6 million of capital expenditure. Average utilisation fell from 91% to 78%, not because the presses were less productive, but because the same output now needed fewer hours, leaving headroom for growth.
Why utilisation misled
Utilisation measures how busy equipment is, not how productively it is used. A press that is busy changing over or making scrap counts as utilised. Only by breaking busy time into its components did the real capacity become visible.
Lessons for your operation
- High utilisation does not mean a plant is full.
- Build a capacity model from real loss data before requesting capital.
- Changeovers and breakdowns are usually the largest hidden capacity.
- Allocate products to the presses that suit them best.
- Release hidden capacity first; invest for what remains.
