One of the reasons why OEE also known as Overall Equipment Effectiveness is popular & well known in manufacturing operation metric is because it can give out apt and actionable data to the manufacturers for major productive improvement. In order to measure the efficaciousness of a manufacturing process, one of the best practices metric that is used is the OEE. OEE calculation is done in the product of 3 factors i.e. availability, performance and quality. OEE helps the manufacturers to know planned production time, which is fully productive. If you get a score of 100% then, it shows that your production is perfect. You can also use the OEE overall equipment effectiveness to track the progress and performance in removing losses or waste from a piece of equipment.
Benefits of OEE for Companies & Manufacturer
Improving Manufacturing Process –
Apart from that, one of the major benefits of OEE is that it shows the manufacturer as to where to enhance manufacturing process. One of the things that you will know about the OEE is that, it offers or indicates a picture about how good your manufacturing process is doing, which is almost correct. However, it is important for people to realize the true value of OEE and its uses, which you realize when you use the OEE metrics to improve the manufacturing process. Before you can take steps to improve or enhance the production process, it is pivotal for you to know about its efficiency and inefficiency. With the help of the OEE metric, you can count efficiency in simple numbers, at the same time unveiling the real efficaciousness of the production process. The limitations on the performance of the machinery can be like a block for its capacity. OEE metrics helps to recognize the blocks in the process of manufacturing and encourage the manufacturer with continuous improvements in projects.
Managing Major Losses –
One of the things that you will note is that, OEE helps in managing more than 5 different kinds of major losses. The pivotal objective of OEE is to identify and reduce the loss of total production management, which is a very known cause of productivity loss that is equipment based in the manufacturing.
Those more than 5 different areas of losses are – breakdowns and failures in availability, setup and adjustments in availability, small stops in performance, reduced speed in performance, start-up rejects in quality, and production rejects in quality. In simple words, OEE is one such tool that can assist you to reduce the costs of defects, rejects, and downtime.
Attain your Return on Investment (ROI) on Equipment –
Another thing to note is that for manufacturers every piece of machine in the production line is like an investment and of course a huge investment. In addition, in order to get maximum return on the investments that you have made and that too in short span of time, it is important for you to ensure that the equipment or machine is being used to its fullest with efficiency. Moreover, this is what the OEE use is it measures the efficiency against the number of days and the number of hours, so that it can report the usages of the assets. Through OEE, the manufacturers can broaden their horizons on how to make changes to get the best possible results or performance from the existing/new machines and whether there is any need of additional equipment.
Envision Performance Work Easily –
You can envision or visualize the performance work easily through OEE and it lets you know about the real reasons behind production issues. So, you can visualize these issues and also get to know about the most pivotal sources of productivity losses through one single %. In addition, another benefit of OEE is that, from the low level to high level management can quickly see how OEE is working and where there is a need for improvement.
Delivers Online Target –
OEE can also be said as a kind of tool for management. It can provide the users with online targets that is achievable. OEE has metrics through which the users of the OEE tool to the process to work on their production targets. In simple words, the users of the OEE tool can work proactively.
Increase Productivity in Workforce –
With the help of OEE, the workers can get their hands on productivity data and using this workers/employees can better work or assign resources and find out where there can be extra capacity. It also identifies the downtime reasons for workers and OEE highlights the long changeovers or time for set up. Lastly, OEE helps the workers to remain competitive.