A measure that has gained increasing prominence in recent years, OEE encompasses measures of asset utilisation, performance and quality, affording a holistic and useful measure for managers.
In addition to providing training for managers* and staff, Applied Acumen experts can guide your organisation in the implementation of OEE as a measure for your operational performance.
Meaningful use of OEE as a measure should include a review of operational standards, and the planning standards (that may not necessarily be the same, and possibly for good reason). It should also encompass a review of those aspects that determine your ability to affect and improve OEE, for example the trend for complexity within the business, the planning regime in place, working capital controls and buffers, shift structures and process constraints and so on.
Is OEE useful for managing productivity?
OEE does not incorporate headcount or man-hours, so may not reflect direct labour productivity as such outside of compliance to a fixed establishment operation, so we would not recommend productivity be evaluated by looking at OEE.
What is a world class level of OEE for our business?
We do not recognise the term ‘world class’ as in reality it has little to no meaning. However, this points to several more pertinent and important questions it is indeed right to ask:
- What is the best level of OEE that we could expect to achieve given how we operate?
- Is there a better way to operate that would give us a better level of OEE?
- At this level of OEE, do we make sufficient margin to allow us to beat our nearest competitor on price?
- At this level of OEE, can we be certain that no one else, including our nearest competitor, could better it?
An Applied Acumen analysis will provide the answers to these questions and more.
Who (department) should be responsible for OEE measurement?
A great question!
Planning is surely responsible for utilisation? Engineering for downtime, Technical or QA for the yield element of it, and Operations for, well all of it?
Another reason OEE is such a great measure is because it pulls functions together, but it does mean that everyone needs to contribute, understand that contribution, and be prepared to act upon those elements upon which they can have an effect. The answer should be based upon what suits your organisation: just be sure to allocate reporting responsibility only to those people with the authority and capability to act upon it!
The Applied Acumen Shop Floor Data Capture (SFDC) module can help here as it takes the effort out of collecting the necessary information and can split it out easily for improvement action.
Can OEE be used outside of manufacturing?
We can advise you how, and where it could be used.