What Is OEE Manufacturing? Tips for Running a Productive Factory
Table of Contents
- Understanding Overall Equipment Effectiveness (OEE) in OEE Manufacturing
- Example of OEE Equation in Action for OEE Manufacturing
- Tips for Running a Productive Factory
- Regular Maintenance Schedules
- Use Technology and Analytics to Reduce Downtime
- Train Employees to Identify and Address Inefficiencies
- Optimize Changeovers to Boost Performance
- Monitor and Improve Product Quality
- Account for All Production Stops
- Eliminate the Six Big Losses
- Improve Equipment Reliability
- Monitor Production Trends
- Avoid Equipment Failure
- Increase OEE
- How OEE Supports Business Planning for Manufacturers
- Conclusion
- FAQs
Success in manufacturing can depend on the finest of margins. One of the ways that successful manufacturers stay on the right side of this margin is to make sure that production processes run as efficiently as possible.
The key way to measure this efficiency is a best practices metric known as Overall Equipment Effectiveness (OEE). Throughout the manufacturing sector, OEE is considered the gold standard in ensuring that production processes are optimized.
In this article, we break down OEE into its key components and describe five ways that it can help manufacturers remain productive and competitive. If you’re a manufacturer looking to achieve your business plan goals, then this makes essential reading.
Understanding Overall Equipment Effectiveness (OEE) in OEE Manufacturing
In simple terms, OEE in manufacturing uses three metrics to establish just how efficient manufacturing processes are running. By assessing availability, performance, and quality, the effectiveness of productivity can be measured as a percentage.
To understand this more fully let’s take a more detailed look at these components and how they’re used to determine manufacturing efficiency:
- Availability: As the name suggests, this measures the actual running time of machinery against its potential running time.
- Performance; This measures the output of machinery against its maximum potential output.
- Quality: This metric measures the percentage of products that meet the preset quality standards.
In a perfect world, all these metrics would measure 100%, but that is never achievable. However, they do identify bottlenecks and other efficiency issues and actionable ways to resolve them.
Example of OEE Equation in Action for OEE Manufacturing
A manufacturer runs a machine for 8 hours in a 10-hour shift (80% availability). During those 8 hours, the machine operates at 90% of its maximum speed (90% performance). Of the items produced, 95% meet quality standards (95% quality).
The OEE is calculated as:
- OEE = Availability x Performance x Quality
- OEE = 0.80 x 0.90 x 0.95
- OEE = 0.684 or 68.4%
Taken individually, none of these figures would seem to be too drastic. However, taken as a whole, they paint a different picture. Despite 80% being the lowest percentage overall production is running at just over two-thirds of its potential. It also shows that the greatest improvement can be achieved by focusing on the availability metric.
Tips for Running a Productive Factory
With a focus on the OEE equation and how it can be used to optimize production, let’s explore five tips to improve production efficiency.
Regular Maintenance Schedules
In the above scenario, the main problem was machine availability. This is a very common problem and is often one of the main factors behind a poor OEE result. To address this, implementing regular maintenance schedules is crucial. Preventive maintenance minimizes unexpected breakdowns by ensuring machines are inspected and serviced before issues arise.
Predictive tools can take this further. Advanced sensors, AI, and sophisticated software can help to keep machines oiled up and running efficiently.
Use Technology and Analytics to Reduce Downtime
The technological tools available to manufacturers are shifting the goalposts in OEE measurements. Advanced analytic tools and powerful software can monitor machine performance in real-time and provide alerts when potential issues arise.
For example, such technology can play a major role in reducing downtime by detecting irregularities in equipment operation. This can allow maintenance teams to act before breakdowns occur. Put simply, effective OEE manufacturing requires a thorough understanding of the complexities of the manufacturing process. Advanced software and sensors help to achieve this.
Train Employees to Identify and Address Inefficiencies
While the use of advanced software and associated technology is undoubtedly a boon, the role of personnel in improving OEE should never be overlooked. Human expertise has a vital role to play in recognizing and resolving inefficiencies. By providing training, manufacturers can ensure that employees understand how to monitor machine performance, identify bottlenecks, and the importance of responding quickly.
For example, operators can learn to detect early warning signs of equipment malfunctions or optimize changeover procedures to minimize downtime. While the automation of production is increasing, the human factor is still a large part of the process. Training also plays a critical role in promoting a safety culture in manufacturing and a safe workplace is a more productive workplace.
Optimize Changeovers to Boost Performance
When it comes to machine availability, one of the main factors that can drag OEE scores down is lengthy changeovers. Streamlining these processes – often referred to as Single-Minute Exchange of Die (SMED) – is one of the most effective ways to reduce the time required to switch between tasks or products.
Again, the human factor can play a prominent role here. Start by analyzing current processes to identify inefficiencies, such as unnecessary movements or poorly organized tools. Standardizing procedures and preparing materials in advance can also save valuable minutes. Even small reductions in changeover time can add up, ensuring machines spend more time running at optimal capacity.
Monitor and Improve Product Quality
Poor quality output is one of the surest ways to put the brakes on a solid OEE performance. Put simply, low-quality output wastes material, time, and increases overheads.
Technology can be an essential ally here. Automated quality control systems and computer vision can play a critical role in improving output quality. However, it is also another area where proper training and the human factor can help. This combination is essential for achieving consistent results in OEE manufacturing.
Account for All Production Stops
Tracking every instance of downtime, no matter how short, allows manufacturers to gain a comprehensive understanding of where inefficiencies exist. Using automated data collection systems to capture these events ensures that nothing is missed and helps to optimize performance.
Eliminate the Six Big Losses
The Six Big Losses are key areas that contribute to inefficiency in manufacturing. These include breakdowns, setup and adjustment times, idling and minor stoppages, reduced speed, defects, and rework. Focusing on eliminating these losses leads to improved machine uptime, faster production cycles, and better quality output.
Improve Equipment Reliability
Reliability is key to reducing downtime and improving overall performance. By implementing a robust reliability program—such as predictive maintenance and continuous monitoring—equipment performance can be optimized, and unexpected failures minimized.
Example: Regularly scheduled diagnostic checks and real-time monitoring systems help improve equipment longevity and operational efficiency.
Monitor Production Trends
Analyzing historical production data and trends provides insight into areas of improvement and helps manufacturers anticipate problems before they arise. Leveraging data analytics software can identify hidden patterns in performance and highlight areas where intervention is needed to boost productivity.
Avoid Equipment Failure
Preventing equipment failure requires a proactive approach that integrates frequent inspections, predictive analytics, and employee training. By addressing issues before they turn into failures, manufacturers can maintain high levels of productivity and ensure operations run smoothly.
Increase OEE
Focusing on increasing OEE leads to greater production efficiency and reduced operational costs. Regularly reviewing and analyzing the components of OEE—availability, performance, and quality—can help identify key areas for improvement and streamline manufacturing processes.
How OEE Supports Business Planning for Manufacturers
- Pinpointing Investment Opportunities: OEE data helps manufacturers identify which equipment or processes need upgrades or replacements. This clarity is crucial when crafting a business plan to secure funding or attract stakeholders.
- Setting Realistic Operational Goals: With OEE metrics, manufacturers can establish achievable production and revenue targets based on data, ensuring the business plan reflects practical and informed projections.
- Showcasing Operational Efficiency: High OEE scores highlight a lean and effective operation, which is a strong point for investors or clients evaluating the business’s potential.
- Managing Costs Effectively: By identifying inefficiencies such as downtime and product defects, OEE helps streamline operations and reduce costs, which is crucial for demonstrating financial prudence.
- Driving Sustainable Growth: Insights from OEE metrics support the creation of scalable and sustainable growth strategies, ensuring long-term operational and financial success.
Conclusion
Achieving success in the manufacturing sector can be challenging. Although the proper implementation of OEE will never be a guarantee of success, it can be the factor that differentiates between success and failure.
By focusing on the efficiency of production processes, OEE allows manufacturers to identify inefficiencies, reduce waste, and maximize machine usage.
FAQs
What is OEE in manufacturing?
OEE (Overall Equipment Effectiveness) is a metric that measures manufacturing efficiency by assessing Availability (machine uptime), Performance (output vs. potential), and Quality (products meeting standards). It helps identify areas for improvement to optimize production and reduce downtime.
What is a good OEE score to aim for?
A score of 85% is what many manufacturers consider as being “world-class.” Scores below this will often highlight areas where improvements can be made. As noted, these improvements will be in availability, performance, or quality. A well-implemented OEE process will identify what metrics need their performance tightened.
How can small manufacturers implement OEE without expensive tools?
At the end of the day, OEE is merely an equation. The metrics can be tracked with spreadsheets or simple software. However, sophisticated software suites don’t cost the earth and can greatly improve the accuracy of the calculation. These can be gradually implemented to spread the cost of the process over time.
What industries can benefit from OEE?
All manufacturers can benefit from OEE. However, industries with complex machinery or high-volume production, such as automotive, food and beverage, and electronics manufacturing will find it particularly beneficial.
How often should OEE be monitored?
OEE is something that benefits from real-time continual monitoring. While this is the ideal scenario, it isn’t always feasible – at least initially. However, even daily or weekly evaluations can help identify areas needing improvement.
