7 Ways OEE Benefits Manufacturers

Management consultant guru Peter Drucker is perhaps best known for creating one of modern management’s most famous quotes: “If you can’t measure it, you can’t improve it.” With a clearly established metric for success, you can quantify progress and adjust your processes to produce the desired outcome. Without clear objectives, you’re stuck in a constant state of guessing. In Manufacturing where profit margins are getting thinner and competition is much more global and cutthroat, two primary metrics are key to success: OLE (Overall Labor Effectiveness) and OEE (Overall Equipment Effectiveness). These two KPIs broadly measure availability/efficiency, performance and Quality of both workforce and machines.

In this blog, I’d like to drill down on why and how OEE has become such a key metric in the digital manufacturing space. Here are seven reasons:

1. Reduced cost. OEE reduces costs by identifying and eliminating waste in the manufacturing process. This can include reducing the amount and number of materials used, the amount of time it takes to produce products, and the amount of energy consumed.
2. Increased productivity. OEE increases productivity by improving the efficiency of the manufacturing processes. This can lead to more products being produced in less time, which can lead to increased profits.
3. Enhanced fact-based timely decision-making. OEE can provide valuable data that can be used to make better and smarter decisions in the manufacturing process. This will lead to improved efficiency, productivity, and profitability.
4. Improved customer service. OEE can help to improve customer service by reducing the time it takes to fulfill orders and by ensuring that products are delivered on time and in good condition. This can lead to increased customer satisfaction and loyalty.
5. Sustainability. OEE can help to improve sustainability by reducing the number of resources used in the manufacturing process. This can help to reduce the company’s environmental impact.
6. Improved collaboration between departments. OEE can help to improve the collaboration between departments involved in the process (production, maintenance, planning). This can lead to increased speed to address corrective and preventive actions.
7. Path for digitalization. OEE can facilitate and even accelerate the path to digitalization. With a visual approach, users can readily access the field from an application that is intuitive and doesn’t require specialized technology knowledge. Moreover, managers will be able to rapidly access all the information they need to reduce waste and improve processes.
   

Decisyon Digital OEE not only provides data related to the process (and indicates where to focus improvement activities), but allows stakeholders to drive actions to solve the detected issues with native collaboration and task management tools.

If you are looking for a way to improve the quality, efficiency, and profitability of your manufacturing process, then OEE is a valuable tool that can help you achieve your goals. Learn more about how Decisyon’s Digital OEE applications can benefit your manufacturing operation here.