The Executive OEE Guide
In your FREE Executive OEE Guide you will find:
Everything from OEE Calculations right through to improvement strategy It is easy to get distracted in the busy world of manufacturing. Today’s issues can be resource hungry for the manufacturing team, but firefighting these alone will make tomorrow no different from today. Improvement programmes have many regimes and tools (Lean, CI, Kaizen, Six Sigma, etc), but they all have the same fundamental principle: Firstly, the rate this principle is executed, determines the rate of improvement and bottom-line benefit. Therefore, it is important to focus resources on this principle. Remember, much of today’s firefighting will have common root causes that will not go away until they are solved permanently. This is a useful focal point to coach into the management team. However, before any fixes can be applied, they must first find ‘the problems with the greatest impact’. This is where we connect issues related to assets, labour and materials to a hard cash value on the bottom-line. As a result, losses will be found through a process of gap analysis. The gap being the difference between optimum performance and current performance. In this guide we will focus on OEE Calculations. For completeness Yield and Labour Efficiency must not be forgotten; here the principles of gap analysis are the same.
In a nutshell, there is very little difference between OEE and Efficiency. The only difference is the way in which it is broken down. The final number is mathematically the same. Here is the proof: Efficiency = Good Output / (Planned Time x Maximum Speed) OEE = Availability x Quality x Performance Which looks very different of course. But when you substitute the full calculations for AQP, you get: OEE = Planned Time x Good Output x Maximum Speed Some terms cancel, leaving: OEE = Good Output / (Planned Time x Maximum Speed) Which is precisely the same as Efficiency. Therefore, if the preference is to use OEE rather than Efficiency, it can be used to validate the calculations when building the OEE management system.
Ultimately, there is no point measuring OEE unless the intent is to improve it. OEE serves as a method for the gap analysis, where are the problems with the greatest impact? Take an example of an OEE of 60%. It is of little value alone. Further understanding is needed and OEE aims to achieve this with AQP, for Example: Availability (A) = 70% Availability is therefore the biggest issue on this basis. But this is not enough.
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A Preview of the Guide
The Improvement Focus
Solve the problems with the greatest impact to root cause and apply permanent fixes
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The Difference between OEE and Efficiency
Availability, Quality and Performance
What is the point?
Quality (Q) = 95%
Performance (P) = 90%
