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Manuficient Consulting Blog

CAN OEE BE USED TO REDUCE OPERATING COST?

OEE or Overall Equipment Effectiveness measures manufacturing performance against perfection. It is regarded as the global benchmark for measuring manufacturing efficiency. Any deviation from perfection drives up operating cost. OEE looks at three different losses and multiplies them across to assess total losses. Those losses are:

Availability - This is a measure of downtime (both planned and unplanned)

Throughput - This measures rate loss against the theoretical maximum run rate

Yield - This measures the amount of efficiency lost due to quality issues

The 5 Biggest Continuous Improvement Challenges and How the Factory Operating System Solves Them All

1. Resistance from the Shop Floor and middle managers
As any Lean or Continuous Improvement (CI) practitioner can attest to, the first problem you encounter while trying to drive changes is resistance from the shop floor – and then the management team. The resistance is often created by a fear of change and people being pushed out of their comfort zones. It also arises from conflicting agendas.

Are Your Metrics Causing You To Lose Money?

As Peter Drucker, one of the founders of the study of modern management, once said, "if you can't measure it, you can't manage it." Rather you agree with this statement or not, the practice of measurement, or expressing things, events, and ideas numerically, is only increasing in the way we run our businesses. Metrics are critical to Continuous Performance Improvement since they provide the frame of what exactly we're working to improve.

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