Start driving decisions with machine data.
Categories:
    Slide3.jpg

    One of the greatest struggles for any manufacturer is knowing what is actually happening on the shop floor. Machine monitoring systems allow manufacturers to collect the critical data that gives department heads, supervisors, and operators real-time information about shop-floor activities, enabling them to make faster, more confident decisions.

    If the objective of machine monitoring is to understand current performance, measure that performance over time, and then improve on it, one must first define performance.

    The most commonly used metric to do so is OEE (overall equipment effectiveness). As is the case with many performance metrics, OEE is often misused and misunderstood.

    While OEE will help you identify potential losses and understand where your process is falling short, it's so much more than just a performance metric; it's the cornerstone of a continuous improvement strategy.

    First, let’s talk about what factors into your OEE calculation:

    Defining OEE:

    Simply put, OEE measures the efficiency of a machine. OEE takes into consideration the Availability, Performance, and Quality of a machine.

    In mathematical terms, OEE = Availability * Performance * Quality

    Calculating OEE:

    For the purposes of calculating OEE, the underlying metrics are as follows:

    Availability - Availability can also be referred to as Uptime. This is the amount of time the machine is in cycle producing parts compared to the amount of time the machine is scheduled to be in cycle. Any unplanned downtime will result in a lower availability percentage. The main factors that hinder machine availability are:

    → Equipment Failures (Breakdowns)

    → Machine Set-Up and Adjustment Time

    Performance - Performance refers to the speed that parts are produced while the machine is in cycle. It is calculated as the average in-cycle time to produce a part divided by the ideal in-cycle time to produce a part. The more parts produced within a period of time, the higher a machine's performance percentage. Key factors that negatively influence performance include:

    → Machine Idling and Minor Stoppages

    → Reduced Speed of Operation

    Quality - The quality metric is the percentage of good parts out of total parts produced. Any parts rejected during a run will lower the quality percentage of a machine. Some of the primary reasons for quality reduction include:

    → Process Defects

    → Reduced Yield (from startup to stable production)

    What is an OEE score?

    • An OEE score of 100% is perfect production; this requires only manufacturing good parts, as fast as possible, with no unplanned downtime
    • An OEE score of 85% is considered world class for manufacturers. For many companies, it is a legitimate and reasonable long-term goal.
    • An OEE score of 60% is fairly typical for manufacturers, but indicates there is room for improvement.
    • An OEE score of 40% is common for manufacturing companies that are just starting to monitor and improve their manufacturing performance. In most cases, OEE can be easily improved just by monitoring your machines and learning where the inefficiencies lie within the manufacturing process.

    OEE and Machine Monitoring:

    Manufacturers typically work quickly to identify and solve problems, but fail to take the time to understand what is at the root of the problem. Knowing how to calculate and optimize your OEE can provide answers to both the big picture problem and the details surrounding the problem.

    The first and most important step to improving OEE is the integration of a machine monitoring system onto your shop floor. This will provide the production visibility necessary to boost OEE. MachineMetrics monitoring software enables manufacturers to not only determine their current OEE, but to use it to identify potential problems and understand where your processes are falling short. Is it performance, quality or availability?


    OEE is much more than just a performance metric; it is the cornerstone of a continuous improvement strategy. Visionary leaders can utilize OEE to proactively identify issues and promote accountability on the shop floor. Understanding and utilizing OEE can help align the goals of both senior management and plant floor operations. This alignment will encourage all employees to be more proactive, and through this collaborative process, productivity and revenue will increase.

    Start Monitoring Your OEE Today

    Comments

    Leave a comment

    Subscribe to our mailing list

    Related posts

    Embracing Cultural Change, a Vital Part of Digital Transformation

    Embracing Cultural Change, a Vital Part of Digital Transformation

    Manufacturing is shifting into the digital age, and it’s not only the technologies that are experiencing a transformation. Shifting from siloed and hierarchy-driven business practices to data-driven d...

    MachineMetrics
    How to Avoid Being the

    How to Avoid Being the "Blockbuster" of Manufacturing

    Industries change generally for a few specific reasons: new technologies arise that present better solutions to people’s problems, people change in a way that presents new problems that require better...

    MachineMetrics
    Four Considerations for Manufacturing with the Industrial Internet of Things

    Four Considerations for Manufacturing with the Industrial Internet of Things

    With global spending on IIoT expected to reach $745 billion in 2019, industries continue to gear up for Industry 4.0.  According to International Data Group (IDC), that number represents an increase o...

    MachineMetrics
    Managing the Risks of Digital Transformation

    Managing the Risks of Digital Transformation

    Digital transformation is a disruptive process that often throws companies into uncharted territory for their business.  Many organizations have plunged headlong into the process and are ahead of the ...

    MachineMetrics
    MachineMetrics Becomes One of the First Partners to Achieve AWS Industrial Software Competency Status

    MachineMetrics Becomes One of the First Partners to Achieve AWS Industrial Software Competency Status

    07/23/2019– MachineMetrics Industrial IoT Platform for discrete manufacturing announced today that it has achieved Amazon Web Services (AWS) Industrial Software Competency status. This designation rec...

    MachineMetrics
    MachineMetrics Awarded “Best AI-Driven Manufacturing Technology Solutions Provider”

    MachineMetrics Awarded “Best AI-Driven Manufacturing Technology Solutions Provider”

    MachineMetrics Recognized for AI-Driven Manufacturing Technology 

    MachineMetrics
    The Unattended Factory and Industrial IoT

    The Unattended Factory and Industrial IoT

    Much has been written about the “hidden capacity” that can be unlocked by Industrial IoT using advancements such as digital twins.  With the success of this technology,  a new report by Grand View Res...

    MachineMetrics
    Using Cloud Manufacturing Software for Increased Productivity

    Using Cloud Manufacturing Software for Increased Productivity

    The concept of cloud computing has been around for decades.  And it was originally derived from the flow charts and diagrams used to envision the early foundations of the internet.  Even then, the con...

    MachineMetrics