Avoid any delays and stay aware of the effectiveness of your equipment during the manufacturing process with OEE. Our team will assist you in knowing and understanding the concept of OEE and how OEE can be used to determine how well the production of the plant is going.
What is OEE?The Overall Equipment Effectiveness (OEE) is considered the principal standard to judge and evaluate the productivity of equipment within manufacturing operations in a business organization. Simply put, overall equipment effectiveness in identifying a problem in your equipment / operations, determining which percentage of production time is genuinely productive, and repairing it while providing a consistent measure for determining progress. The aim behind measuring OEE is to improve continuously.
What is OEE Consultancy?OEE Consultancy refers to guidance and assistance provided to an enterprise in identifying the gaps and inefficiencies in manufacturing operations. The consultancy services can also entail reviewing equipment/machinery and process data, finding roadblocks and other inadequacies, and devising and executing OEE improvement plans. The three main factors, which are – Availability, Performance and Quality, are also taken into consideration while providing OEE consultancy.
What is the role of an OEE Improvement Consultant?An OEE Improvement Consultant utilizes the industry’s best method to evaluate OEE Improvement and helps an enterprise get maximum value from its equipment. In addition, OEE consultants are equipped to identify difficulties and challenges that impede planned production and performance concerns that limit production quickness and quality issues that result in low-quality products using OEE calculations.
How does OEE Improvement Consultancy help in business operations?After a thorough inspection and evaluation, an OEE Improvement consultant lays down the roadmap for a company to utilize the equipment assets and assess if the equipment needs replacement. If an OEE audit finds equipment that has to be replaced, OEE management experts can advise on which replacement equipment can meet the necessary criteria. They also assess OEE for potential replacements in order to ensure that the new equipment can provide considerably improved performance.
OEE Terminology to know:
- Fully Productive Time (FPT) – Production time after all losses has been deducted.
- Planned Production Time – It refers to the amount of time one’s system or equipment is expected to produce.
- Ideal Cycle Time – The time required to produce a single item.
- Run Time – The time your system is planned to go into production and is operational.
- Entire Count – The total number of pieces produced, including those with flaws.
- Good Count – The number of parts manufactured that fulfill quality-control criteria.
- Good parts- It refers to those that realize specifications and do not need to be remade.
How is OEE calculated?OEE is generally calculated in two ways which are as follows: Simple Calculation: The ratio of total productive time to planned production time is the most straightforward approach to computing OEE. It appears as follows: OEE = (Good Count x Ideal Cycle Time) / Production Time Planned. Preferred Calculation: This OEE calculation is based on the three OEE factors: availability, performance, and quality (good count). It appears as follows: OEE = Availability x Performance x Quality. It is the recommended way of computation since you not only receive your OEE score, which shows how well you’re doing, but you also get three values (availability, performance, and quality) that explain what caused your losses.
Benefits of OEE for your BusinessImplementing OEE can be highly beneficial for your manufacturing operations. Here are some benefits of OEE: Visual Marker of Effectiveness: OEE makes the production problem into a percentage which makes it glaring to everyone on the team. And they know exactly which area needs improvement and which doesn’t make as much. Maximize Operational Productivity: OEE can help an enterprise determine why there is an operator downtime, expose productivity statistics, and pinpoint delayed changeover or setup times. This type of data assists you in allocating resources correctly and determining where additional personnel are required. Return on Investment (ROI): Since businesses invest extensively in machinery, optimizing the return on this investment is critical. If you can simultaneously employ an OEE approach to create 20% more products on the same equipment, your business will benefit substantially. Cutting Costs on Equipment: An OEE plan helps you assess the actual performance of your equipment so you can determine whether it is performing efficiently. In addition, it cautions you of potential problems that may lead to future breakdowns and repairs. Finally, the overall efficacy of your equipment allows you to forecast probable machine failure, lowering maintenance costs and downtime.
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Why should I practice OEE in my manufacturing business?
OEE (Overall Equipment Effectiveness) is a widely acknowledged metric for quantifying the improvement potential of a manufacturing process in a single figure. Measuring OEE makes it simpler to improve since the primary goal of Lean Manufacturing is to increase productivity and eliminate waste. OEE also serves as an essential link between measurement and improvement.
Can OEE still be applicable if a manufacturing process is primarily manual?
If a manufacturing process is primarily manual, you can follow the same principle of OEE but use OLE (Overall Labour Effectiveness) instead. OEE measures equipment effectiveness, whereas OLE measures laborer productivity. OLE can be measured in parts per person.
Is OEE an equipment maintenance and performance metric, or is it a business metric?
Initially, OEE was a part of TPM (Total Productive Maintenance) and was used as a metric to determine the optimum performance of Industrial equipment. However, in recent years it has also been applied and used as a business metric to judge how well and efficiently a plant or organization uses its production capacity.
OEE can be used to highlight the cost consequences of capacity reductions when combined with a financial model. An accurate cost model can calculate the cost of all OEE losses and assign a monetary value to a percentage improvement in OEE. With this data, the corporation may evaluate product and process costs, determine the most cost-effective methods, and quantify losses and productivity gains.
Most manufacturing businesses are after a target of an OEE percentage of 80 to 85 per cent. The range is considered ideal and is believed to elevate the production capacity. However, an OEE score of 60 per cent is considered relatively moderate and suggests room for improvement.
Improving the OEE figure can lead to cost reduction, waste elimination, improved equipment performance, fewer breakdowns and zero accidents which are exceedingly crucial for any manufacturing business.
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