How to increase OEE performance

Manufacturers are under ever-greater pressure to produce the highest quality products at the lowest possible cost, with shorter and shorter lead-times.

This makes it ever more essential for manufacturers to quantify the performance of their plant, manufacturing lines and machines (and to find ways to improve in each area).

OEE (or Overall Equipment Effectiveness) is a way to get the valuable data you need at the machine, assembly line and plant level.

OEE takes the principles of Lean Manufacturing, and Total Productive Maintenance (TPM), to provide a system is fuelling the development of advanced analytics and Business Intelligence (BI) software.

It is essential to bear in mind, however, the limits of what OEE can and cannot do.

Though OEE is a useful metric, when taken out of context it can mask larger manufacturing challenges and hide performance gaps at the machine, production line and plant or factory level.

OEE has been known to actually slow down production, and to make organisations less lean and customer-centric – far from the ideal outcomes.

When used correctly as a performance metric, however, OEE can bring (and has brought) real, measurable results to manufacturers, like the industrial goods manufacturers who standardised OEE as their primary performance measure, to reduce scrap rates by 27% over four months, or the injection moulding manufacturer who improved OEE performance by 7% in three months to increase gross profit by $1.2m across their six global production plants.

OEE is calculated by multiplying the percent of the time that manufacturing machinery is available by production performance (ideal cycle time x total count/run-time and product quality (goods count / total count)). An OEE score of around 80-85% is generally considered to reflect a world-class manufacturing operation.

In this whitepaper from IQMS you’ll discover:

  • Where to start on your journey to improving OEE performance
  • A roadmap for increasing your OEE performance the right way
  • Real-world lessons learned from improving OEE performance for manufacturers
  • Insights on how manufacturers can improve their OEE performance, without falling into the trap of taking OEE metrics out of context and losing performance



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Improve your shop floor productivity with DELMIAWORKS

DELMIAWORKS (known as IQMS before they were acquired by Dassault Systemes in 2019) provides mid-market discrete and process manufacturers with an end-to-end ERP System and real-time production monitoring solution. Developed with a ‘shop floor first’ philosophy, DELMIAWORKS not only helps you increase manufacturing efficiency, but gain visibility into the performance of your plant floor.

You can find out more about DELMIAWORKS manufacturing ERP here