How To Ratchet Up Overall Equipment Effectiveness

Organisations that achieve year on year improvement in OEE use it as a "Leading rather than Lagging" Indicator (see box 1). That is they use OEE analysis to clarify
 future improvement potential and apply relevant Focussed Improvement tactics to systematically deliver that potential.

Lagging indicators perform an important role in tracking short term/daily performance. Unfortunately, OEE parameters are normally set for an average product/production run. As individual days will vary from average in product mix, production run length etc OEE will not serve well as a lagging indicator.

World Class Improvement Benchmarks A weekly rather than daily OEE review cadence provides a more useful assessment of how well the asset/line is working against those average expectations. Leading companies combine that review with a leadership mindset to make visible opportunities for improvement and resources to apply the OEE Focussed Improvement Toolset.

Using this toolset, high performing organisations are able to achieve increases of 30% to 50% in OEE over a 3 to 5-year period (Figure 1)

The Focussed Improvement Toolset contains practical steps to 1. Stabilise OEE to improve reliability by dealing with weaknesses in working methods, skill and knowledge gaps, 2. Optimise OEE to reduce Quality defects by improving process control and applying low cost automation.

The business benefits are significant and include, Increased capacity at low or no cost, Improved predictability of output leading to improved delivery performance and shorter production lead times, Reduced material and labour costs, Improved quality consistency, Reduced scrap and rework.

In addition to these gains, Front line teams develop a deeper knowledge about their work environment and become engaged with creating new Standard Operating Procedures, new quality standards, poka-yoke devices, and maintenance instructions without having to be told to do so.

To learn more about how practical ways to apply this approach in your organisation check out our 1 day primer course