Because of the current economy and global competition, business managers and executives are sensitive about any details involving manufacturing costs. In this type of atmosphere, you need to consider what types of methods will optimise returns and cut down on expenses. Fortunately, overall equipment effectiveness or OEE can meet this business objective.
Therefore, an OEE solution enables a manufacturer to realise a number of production advantages. These key benefits are characterised by the following:
- Reduced downtime and maintenance expense as well as better management of the equipment lifecycle.
- Increased productivity through the identification of bottlenecks.
- An increased rate of quality and lower amount of scrap.
- Increased productivity from enhanced operational visibility.
Reducing Unscheduled Downtime
By using OEE, manufacturers have the opportunity to enhance operational performance by reducing the amount of unscheduled downtime. When OEE systems are employed, then operators can better monitor the status of machine operations as well as perform root-cause analyses.
How OEE Is Calculated
Basically, OEE is a type of performance metric that is computed from data that covers machine availability, rate of quality, and performance efficiency. For instance, availability is equated to operating time minus downtime or total operational time. Quality equals good output or the total manufacturing output, and performance is equal to total potential output. OEE is figured by multiplying these factors.
Capturing the Reason for Downtime
As a result, OEE programmes can capture the reasons for downtime that may be due to machine conditions, production personnel, material status, or issues with quality. The application can be used at an individual machine level, at a line or cell level, or for an entire manufacturing plant.
At the plant level, OEE-type metrics are corroborated with other metrics to supply key performance indicators (KPIs). With the use of enterprise-level technologies, managers can track OEE plant metrics and scale down to determine the root causes of issues. An OEE computer system obtains minute-by-minute updates to realise real-time improvements in processing.
When OEE Was First Used
The first application of OEE was instituted in the 1960s. At that time, OEE was employed as a key metric in total productive maintenance (TPM). TPM is a plant improvement process that offers rapid and constant enhancements in the manufacturing process by using employee empowerment, employee engagement, and a closed-loop measurement of results. From the time of its introduction, OEE methodology has been embraced by other industries to elevate asset utilisation.
With respect to labour efficiencies, an OEE system helps because it captures productivity data and the reasons for downtime. By using these details, management can better decide what resources to allocate. As business improves, OEE can be used to identify extra capacities within the current workforce which in turn saves on the costs of labour.
A Scalable Resource
Because OEE is scalable, it can yield an excellent ROI. Using a system programme that features OEE supplies powerful data handling, accurate real-time reporting, and what-if and root cause analysis tools. In addition, this type of programme features improvement agendas and suggestion schemes plus energy and quality tracking. You do not need to refer to any more complex spreadsheets. Simply feed the required data into an OEE system for graphical assessments and real-time analyses.