Overall Equipment Effectiveness: Controlling and improving reliability, productivity and yield quality

The current competitive environment is characterized by a progressive pressure on margins due to increasing material/resource costs and customer expectations for lower prices, higher quality and faster deliveries.  Overall Equipment Effectiveness (OEE) can help to counter this pressure by providing an insight into the causes of equipment problems, low productivity and quality yield.

Overall Equipment Effectiveness is a measure of how well you do what you plan to do.  In a single KPI it tracks levels of equipment reliability, capacity loss and quality defects so that they can be systematically improved. Combined with our Lean Action toolbox, OEE is an essential driver of the pace of improvement.  

The gains include increased capacity which reduces unit costs, improved flexibility to reduce finished goods inventories and improved material yield to direct improve bottom line profitability.  Because increased OEE means less management firefighting It also frees up management and specialist time to focus on developing the business.  Priceless!

Before investing in hew expensive capital equipment carry out an OEE survey to identify the full potential of your current assets.  A realistic goal for a structured Lean Action programme is to increase OEE by up to of up to half over a 3 to 5 year period.  10 to 15% increases in OEE in the first 12  months are common which means 10 to 15 % more output or the same output in less time.  What is would that be worth to your business performance
OEE Application steps include:
    Definition / validation standards (times and methods)
    Implementation of the OEE recording and analysis to identify improvement potential, priorities
    Design of OEE improvement process
    Mobilisation of the improvement programme
    Systematic reduction of hidden losses as part of the routine management process

Implementing OEE
Implement the programme in a pilot area (department, production line or office) and then gradually extended to other areas. This allows the company to set a sustainable path and to perform fine tuning of the method on the specific features of OEE.


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