Manufacturers & Distributors ARTICLE -
Is your equipment operating at peak effectiveness?
Target Audience: Manufacturing and Distributing Companies, M&D Industry Employees, Manufacturing Distributors
These days, when many manufacturers are seeing less work coming in and less room for mechanical error, a manufacturing operation has to be in top shape. The key to avoiding costly downtime starts with measuring overall equipment effectiveness, or OEE.
An OEE measurement gives you the percentage of time your equipment, when running, produces quality products at an acceptable rate. Mathematically, it’s the product of the machine availability rate (the time your equipment runs vs. the time it could have been running) multiplied by the production rate (the quantity produced during a run vs. the quantity that could have been produced), multiplied by the first-pass quality rate (the amount of good product vs. the total amount of product produced).
According to OEE experts, the average OEE percentage among manufacturing plants is 60%, while a world-class OEE percentage is 85%. Reaching an acceptable OEE percentage requires a collaborative effort from your entire team. For example, an effective routine could be to have your equipment operators record their assigned metrics each day so your line managers can review OEE at the end of each shift.
With these regular reports, maintenance personnel can get to the root of any small problems before big ones arise. If your employees have limited time to record and calculate this data, consider implementing an OEE software program that will help you streamline the process.
As you analyze patterns in your regular OEE measurements, discuss with your technical experts ways in which different metrics can be tweaked to increase your overall OEE percentage. Make sure that any changes made are in the best financial interest of your manufacturing business.
Find out how our M&D accountants can add value to your business. Email us or call us at 1 (888) 875-9770.
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