Streamline your product design: When manufacturers can remove features that aren’t used and simulate real-world conditions, they can design products to be more reliable – and at a lower cost. Improve your asset efficiency: By reducing excess inventory, manufacturers can experience quicker changeovers, less unplanned downtime, and better capacity utilization – meaning they’re getting the most from their factories and equipment. Ensuring your processes optimize energy, costs, and labor can help you to:Įmpower your technicians: Increasing manufacturing efficiency goes hand-in-hand with a better first-time fix rate, fewer truck rolls, and eliminated blind dispatches by streamlining call planning, improving access to remote data, and heightening support in the field. What is the goal of manufacturing efficiency?Ī highly efficient manufacturing team can help organizations work purposefully and correctly – not just productively. By focusing on speed and scalability, manufacturers can deliver more while keeping costs (as well as materials, time, and energy consumption) low. Put another way, it serves as your release valve to deal with unforeseen market pressures. When organizations streamline their operations using innovative technology, they can stay ahead of global market challenges and supply chain forces. Manufacturing efficiency – the ability to produce goods at the minimal overall cost – does more than just increase productivity. Plant floor employees will perform best when they are given goals that are real-time, easily interpreted and highly motivational.Emily Himes Read Time : 7 min What is manufacturing efficiency? OEE is a great tool for managers, but for plant floor employees it can be a bit abstract. For free worked examples, templates, spreadsheets, and other resources visit. Working through real-world examples is a great way to master the OEE calculation. With no stop time means an Availability score of 100%.As fast as possible means a Performance score of 100%.Manufacturing only good parts means a Quality score of 100%.Let’s tie this notion of perfect production to the OEE calculation: Perfect ProductionĮarlier, an OEE score of 100% was described as perfect production: manufacturing only good parts, as fast as possible, with no stop time. With a bit of reflection, it can be seen that multiplying Good Count by Ideal Cycle Time results in Fully Productive Time (manufacturing only good parts, as fast as possible, with no stop time). This is the “simplest” OEE calculation described earlier. OEE = (Good Count × Ideal Cycle Time) / Planned Production Time It is a low score and in most cases can be easily improved through straightforward measures (e.g., by tracking stop time reasons and addressing the largest sources of downtime – one at a time). 40% OEE is not at all uncommon for manufacturing companies that are just starting to track and improve their manufacturing performance.60% OEE is fairly typical for discrete manufacturers, but indicates there is substantial room for improvement.For many companies, it is a suitable long-term goal. 85% OEE is considered world class for discrete manufacturers.100% OEE is perfect production: manufacturing only good parts, as fast as possible, with no stop time.So, as a benchmark, what is considered a “good” OEE score? What is a world-class OEE score? As a baseline, OEE can be used to track progress over time in eliminating waste from a given production asset. As a benchmark, OEE can be used to compare the performance of a given production asset to industry standards, to similar in-house assets, or to results for different shifts working on the same asset.OEE is useful as both a benchmark and a baseline: An OEE score of 100% represents perfect production: manufacturing only good parts, as fast as possible, with no downtime. OEE (Overall Equipment Effectiveness) is a “best practices” metric that identifies the percentage of planned production time that is truly productive.
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