OEE and Human Effort

I was recently asked to consider a modification to the OEE formula to calculate labour versus equipment effectiveness.  This request stemmed from the observation that some processes, like assembly or packing operations, may be completely dependent on human effort.  In other words, the people performing the work ARE the machine. I have observed situations where an extra person was stationed […]

5 New Paradigms for a Socially Engaged Company

I have discussed how company culture can significantly influence results.  Follow this link, 5 New Paradigms for a Socially Engaged Company, and prepare to be amazed.  How do these paradigms compare with your own? Engaging your teams can be as significant as any new investment in technology.  How much of an improvement would we have to make in Overall Equipment […]

OEE, Labour, and Inventory

Almost every manufacturing facility has a method or means to measure labour efficiency.  Some of these methods may include Earned versus Actual hours or perhaps they are financially driven metrics such as “Labour as a Percent of Sales” or as “Labour Variance to Plan”.  As we have learned all too well through the latest economic downturn, organizations are quite adept at using these metrics to […]

The Face of Manufacturing in 2011

Happy New Year! Another year begins with the confidence that the manufacturing sector will continue to recover from the crash of 2008-2009 that continued its unrelenting grip well into 2010.  There is little doubt that the face of industry in North America and around the world has changed but is it really on the rebound? I am of the opinion […]