During these times of reduced demand and cutbacks, you are likely to be under constant pressure to improve performance and quality and increase equipment availability while reducing operating expenses, regardless of your company’s size or type of manufacturing. However, by understanding the gap between your plant’s actual potential and your current performance, you will not only discover the hidden potentials of your factory but also develop ways of running it more efficiently and effectively with minimum waste. OEE (overall equipment effectiveness) is the solution to this.
OEE has been used widely in the industry. It identifies the most common sources of manufacturing productivity losses and segregates them into consistent metrics. These metrics are then used to monitor and improve manufacturing operations. There are some more advantages associated with monitoring the production losses and increasing the productivity. It helps you to have a plant with more production capacity when the demand gets back. At the same time it makes your plan operate in a more predictable way.
OEE can be used at the equipment, department, line and facility levels. It is a methodology that effectively breaks down complex production problems into simple and insightful information. This way it helps you to systematically improve your operation and find out inefficiencies in your production processes by showing you how good a production line is functioning.
The overall functions in terms of availability, performance and quality are monitored by the OEE system and the data availed can be utilized to guide you with your diagnostic and improvement efforts. Any efforts of changes you make in the light of the data obtained can subsequently lead to improved efficiency and reduced operating costs for your factory.
Problems faced by the manufacturing sector
Most companies do realize that there are various areas of improvement in the performance of their assets. But, a few only realize how big the gap is between their current performance and their plant’s capability. The industry face problems related to low efficiency in the production floor, unplanned downtimes, decreased performance standards, high cost due to malfunctioning of equipment etc.
During these challenging times, it is highly important to leverage additional efficiencies and substantial cost savings to work in favour of your plant’s productivity. OEE measurements are valuable tools that aid you in improving the overall efficiency of your factory. Use these metrics to test your own operations.
Do you know your OEE score?
According to the research conducted in over 15,000 companies, the average OEE score obtained by the companies range from 55 to 65. While most poor performing companies only managed to score between 48 to 55, companies with excellent performance scored an OEE of more than 85. This suggests that your ideal OEE score should be anything above 80 to stay on the competition. Did you ever wonder what your OEE score is?
Before getting there, let’s get some insight into how OEE evolved as a performance measuring tool. OEE was first described –as a central component of the TPM methodology- in Seiichi Nakajima’s book ‘TPM tenkai’ (1982, JIPM Tokyo).
Around 1980s, in Europe, Fuji Photo-Film made the largest investment ever done outside of Japan so far by building 3 factories in Holland. The challenge for the factory management: “Producing Zero Defect and Zero Loss, using Japanese principles in a Western environment”. This was the first time TPM and Lean where extensively applied outside Japan. Fuji’s Director Steven Blom resumes: “Measure OEE and eliminate the losses, using Small Group Activities”. The task was to measure OEE in a ‘hands on’ practical and standardized way, in order to use it to activate Continues Improvement by the shopfloor.
This effectively made OEE accessible and feasible for many Western companies’ production departments. Gradually, OEE has been used worldwide in virtually every kind of production-process thinkable.
OEE (Overall Equipment Effectiveness) is a “best practices” metric that identifies the percentage of planned production time that is truly productive. An OEE score of 100% represents perfect production.
OEE is calculated based on the formula, OEE = Availability x Performance x Quality.
Many manufacturing lines are only 50% productive, meaning there are tremendous opportunities for improvement.
OEE Software
An automated OEE reporting system increases the efficiency of your manufacturing enterprise. Your success as a manufacturer largely depends on how efficiently you optimize throughput to produce quality parts and at the same time maximizing equipment efficiency. The dynamic OEE tracking, analyzing and reporting tools from ‘I smith’ can play a crucial role in your success by supporting various activities happening in the production floor such as:
• Increasing productivity and efficiency on the production floor
• Abolishing unplanned downtime
• Respond quickly to changes in performance effectiveness
• Decreasing costs (both direct and indirect) related to poorly functioning equipment, low quality, and surplus waste
Important Features of OEE
• Wide Visibility of OEE factors – The visibility across the enterprise makes you in control of the manufacturing process.
• Exception Alerts – Instant alerts sent in the form of email, pop up notifications, text alert or voice announcements.
• Collecting data made automatic – OEE observations are automatically monitored, calculated and stored for a detailed analysis in the future. This eliminates the manual intervention required otherwise.
• Performance Charts and Graphs – Charts and graphs generated by the OEE system are dynamically updated with real time performance and quality analysis data.
• Flexible Performance Report Delivery to the Desktop or Mobile Device – The performance reports are displayed instantly on the screen of your device (laptops, desktops or mobiles), directly to a printer, saved to a file or sent via email.
• Manufacturing Intelligence Dashboards – Existing Key performance indices can be used or this systems allows you to create customized KPIs easily.
• Comparison and Trend Analysis Tools – Using this feature you can compare current OEE percentages with previous ones in terms of job, work center, shift or day.
• Track efficiency at the grass root level – Helps you track efficiency and downtime at an enterprise level, specific manufacturing cell or work center, with the ability to trace down to an item number and revision of the manufactured part.
• SPC Reporting – Automatic updates to Statistical Process Control (SPC) module helps in real-time tracking of process quality and product to promote continuous improvement.
• Reducing paper works – With ‘I Smith’ OEE system in place, you can eliminate the factory floor paper works as all settings and reports are accessible via web. This in turn reduces manual data collection time, efforts and errors.
• Discover hidden production capacity – Enables you to uncover the hidden capabilities of your factory.
I Smith OEE System
I Smith’s OEE system is developed to collect and organize production data from the factory floor. It discards the three major problems with manually collected data: that is untimeliness, inaccuracy, and bias. Analyzing the raw data is the basis for all subsequent production reports. All important decisions and strategies are planned and implemented based on these reports. Any errors in the initial data collection can impart a humongous effect that adversely affects your business. Accurate monitoring and measurements are the basis for making improvements.
OEE give detailed reports of various factors like uptime, downtime, its causes and production rates. This system provides an insight into what your machines are doing, whether they were down, if so, how long? Whether they are producing good parts or bad? Etc. This can be applied to most machine types too.
OEE system includes a real time OEE monitoring software and production monitoring controls that collects production data automatically from your power presses, production machines, and work cells. This software organizes the production data into a simple database and the report generator helps you to calculate overall equipment effectiveness (OEE).
Traditional OEE is a part of many applications. Though the Availability and Quality metrics can be applied to different types of machines globally, problems arise when the traditional performance metric is applied to discrete manufacturing processes. Here, the ‘ideal production rate’ is dependent on the parts getting manufactured than the machine as a whole. However, instead of using a single ideal performance rating for each machine, I Smith uses a specific ideal rate related to each job segment/machine combination that is determined by the user.
What makes the ‘I Smith’ OEE analysis and reporting tools better than other OEE solutions is the basic fact that our real-time shop floor data flows automatically from the Enterprise IQ MES modules into a simple, intuitive presentation of Overall Equipment Effectiveness (OEE) factors. Managers and supervisors can avail this data to take necessary actions and respond quickly to any fluctuations in machine availability, quality and performance.
To know and radically improve your OEE score, Contact I Smith for a detailed consultation.

Leave a Reply