I was recently asked to consider a modification to the OEE formula to calculate labour versus equipment effectiveness. Â This request stemmed from the observation that some processes, like assembly or packing operations, may be completely dependent on human effort. Â In other words, the people performing the work ARE the machine. I have observed situations where an extra person was stationed […]
- Advanced Lean Manufacturing
- Contingency Planning
- Cost Control
- Labour Efficiency
- Lean Metrics
- OEE: Overall Equipment Efficiency
- Performance
- Standardized Work
OEE and Human Effort
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 […]