Calvin Williams's blog


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

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.

Why Your Manufacturing Execution System Is Making Your Job Harder

So, you've spent a ton of money and who knows how much time implementing and getting people to use your Manufacturing Execution System (MES). Performance got a little better in the beginning but now it seems that things have gone right back to the old ways just with more data (a lot of which is incomplete and unreliable) and more meetings. The only change that really happened is that people got better at explaining why they're doing so poorly but still no real tangible results.