Mi Group A division of Industrial Network Systems Providing MI solutions to the manufacturing industry for 20 years
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Downtime is a period during which an equipment or machine is not functional or cannot work. It may be due to technical failure, machine adjustment, maintenance, or non-availability of inputs such as materials, labor or power. Average downtime is usually built into the price of goods produced, to recover its cost from the sales revenue. Downtime plays a significant role in a company's OEE.

 

Click here to read an MI Group OEE case study

 

 

WHAT IS OEE?

Put simply, overall equipment effectiveness (OEE) is a measure of what you actually made, in comparison to what you could have made (in theory) over that time frame. The difference between the ideal and actual situation is due to losses. These losses can be categorized into various metrics that provide you with excellent data to enable you to target that specific area and help you improve.

OEE is calculated by measuring performance in the categories of Availability, Performance and Quality, and then multiplying the results. To see an example of an OEE calculation,

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WHY IS OEE IMPORTANT?

In an ideal environment, all equipment would operate all the time at full capacity producing good quality product. In real life, however, this situation is almost non-existent.

Real-time exchange of information between manufacturing and the rest of your company is critical for making business decisions that improve responsiveness, increase productivity, reduce costs and assure regulatory compliance.

HOW DO COMPANIES BENEFIT FROM OEE?

By itself, OEE only provides data about manufacturing process. But, synchronizing plant and enterprise systems creates the groundwork for a real-time enterprise that can adapt to changing demands quickly and resourcefully. The result is manufacturing visibility –a powerful agent for innovation and performance advancement.

Industrial Network Systems’ MIGroup has a proven track record synchronizing production and enterprise systems to drive bottom line results across varying industries, from Food/Beverage and CPG, to Industrial and Pharmaceuticals.

Companies that use OEE as a metric have found success when combining it with general lean manufacturing programs and also as part of TPM systems. When using OEE with these systems the benefits become significant:

  • They turn information into action: Companies can turn real-time manufacturing information into valuable business knowledge. They then use this knowledge to make informed decisions that can help them unite their automation and business information systems.

  • They simplify their connectivity: Close the gap between your enterprise and control systems. Enjoy connectivity with other manufacturing and business systems.

  • They have cost-effective productivity: With OEE, companies are able to reduce the cost and complexity associated with the maintenance and improvement of their manufacturing operations.

  • They have superior operational management: Companies are able to improve the visibility and control of their production environment, and ensure product quality with an agile response to manufacturing demands. Rapidly adapting to changes in manufacturing processes and procedures allows for increased productivity.
HOW CAN INS MI GROUP HELP YOU WITH DOWNTIME & OEE?

  • Directly tie production efficiencies to fiscal reporting.

  • Reduce investigation time for root cause analysis.

  • Shorten equipment ROI through increased utilization.

  • Decrease costs through waste elimination.

  • Increase customer satisfaction through quality improvement.

  • Pull separate business functions together with a single useful metric.

 

 

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