When companies talk about increasing productivity, they focus on empowering their people to get more done. Yet when companies have complex processes and manufacturing at the heart of their business, it’s important to look at the productive capacity of manufacturing equipment as well. Timely, efficient, and high-quality manufacturing is the key to a successful bottom line.
Overall Equipment Effectiveness (OEE) is a metric that helps management determine how well their manufacturing unit is performing relative to its designed capacity during scheduled production runs. In other words, your manufacturing setup was designed to achieve certain a certain threshold; whether it actually does or not is tied to a variety of variables, from your machine maintenance to your team’s ability to handle scheduling. By systematically evaluating performance, it’s possible to isolate variables that are causing delays and make management decisions that support maximum productivity.
OEE and TEEP: A Full View of What’s Happening on the Floor
OEE is often used in conjunction with another approach for measuring productivity: Total Effective Equipment Performance (TEEP). Taken together, these two methods can reveal critical areas of waste and opportunities to upgrade performance across your manufacturing operation by:
- Establishing clear metrics for how the equipment and overall manufacturing operation was designed. What does optimum performance look like from every dimension for your unique system?
- Measuring performance by looking at work center speed vis-à-vis your system’s capabilities.
- Evaluating first pass yield–or the percentage of units manufactured that the company deems “good” versus the total units begun–to establish overall quality metrics.
- Determining how well-utilized a facility is by using load metrics to find the percentage of time a manufacturing floor is scheduled for production.
- Uncovering how well the facility is meeting production expectations by looking at uptime.
- Increasing strategies for identifying problems at all junctures of the manufacturing process and using proactive maintenance and better communication to prevent breakdowns.
- Empowering both managers and workers to take an active role in implementing the different elements of OEE.
Putting OEE into Context
OEE and TEEP provide helpful insights that can put a framework around the dynamics happening on the manufacturing floor. However, everything on the manufacturing floor happens within the context of a much more complex ecosystem. Measures of availability have to take into account the difference between planned downtime and a critical equipment breakdown. Quality must differentiate between poor quality products that come through the production process and items that are rejected at startup due to an issue with components or input. A nuanced understanding of the data can help you really understand how your team is performing and what steps can be taken to maximize profitability and productivity.
Incito Consulting has decades of combined experience applying their expertise to solve challenges on the manufacturing floor. Our team will work with your leaders, managers, and staff to ensure that data is accurate and that your team can turn that information into actionable insights. Contact Incito today to learn more about how lean thinking can transform your operations and help solve your most pressing business challenges.