When it comes to measuring and improving productivity, the question of whether a plant needs an overall equipment effectiveness (OEE) system is top of mind for many plant managers. OEE -- the ratio of good parts produced versus what could have been produced under ideal conditions -- is a simple performance indicator to which all managers can relate. Because it shows a machine's actual performance compared to its theoretical maximum, OEE can be applied to accurately compare any machine or any line, in any industry, anywhere in the world.
But using an OEE score alone to reduce costs is like using a credit score to reduce monthly expenses. Certainly, a credit score can help measure a consumers' future likelihood to pay back creditors, or to compare machine performance in the case of OEE. However, the data alone shows only a historical view of what's occurred. It doesn't provide any specifics in terms of actual performance and root causes.
To truly measure creditworthiness in a way that could lead to improvements, a consumer would need detailed data about spending habits and the specific spending behaviors that impacted their credit score. Likewise, an OEE score alone doesn't offer the detail of data required to understand the root causes of inefficiency and downtime, which makes it difficult for managers to identify and implement solutions that ultimately help reduce costs.
The good news is that the detailed data necessary to identify actionable areas for improvement already exists within control and human machine interface (HMI) systems on the plant floor. A performance management software system can collect this data and put it into context that will help the plant manager establish meaningful production metrics that go beyond an improved OEE score to achieve significant cost reductions.
