DO YOU WANT TO REDUCE DOWNTIME?
DO YOU WANT TO INCREASE PRODUCTIVITY?
DO YOU WANT TO REDUCE OVERTIME COSTS?
There are generally two ways to improve productivity. One is the purchase of better machinery. The second involves a new process, which allows a worker to increase the speed or quality of what they are doing.
Many companies routinely hit capacity constraints and immediately consider adding overtime for existing workers, hiring workers for a new shift, or buying a new line. Relatively few companies have made the more modest investment that is required to optimise the performance of their existing lines.
OEE as an effective KPI
Overall Equipment Effectiveness is an effective KPI (Key Performance Indicator) to help improve the productivity of manufacturing processes and accurately measure true plant productivity. Its key measurable components are Availability, Performance and Quality. Availability is a measure of downtime losses, Performance is a measure of speed losses and Quality is a measure of defect losses.
The real-time data captured from an Automated OEE system such as production downtime, shortstops and speed losses can provide real visibility into the effectiveness of plant machinery and processes needed to make measurable productivity improvements.
High levels of downtime and WIP (Work In Progress), low capacity utilisation and high labour costs can all have an impact on business profitability and performance. OEE is a decision support tool to improve overall manufacturing operations.