We are all familiar with the term OEE. It’s a great way to measure how efficient your factory is, and it can also help you see where your manufacturing process could be improved. But there are three factors that affect OEE: availability, performance, and quality. Let’s take a look at each of these so you can better understand how they impact your bottom line.
OEE Is Simply A Measure Of Efficiency
OEE is a way to measure the efficiency of your factory. It’s calculated by dividing the number of hours that a machine is down by the total number of hours in a given time period. For example, if you have four machines and they each run for 8 hours per day, then one machine will be down for 2 hours (or 25%). If this happens consistently over time, it means that there is something wrong with your process or equipment–you’re losing money because it isn’t working properly!
OEE can also be used as a way to calculate how efficiently you are using your equipment: if all four machines were running at 100% OEE every day and they each had an operating cost of $100/hr., then your total operating cost would be $400/day ($100 * 4). But if only two out of those four machines run at 100% OEE each day while still costing $100 per hour each ($200 total), then this would result in saving $80/day ($160 -$80).
The Three Factors That Affect Oee
The three factors that affect OEE are availability, performance, and quality.
- Availability: This is the percentage of time that your equipment is in a “ready” state. If you have two machines, one running at 90% availability and another running at 50%, your overall OEE will be 60%. To improve this number you need to ensure that all of your machines are running at their maximum efficiency levels so they can be available as much as possible.
- Performance: The speed with which work is completed is measured by how long it takes for each product or service to be completed from start to finish. For example if it takes an employee 15 minutes per unit then their performance would be 1/15 = 6%. Improving this number means reducing waste which could be anything from scrap material left on the floor after each job has been completed through poor layout designs of equipment within a facility or even inefficient methods being used during production processes themselves (for example using manual labor instead of automated systems).
- Quality: Quality is measured by the percentage of acceptable products or services that are produced. In other words, if a machine produces 1,000 units and 900 are acceptable then your quality would be 90%. Improving this number means ensuring that each product or service meets customer requirements as well as having an effective way to measure this (such as using statistical process control).
Availability Refers To The Percentage Of Time That Your Equipment Is In A “Ready” State
The first factor is availability. Availability refers to the percentage of time that your equipment is in a “ready” state. It’s affected by equipment breakdowns, maintenance, and other factors. For example, when an oven breaks down for an hour and you can’t use it for cooking or baking purposes, this will reduce the OEE score for that period of time.
To measure availability: Take a look at how often breakdowns occur and how long they last; then compare them against industry standards (or even better–your own goals). You could also track any downtime due to maintenance work being done on your machines, which would also affect their OEE scores negatively if they are not back up and running as soon as possible after being repaired or replaced with new parts.
Performance Is The Speed With Which Work Is Completed
Performance is the speed with which work is completed. It’s the amount of time it takes to perform a task, from start to finish. Performance can be measured in units per hour or days per unit (i.e., how many units can be produced in one day).
The best way to improve performance is through better equipment and processes, but it’s also affected by other factors such as availability and quality of materials used in production processes. For example: If you have poor quality parts coming into your facility, they will take longer than expected for your team members who need those parts when building something new out on their assembly lines–and this will affect their overall productivity levels!
Quality Refers To The Percentage Of Products Or Services That Meet Customer Specifications
Quality refers to the percentage of products or services that meet customer specifications. Quality is important because it affects your ability to generate positive cash flow, reduce costs, and increase customer satisfaction.
Quality is about meeting the needs and wants of your customers. For example:
- If you sell clothing online, then a quality product would be one that fits the buyer’s body type (size and shape) perfectly.
- If you provide insurance services, a quality service would be one where all contracts are clear and understandable so there are no surprises later on when it comes time for payment or claims processing; moreover, all staff members should have received proper training so they know how to handle each situation correctly based on industry best practices
Oee Software Can Help You Optimize Your Factory Operations
OEE software can help you optimize your factory operations. It can help you increase productivity and reduce costs, improve quality and customer satisfaction, as well as improve safety and environmental performance.
OEE software generates reports that show how well your factory is performing compared to the target rate. If there are any areas that need improvement, then these will be highlighted in red so they’re easy to spot at a glance–no more sifting through endless spreadsheets!
Conclusion
OEE is a great tool for evaluating your factory, but it’s important to understand that OEE is not the only factor that affects your business. There are many other factors that influence your overall production efficiency, including availability, performance, and quality. OEE software can help you optimize these three areas so that they work together seamlessly and consistently produce high-quality products at an optimal pace.
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