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Key Performance Indicators & OEE

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Key Performance Indicators & OEE

With the cost of energy/materials on the rise and consumer spending down, efficiency plays a vital role in improving a plant’s production process to help sustain and surpass acceptable margins.

With this in mind the question now becomes: what can we "the plant" do to achieve the largest and quickest return on investment?

The answer: OEE/DTM solutions or Overall Equipment Effectiveness complimented by a Downtime Management System.

By definition OEE is cumulative measure of three separate factors: Availability, Performance and Quality and together they can provide you with a good measure of how well your plant is producing. Such information is critical when trying to determine bench-marking in order to improve your company's production process.

OEE data is even more valuable when complimented by a Downtime Management System. A Downtime Management System (DTM) gives a company the ability to collect and classify downtime data from the shop floor into meaningful information that can help managers understand the root causes of production inefficiency, therefore giving greater visibility to make more informed decisions on process improvement.

Source: Siemens SINUMERIK Integrate for Production - AMP

The functionality provided by an OEE & DTM system includes:

  • Automatic or manual acquisition of downtime, counters, design speeds and contextual data
  • Calculation of standard & custom KPIs
  • Downtime classification via reason trees
  • Downtime management and analysis support
  • Data contextualization against meaningful production data as well as custom data
  • High visibility touch panel operator pages
  • Supervisor pages for detailed analysis
  • Downtime reports & dashboards with drill down capability

OEE is a powerful tool that, when used correctly, can truly unlock the hidden potential of the shop floor. Worldwide, the accepted estimate for the average OEE level is between 45% and 60%; whereas truly efficient factories strive for a world class rating of 85%. The only way to reach that best-in-class rating is through process improvement and to get there your company needs the right tools. Using the information gathered form OEE/DTM systems will allow management to identify and prioritize specific problems so they can be monitored more closely. Once a clear idea of the problem is identified then a solution can be decided upon and implemented for the shop floor to increase efficiency.

Below is a list of benefits companies often see levering on the information provided by a OEE/DTM solution:

  • Reduced downtime & rate losses by increasing or maximizing asset utilization
  • Improved operational cost control by increasing plant reliability, optimizing equipment utilization and maximizing energy and labor efficiency
  • Improved performance via root-cause analysis and production performance reporting
  • Reduced maintenance costs by increasing plant availability, maintenance efficiency and by optimizing planning activities
  • Optimized product quality grading process
  • Reduced waste, rejects and reworks