The acronym OEE refers to Overall Equipment Effectiveness. It evaluates the operational efficiency of a business. In the manufacturing industry, it describes the ratio of output produced to input (raw materials) used in production. An organization is working at a high degree of efficiency when its OEE is higher; conversely, a lower OEE system suggests that operations are not going well.
For industrial companies, it’s the productivity gold standard. Your success depends on your equipment’s capacity to operate at peak efficiency and produce goods of the highest caliber. With regard to the total amount of time spent in the production process, OEE determines the proportion of productive time.
An organization would have a 100% OEE Calculation score, for instance, if it were producing only high-quality items in the shortest amount of time possible with no downtime. A chance for improvement is indicated by any value that is less than 100%.
When determining OEE, the following three elements are considered:
- Rate of Availability – The portion of a machine’s output that is generated continuously
- Rate of Performance- The standard output-to-output yield ratio
- Rate of Quality – The proportion of quality output to actual production
Availability rate × Performance rate × Quality rate is the formula for calculating OEE (%)
By integrating an OEE dashboard with Power BI, manufacturing organizations can monitor their success, identify and eliminate waste in the process, and detect losses. The level of market competitiveness is constantly rising in the modern day. In this case, a slight increase in the OEE percentage results in enormous profits, and a decrease results in losses.
Despite the fact that the machines were poorly built and had a high failure rate when Seiichi Nakajima first proposed the idea of OEE in the 1980s, within the last forty years, machine building has advanced dramatically, making modern machinery far more reliable and less prone to malfunction.
For manufacturing processes, taking OEE into account is quite helpful because it can be used to identify losses, promote growth, and offer a variety of methods for increasing equipment output. OEE solutions compile information from various sources and utilize tools like Power BI and Tableau to analyze it in order to produce insightful reports that might improve the expansion of your company.
Benefits of OEE analytics to improve your manufacturing processes performance
Consistent production output
If your business is manufacturing, the way you manage production will determine how successful it is. Whether your firm is B2B or B2C, you are expected to deliver a high-quality product in a timely manner in order to meet your client’s standards. Simultaneously, the achievement of your business objectives might be finally facilitated by sustaining consistency in production quality, quantity, and turnaround time.
By putting OEE Software technology into practice, you may meet your production targets by having visibility into the performance of your manufacturing processes. Additionally, you can visualize and analyze your progress in depth with OEE analytics, which lets you control your operations from top to bottom. OEE also helps you allocate resources appropriately to guarantee optimal production volume.
More effective manufacturing techniques
In manufacturing facilities, multiple processes are managed concurrently. As a result, the work floor grows quite busy, making manual process monitoring tiresome. To preserve the seamless operation and high caliber of your output, you must, nevertheless, closely monitor every phase of your production operations.
This is where OEE becomes useful. You can view the real-time status of every one of your processes with an OEE platform. For continuous development, you can keep an eye on the operational state of every piece of machinery and procedure you use. With the perfect software that works with your system, you can quickly identify bugs, and your staff can address the main problems at the same time.
An analytics and performance module is included in the OEE system. Process results are tracked by the performance module, which provides real-time information. However, the analytics module looks at the data and pulls out the insights that can help you increase your net profit.
Visibility of performance
OEE in manufacturing quantifies how effectively a business generates items or services from its assets. To calculate their overall energy efficiency, companies utilize financial documents and production data to ascertain the expenses they incur on labor, utilities, and raw materials. Analyzing those expenses in relation to the money made from product sales is also helpful. Following that, businesses may figure out how much they spend on operations per unit of output.
Competition
Businesses can use OEE to give employees insight into how they are doing in comparison to other companies. By utilizing this data, businesses can discover methods to lower expenses and raise profits, giving them a competitive edge.
Cuts the cost of machinery
Manufacturing businesses frequently need to buy pricey machinery and equipment. On the other hand, a low OEE could indicate that a business is not making effective use of its machinery and equipment. Companies should aim to optimize their in order to reduce costs and boost revenue.
Boosts ROI (return on investment)
The productivity of your equipment is increased when an OEE system is integrated, as it increases equipment efficiency. In addition, using OEE analytics to increase production by 25% over the same period will yield a higher return on investment for your manufacturing unit.
Predictive Insights
In addition to alerting you when your machines need maintenance, the OEE system gathers data to provide insights on equipment downtime patterns. Dependability is increased, expenses are reduced, and unplanned downtime is reduced with OEE system.
OEE-powered smart manufacturing!
OEE system are appropriate for all of your business needs, regardless of the manufacturing industry in which your company operates. Having worked in the enterprise solutions industry for many years, we are aware of your difficulties and can provide tailored solutions to assist you in solving your particular business problems.
OEE simplifies production-related problems and helps to comprehend better business losses, which propels progress. This aids in your ability to make wise business judgements that will boost productivity and save operational costs.
You can interfere with your ERP system’s operational data by putting in place an OEE system. You will also be able to increase the production efficiency of your manufacturing processes to a new level.