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Many organizations run into a lot of the same obstacles when they first start considering an OEE implementation plan. Knowing and understanding how to navigate through these hurdles will facilitate the process.
Understanding OEE
OEE is a tool to monitor the effectiveness of manufacturing facilities. Software commonly is used to implement OEE, but it can also be done manually using plain old pencil, paper, spreadsheets and elbow grease.
At the surface, OEE is just a couple of simple formulas used to monitor three isolated factors of availability, performance and quality. Below is a brief description of each component:
As simple as these calculations appear to be on the surface, getting to those numbers and using them within your company to your advantage is the true challenge. There are technical details, capital expense, human factors and more. So where do you start? How do you begin setting up an OEE solution in your company?
Is OEE Right For Your Organization?
First off, you must determine if OEE is truly right for your company. Every company is different, so deciding if OEE is right for your organization will require you to answer a few questions:
One last deciding factor is whether your company may inherently be very efficient or possibly so profitable, that it really does not matter if you track OEE. If this is the case, then you should be thanking the manufacturing gods. If this is not the case, and your company could really benefit by focusing on increased efficiency, read on.
Does It Have To Be a Perfect Fit?
Sometimes it first appears that your process can’t benefit from OEE. For example, your process does not have straight forward production units. Such as, your production units are not discrete units such as cases, bottles, gallons, liters, widgets and so on. Also, if your process is not conducive to a regular production rate, then OEE Performance may not work.
But even in these situations, keep in mind that you can still benefit from implementing only one or two of the OEE factors. For example, for an irregular production rate, OEE Availability and Quality can still be used very effectively. Don’t throw out the baby with the bath water.
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How to Get Started Implementing an OEE Solution
06/08/2011 - You have probably heard the term OEE, the acronym for “overall equipment effectiveness,” and you may already have a sense about what it is all about, but implementing a successful OEE solution is not done in a heartbeat. So, you may be asking, “where do I start?”Many organizations run into a lot of the same obstacles when they first start considering an OEE implementation plan. Knowing and understanding how to navigate through these hurdles will facilitate the process.
Understanding OEE
OEE is a tool to monitor the effectiveness of manufacturing facilities. Software commonly is used to implement OEE, but it can also be done manually using plain old pencil, paper, spreadsheets and elbow grease.
At the surface, OEE is just a couple of simple formulas used to monitor three isolated factors of availability, performance and quality. Below is a brief description of each component:
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Availability OEE Availability is the ratio between the actual run time and the scheduled run time. The scheduled run time does not include breaks, lunches and other pre-arranged time a production line or process may be down. Performance OEE Performance is the ratio between the actual number of units produced and the number of units that theoretically can be produced (standard rate). The standard rate is the performance rate for which the equipment is designed. Quality OEE Quality is the ratio between good units produced and the total units that were started. |
Is OEE Right For Your Organization?
First off, you must determine if OEE is truly right for your company. Every company is different, so deciding if OEE is right for your organization will require you to answer a few questions:
- Does your company have competitors?
- Are the competitors implementing OEE?
- Are your competitors more profitable?
- Is profit important to your company?
- What can be done with the dollars saved by reducing operating cost?
One last deciding factor is whether your company may inherently be very efficient or possibly so profitable, that it really does not matter if you track OEE. If this is the case, then you should be thanking the manufacturing gods. If this is not the case, and your company could really benefit by focusing on increased efficiency, read on.
Does It Have To Be a Perfect Fit?
Sometimes it first appears that your process can’t benefit from OEE. For example, your process does not have straight forward production units. Such as, your production units are not discrete units such as cases, bottles, gallons, liters, widgets and so on. Also, if your process is not conducive to a regular production rate, then OEE Performance may not work.
But even in these situations, keep in mind that you can still benefit from implementing only one or two of the OEE factors. For example, for an irregular production rate, OEE Availability and Quality can still be used very effectively. Don’t throw out the baby with the bath water.
<< < 1 2 > >>