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Written by Jeffrey T. Luftig, Ph.D.
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Page 9 of 10 Table III shows component and TAU values at performance levels that are relatively common when initiating the use of the TAU model in most companies. An additional feature introduced in this Table is the identification of the Moment of Excellence (M.O.E.). This value represents the highest observed actual value achieved within each component, for the Base Periods analyzed. Note that for the Furnace data (Table III), these values do not all occur within the same Base Time Period.
The M.O.E. Gap, which represents the difference between the average and individual M.O.E. values in each component column, reflect the difference between how the facility generally operates (i.e. on the average), and the facility's potential under current capital conditions. The M.O.E. Gap for Throughput shows the additional output that this facility would produce versus its monthly average output if the Asset Utilization Index could be raised to its M.O.E. performance level. It is important to note that the predicted M.O.E. value for Throughput is obtained through the use of a multiple regression equation as described earlier, as opposed to using a single observed maximum value.
In most cases, it is most helpful to display these data through time on a Run or Control Chart. Illustration I reflects these type of data for a Bakery production line generating a mix of Buns and Pastries.
 As shown by the data on the Run Chart, Efficiency is the primary ‘driver’ for the resultant TAU Index. It is interesting to note, incidentally, that based on the Bakery data displayed on the Run Chart, as well as the summary data for the Furnace/Caster displayed on Table III, in neither case would improvements in Yield provide the primary or maximum impact on the TAU value for the facility evaluated. This is not an unusual finding in the experience of the author, but it does explain why many companies depending solely on Quality or Yield improvements to reduce costs and increase profitability may have ultimately been disappointed.
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BPE 
