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 […]
- 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 […]