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The manufacturing sector has always been known to be highly competitive. To not just survive – but thrive – in the industry, manufacturers need to use all the tools at their disposal. One of the most important of these is Overall Equipment Effectiveness(OEE).
But just what is OEE? And how does it benefit manufacturers?
That’s what we set out to explore as we define OEE and how modern solutions mark a significant step forward for businesses looking to optimize the manufacturing process.
Understanding OEE In Manufacturing
In an industry with notoriously tight margins, maintaining operational efficiency is always a primary goal. The overall efficiency of a given operation is what the OEE metric is designed to cover. It provides a clear and quantifiable measure of how well a manufacturing operation is utilized compared to its full potential.
At its core, OEE is composed of three essential components:
- Availability: This measures the percentage of scheduled time that the equipment is operational. It takes into account events that halt production, such as equipment failures and unplanned maintenance, thereby reflecting the reliability of the machinery.
- Performance: This component assesses the speed at which the equipment operates as compared to its designed speed. Performance losses occur when operating at speeds lower than the maximum possible, often due to factors like suboptimal machine settings, minor stoppages, and slow cycles.
- Quality: Quality measures the proportion of good parts produced versus the total parts produced. It factors in the production of parts that meet quality standards without rework, indicating the effectiveness of the manufacturing process in delivering products that meet the required specifications.
By analyzing these three aspects, OEE provides a comprehensive view of how effectively equipment is being used. It goes deeper than merely keeping machines running, it ensures that they are running optimally and producing quality products – all with a bare minimum of downtime.
Benefits of OEE for Manufacturers
For any metric to be worth measuring, it must provide insights and benefits that help and not hinder the manufacturing process. In this sense, the adoption of OEE ticks all the boxes.
Among the benefits that OEE brings to manufacturing are:
- Enhanced productivity: By pinpointing areas where production lags, OEE helps in optimizing machine use. This leads to increased throughput without the need for additional resources.
- Cost reduction: OEE identifies inefficiencies and waste, such as excessive downtime or poor quality outputs. Addressing these issues directly leads to lower production costs and reduced waste.
- Improved quality: A focus on the Quality component of OEE ensures that more products meet specifications on the first pass, reducing the need for rework and ensuring higher customer satisfaction.
- Data-driven decisions: OEE provides actionable insights based on real data, enabling manufacturers to make informed decisions about equipment maintenance, upgrades, and process improvements.
- Predictive maintenance: Regular OEE analysis can predict potential equipment failures, allowing for proactive maintenance and reducing unplanned downtime.
Ultimately, OEE aims to serve as a powerful tool for improving efficiency, reducing costs, and improving product quality. All these goals represent something of a Holy Grail for the manufacturing sector.
Calculating OEE In Manufacturing
The three components of OEE that we mentioned earlier (Availability, Performance, and Quality) are all central to the calculation. The complexities of how these are used in the OEE calculation are summarized below:
- Availability: This is calculated by dividing the actual operating time by the planned production time. It reflects the percentage of time that equipment is available for production, accounting for downtimes due to breakdowns or maintenance.
- Performance: This measures the speed of production. It’s calculated by comparing the actual output with what could have been produced at optimal speed during the same period. This component highlights losses due to factors like slow cycles and minor stoppages.
- Quality: This component focuses on the output quality, calculated by dividing the number of good units produced by the total units started. It reflects the effectiveness of the production in delivering products that meet quality standards.
The overall OEE percentage is then calculated by multiplying these three components (expressed as percentages):
OEE = (Availability x Performance x Quality)
This is far from a comprehensive description of the OEE calculation, but it does cover the basics and describes how it provides insights into production efficiency.
OEE, Security, and the Cloud
Advanced OEE systems and cloud computing are a perfect marriage. Integrating cloud technology in OEE systems brings significant benefits, both in terms of efficiency and data security:
- Enhanced data security: Cloud-based OEE solutions offer robust security measures, protecting sensitive operational data from unauthorized access and cyber threats.
- Real-time data access: Cloud platforms enable real-time data access and analysis.
- Scalability and flexibility: Cloud solutions provide scalability, accommodating the growing data needs of a manufacturing operation
- Cost-effective: By using cloud services, manufacturers can reduce costs associated with on-premise data storage and management.
- Remote monitoring and control: The cloud enables remote monitoring and control of manufacturing processes.
Physical security systems can also be integrated into cloud-based systems adding another layer of security to the manufacturing process. Cloud-based systems are increasingly being used throughout the manufacturing process to cut costs and boost efficiency, OEE is one of the processes that can benefit from this switch.
Made to Measure: OEE and Manufacturing
Manufacturing is a tough industry to conquer but with a comprehensive OEE strategy and the right monitoring tools, the efficiencies that OEE offers are invaluable for ambitious manufacturers.
From enhancing productivity and reducing costs to improving product quality and even making the workplace safer, OEE serves as a multifaceted tool tailored to modern manufacturing needs. Its integration with cloud technology further amplifies its effectiveness, offering real-time insights and scalable solutions.
Staying ahead of the game in manufacturing is essential, OEE might just be the right tool to achieve it.
