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 […]

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 […]

Discover Toyota’s Best Practice

I have always been impressed by Toyota’s inherent ability to adapt, improve, and embrace change even during the harshest times.  This innate ability is a signature trait of Toyota’s culture and has been the topic of intense study and research for many years. How is it that Toyota continues to thrive regardless of the circumstances they encounter?  While numerous authors […]

Killer Metrics

Managing performance on any scale requires some form of measurement.  These measurements are often summarized into a single result that is commonly referred to as a metric.  Many businesses use tools such as dashboards or scorecards to present a summary or combination of multiple metrics into a single report. While these reports and charts can be impressive and are capable […]

OEE: The Means to an End – Differentiation Where It Matters Most

Does your organization focus on results or the means to achieve them?  Do you know when you’re having a good day?  Are your processes improving? The reality is that too many opportunities are missed by simply focusing on results alone.  As we have discussed in many of our posts on problem solving and continuous improvement, the actions you take now […]

How Effective is Your Problem Solving?

Background Of the many metrics that we use to manage our businesses, one area that is seldom measured is the effectiveness of the problem solving process itself.  We often engage a variety of problem solving tools such as 5-Why, Fishbone Diagrams, Fault Trees, Design of Experiments (DOE), or other forms of Statistical Analysis in our attempts to find an effective […]

Pivot Tables, OEE, and Differentiation Strategy

Automated systems are great at creating data and generating reports but they don’t always give us what we’re looking for.  Microsoft’s Excel Pivot Tables provide an amazing ability to create and generate custom reports on the fly and it’s easier than you may think.  Could this be a differentiation factor for how your company works with OEE data versus others […]

Differentiation Strategies and OEE (Part II): The Heart of the Matter

An article published in Industry Week magazine comprises part of our pursuit of differentiation strategies and OEE.  This will serve as the topical element of our post for today. Enjoy the article, OEE:  The heart of the matter, and we’ll provide our thoughts and insights as well.  If the above links do not work, you can copy and paste the […]

Differentiation Strategies and OEE (Part I)

If your competitors are using OEE to manage their processes just like you, how do you plan to establish a unique approach that helps your company to outperform them?  You may be surprised to learn that the perception of process management and control created by high technology OEE solutions can quickly be shattered by the lack of specific process level […]

The High-Velocity Edge Is Here!

Update:  Steven J. Spear has been awarded the Philip Crosby Medal for his book “The High-Velocity Edge: How Market Leaders Leverage Operational Excellence to Beat the Competition” according to a Press release from ASQ—the world’s largest network of quality resources and experts (Milwaukee, WI March 2, 2011). We have raved about the book “Chasing the Rabbit” written by Steven J. Spear […]