| Terrence
O'Hanlon, the host of that chat session had an
excellent quote that gets to the heart of what I have
seen, “They do not know what they do not know”.
With the knowledge and utilization of the OEE
calculation, it is common to realize greater than 40%
increase in your bottom line. If you’re making a
profit now, just think of the opportunity. More
importantly, OEE is the glue that sustains other
initiatives by enabling all to clearly see where to
focus, and the results of their efforts. The exciting
point is that OEE is a simple method of measuring, you
can start utilizing it Today!
The world’s leaders
in the industry are mostly in agreement on how to
implement OEE and why. I contribute this fact to its
simplicity. Identify your bottlenecks and major cost
centers to benchmark and monitor first. Most recommend
using the calendar time metric (24/7/365) for your
availability factor. As machine utilization will also
indicate reliability performance, giving you the whole
picture and immediately focusing your resources on the
greatest opportunity. Also using OEE as a benchmarking
tool would not work well if based on a variable such
as production schedule. Benchmarks must be based on a
constant to allow portability to similar industries
and markets. The bottom line is the method of
implementing OEE is irrelevant if you don’t start
utilizing it at all. It is very true what they say,
“Do something is better than doing nothing at
all”.
My challenge to the
industry is to Stop OEE Ignorance, and spread the word
about this valuable tool. Joel Leonard's favorite
topic is “What is the Cost of Ignorance?”. I
propose that in using True Downtime Cost, we will
start to see. Below are the best resources I have seen
to follow up on this article.
TDC – www.DowntimeCentral.com
Standards – http://www.mimosa.org/othermod.htm
OEE - http://www.oeeconsulting.com/
Also Overall
Equipment Effectiveness – A powerful
Production / Maintenance Tool for Increased Profits, Robert
C. Hansen-Industrial Press, 2002
Don Fitchett is the
founder of Business Industrial Network, an internet
based company that offers online technical support for
equipment in all manufacturing industries worldwide. www.bin95.com
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