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In your FREE OEE Guide you will find:
• Efficiency Improvement Strategy
• Avoid Calculation Pitfalls
• Avoid being misled by data and include the team
• Step by step implementation plan
• How to apply LEAN to the improvement cycle
• Data waste: don’t drown in spreadsheets
and much more…
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Definitive Guide – Everything from getting the calculations right to improvement strategy.
The Improvement Focus
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:
Solve the problems with the greatest impact to root cause and apply permanent fixes
The rate this principle is executed, determines the rate of improvement and bottom-line benefit.
It is important therefore 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.
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.
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 and Efficiency. For completeness Yield and Labour Efficiency must not be forgotten; here the principles of gap analysis are the same.
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The Difference between OEE and Efficiency
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. If the preference is to use OEE rather than Efficiency, it can be used to validate the calculations when building the OEE management system.
Availability, Quality and Performance
What is the point?
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%
Quality (Q) = 95%
Performance (P) = 90%
Availability is therefore the biggest issue on this basis. But this is not enough.
What is causing Availability losses of 30%?