Tonytn36
Diamond
- Joined
- Dec 23, 2007
- Location
- Southeastern US
The thread on automation tripped a couple of memory cells way back there somewhere and got me curious.
How efficient do you really think your shop is? Want to know how different reality is vs. perception? Really want to know where things are screwed up and where you need to start fixing it? Want to know why you aren't making as much money as you should? Has anyone here ever heard of OEE?
A bit of explanation: OEE stands for Overall Equipment Effectiveness. It is a set of hard numbers that will show you just how well you are doing as a manufacturer, and it applies to _any_ manufacturing, whether it be a one man shop or a 40,000 person corporation, and what you make has no influence.
OEE contains 3 factors, in basic terms:
1. Availability: How many minutes the equipment was available for production.
2. Performance: How well did you utilize the equipment availability.
3. Quality: How effective were you at using your equipment to produce a quality product.
OEE = 1 x 2 x 3, as a percentage.
To be classified as world-class manufacturer, in whatever segment you are, one man or not, the OEE should be 85% or better. Most companies will fall into the 50-70% range.
OEE will point you in the direction you need to focus your efforts because it points to where the problems lie.
Now, to see where you stand, go here:
http://www.oee.com/oee_quick_guide-request.html
Download the spreadsheet and guides, and fill in the information, it's pretty simple.
You can modify the spreadsheet to glean much more information, such as adding rows to explain why downtime occurred, and how many minutes per occurrence, scrap codes, etc. Don't mess with the actual calculations already in there, but this sheet can be expanded to help.
How efficient do you really think your shop is? Want to know how different reality is vs. perception? Really want to know where things are screwed up and where you need to start fixing it? Want to know why you aren't making as much money as you should? Has anyone here ever heard of OEE?
A bit of explanation: OEE stands for Overall Equipment Effectiveness. It is a set of hard numbers that will show you just how well you are doing as a manufacturer, and it applies to _any_ manufacturing, whether it be a one man shop or a 40,000 person corporation, and what you make has no influence.
OEE contains 3 factors, in basic terms:
1. Availability: How many minutes the equipment was available for production.
2. Performance: How well did you utilize the equipment availability.
3. Quality: How effective were you at using your equipment to produce a quality product.
OEE = 1 x 2 x 3, as a percentage.
To be classified as world-class manufacturer, in whatever segment you are, one man or not, the OEE should be 85% or better. Most companies will fall into the 50-70% range.
OEE will point you in the direction you need to focus your efforts because it points to where the problems lie.
Now, to see where you stand, go here:
http://www.oee.com/oee_quick_guide-request.html
Download the spreadsheet and guides, and fill in the information, it's pretty simple.
You can modify the spreadsheet to glean much more information, such as adding rows to explain why downtime occurred, and how many minutes per occurrence, scrap codes, etc. Don't mess with the actual calculations already in there, but this sheet can be expanded to help.