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 […]

OEE: Planned Downtime and Availability

As a core metric, Overall Equipment Effectiveness or OEE has been adopted by many companies to improve operations and optimize the capacity of existing equipment.  Having completed several on site assessments over the past few months we have learned that almost all organizations are measuring performance and quality in real-time, however, the availability component of OEE is still a mystery […]

Going DEEP with OEE

Does anyone actually look at their daily equipment availability? Instead of using TEEP that is typically based on calendarized availability, looking at the Daily Equipment Effectiveness Performance of your operation may provide some interesting insights. Working overtime due to material or equipment availability occurs many times.  Unfortunately, we find that sometimes these very same machines are idle during the week. A detailed […]

OEE For Manufacturing

We are often asked what companies (or types of companies) are using OEE as part of their daily operations.  While our focus has been primarily in the automotive industry, we are highly encouraged by the level of integration deployed in the Semiconductor Industry.  We have found an excellent article that describes how OEE among other metrics is being used to […]

OEE for Batch Processes

We recently received an e-mail regarding OEE calculations for batch processes and more specifically the effect on down stream equipment that is directly dependent (perhaps integrated) on the batch process.  While the inquiry was specifically related to the printing industry, batch processing is found throughout manufacturing. Our more recent experiences pertain to heat treating operations where parts are loaded into […]

Benchmarking OEE

Benchmarking Systems: We have learned that an industry standard or definition for Overall Equipment Effectiveness (OEE) has been adopted by the Semi Conductor Industry and also confirms our approach to calculating and using OEE and other related metrics. The SEMI standards of interest are as follows: SEMI E10:  Definition and Measurement of Equipment Reliability, Availability, and Maintainability. SEMI E35:  Guide to Calculate Cost of Ownership […]

OEE: Frequently Asked Questions

We added a new page to our site to address some of the more frequently asked questions (FAQ’s) we receive regarding OEE.  We trust you will find this information to be of interest as you move forward on your lean journey.  We always appreciate your feedback, so feel free to leave us a comment or send an e-mail directly to LeanExecution@gmail.com or Vergence.Consulting@gmail.com We have had […]

Welcome to LeanExecution!

Welcome! If you are a first time visitor interested in getting started with Overall Equipment Effectiveness (OEE), click here to access our very first post “OEE – Overall Equipment Effectiveness“. We have presented many articles featuring OEE (Overall Equipment Effectiveness), Lean Thinking, and related topics.  Our latest posts appear immediately following this welcome message.  You can also use the sidebar widgets to select […]

SPC for OEE

Some of our readers have expressed an interest in the application of Statistical Analysis Tools for OEE.  We have also reviewed various texts and articles that have expressed opposing views on the application of Statistical Tools with OEE data. Our simple answer is this:  At best, statistical tools should only be used on unique or individual processes.   Comparisons may be made (with caution) […]

6 things OEE is NOT!

While OEE has been receiving much deserved attention as manufacturers look for ways to improve their bottom line, it is not the cure for all that ails manufacturing.  Many in the manufacturing community seem to be getting caught up in the buzz and hype of OEE and its profound ability to improve the bottom line. 1.  OEE is NOT magic As we were […]