If you’re looking to boost your Overall Equipment Effectiveness (OEE), it can be hard to find the time to analyse and optimise every factor involved. After all, you’ve already got enough to do to keep production running smoothly. An external team can be a better choice as they bring a fresh view and have experience with hundreds of companies like yours. In this post, Michael Körner, Manager Global Service Sales at SIG, describes what really constitutes OEE and how SIG can improve yours:
Although the definition of Overall Equipment Effectiveness (OEE) can vary depending on the industry, there are three basic pillars to it: Availability – productive uptime, Performance – production output, Quality – the number of products that passed QA checks.
Here’s an overview of how these values are calculated.
Availability is the scheduled production time minus planned downtime (such as for maintenance) and unplanned downtime (like an unexpected stoppage).
Performance refers to the output you generate in the available production time
Quality is the total number of cartons filled that meet the required quality standards
To calculate the OEE figure you multiply these three factors. For example: Availability 76% x Performance 84% x Quality 97%. This would give you an OEE of 62%, which is a bit below average – a rough guideline is 65% for our industry. If you have OEE of more than 80%, consider yourself one of the elite!
The factors to consider
“One of the biggest challenges – one of the most difficult to solve – is the organisational issue.”
As you know, there are many factors that influence your OEE. Technology is certainly an important one – not surprising, as it relates to the machines actually doing the work. But one of the biggest challenges – and one of the most difficult to solve – is the organisational issue. Looking back on SIG’s many years of experience in this industry and the dozens of customers we’ve talked to, optimizing the organizational processes in a joint effort is often the main obstacle to a respectable OEE. It’s easier to fix a technical problem than to optimise production schedules and change the behaviour of your personnel on the shop floor.
So what can be done?
It’s important to step back from everyday operations to get some visibility. In other words, run a detailed audit of your actual situation and use this to plot your desired outcome. Generally speaking, it’s easier for an outsider to do this than internal people – after all, they already have a full-time job. The most important thing you need with external consultants is trust. At SIG, we build up a uniquely high level of trust with our customers because we have very stable teams – the highly-qualified engineers and consultants doing the audits have been with us for 15 years on average. Using these teams, we offer an extremely detailed audit that takes at least one week on-site and another week for the thorough analysis and looks at all production processes from start to finish. It even goes beyond our own machines to encompass downstream equipment.
“Improvements you can make now, plus organisational changes you can introduce for permanent benefits over the longer term.”
The result of the audit is a detailed action plan – a catalogue of measures that you can take to improve your OEE. Customers are almost always very impressed by our scientific yet sympathetic approach – after all, we’re dealing with your staff as well as with the machines. The recommended measures are divided into two areas: immediate and ongoing. In other words, improvements you can make now, plus organisational changes you can introduce for permanent benefits over the longer term.
Project or performance-based pricing
You may already be familiar with the three SIG service packages: performancePlus, availabilityPlus and maintenancePlus. The first product, performancePlus, is designed to help you maximise your OEE and covers every aspect of your line, as described above. The great thing is that you can subscribe to it as a regular service contract, or ask us to complete the entire process as a one-off project. With our SIG service products, we systematically use lean methodologies and measurements to streamline and optimise our customers’ production processes. Most of our performancePlus customers find that they can produce more output in the same amount of time, or the same output in less time. And obtain an OEE they can be proud of. This was exactly what one of our customers in Mexico did. We worked closely with this large dairy to increase its OEE. The project had excellent results – a nine-point increase in OEE in the short term, as well as all the tools they needed to push this up to 15 points with ongoing improvements.
Quantifiable benefits for your company
An increase in OEE offers advantages throughout your production processes and beyond. It optimises your costs and output while strengthening your competitive position in the market. It can also help you cut your filling costs and increase sales. And it could help you get that promotion you’re aspiring to! The organisational approach – covering people and processes as well as equipment – makes this possible.
Do you want to know more about improving OEE and SIG’s service packages? Write us an email, leave a comment or give us a call.