How OEE Solutions for Industrial Plants Improve Production KPIs

OEE (Overall Equipment Effectiveness) metrics are used to manage and improve the overall efficiency of machines and production lines. It is one of the most popular manufacturing metrics of recent times. Plant and operations managers use the OEE calculation to measure performance at the machine, line and plant level by allowing them to compare the uptime of an asset with the expected uptime.

OEE solutions for industrial plants are the best tools for managing operations in the context of cost and efficiency-focused manufacturing. OEE analysis is used to identify line flow issues so that line flow can be adjusted for higher yields, reduced spoilage and downtime, so it is important to accurately measure these metrics for optimal results.

What is OEE for industrial plants?

OEE for industrial plants is a measure of the efficiency of an asset and tells us the operating ratio of a piece of equipment by comparing its actual working time against the time during which it is estimated to be in operation.

It is expressed as a percentage and a low OEE can be the result of many losses during the day, such as unplanned stops, dwell time, material shortages, operator intervention, feeding errors or waste.

But it is not just a matter of measuring OEE, it must also be analysed by specialised personnel with appropriate training and tools to help identify losses and, on that basis, achieve better manufacturing performance.

How is OEE measured in industrial installations?

Industrial OEE is the quotient between the output of the equipment during a planned production time period and the amount of product that should have been produced at the rated speed of the machine.

The calculation provides an accurate benchmark for performance and can help identify underperforming assets but does not provide any information on the source of losses, leaving questions on how to improve performance.

The OEE calculation method that provides the most detail for analysis is the one that looks at availability, quality and performance.

• Availability: The percentage of time that, as the name implies, an asset is available for production. It is the time the asset is actually in operation divided by the time it is scheduled to be in production. Equipment failures, changeovers and material shortages can shut down a machine and reduce the time available. To calculate availability, an accurate record must be kept of start-up and shutdown times during planned production.
• Quality: The percentage of time a machine has produced quality products while it was available. Quality losses include products requiring rework, material rejected by the machine and products that do not meet quality standards. To measure quality, an accurate record must be kept of the waste produced during planned production.
• Throughput: This is the ratio that measures the ability of a machine to perform at its rated speed. Operator skills, machine wear and tear, raw material quality, feeding errors, frequent stops and adjustments decrease machine performance. Yield losses often become unclassified or unmeasurable losses, and are often the most difficult to measure due to the frequency and variety of losses.

OEE data collection and analysis to improve production KPIs

The purpose of the analysis and OEE management in industrial plants is the ability to understand each loss, where it came from and why it occurred. Such a detailed analysis requires a method to account for every minute of operation and to review the KPIs involved in the process.

In general terms, typical losses observed by manufacturers are for breakdowns, start-up and adjustments, minor shutdowns, reduced speed, start-up rejects and production rejects.

Events such as breakdowns and operator stoppages are recorded as they occur, either manually or automatically from the machine controller. However, some events occur so quickly that it is not possible to record them manually, and many companies ignore them because they only focus on those with long durations. Automatically collected data is therefore more detailed and accurate and captures feeding errors, material shortages or line delays that can lead to significant losses. There are specific systems for collecting and organising OEE data accurately in order to identify opportunities to increase availability.

Many companies with complex productions where there is no rated speed per line choose the OEE metric to compare the performance of different manufacturing technologies, various products and rated speeds and complex scheduling environments.

The use of collected KPI information will allow production managers to identify and prioritise specific problems so that they can be closely monitored. Once a clear idea of the problem is established, then a decision can be made about the solution, and this will be implemented on the shop floor to increase efficiency.

How to improve competitiveness and sustainability with OEE solutions

The OEE solutions for industrial plants They measure the difference between actual performance and potential performance of a manufacturing unit and focus on eliminating waste, but also allow to drive improvement of manufacturing KPIs.

The most competitive manufacturing companies use OEE metrics together with OEE software solutions to set, verify and achieve targets for competitiveness, sustainability and to eradicate waste. In this way some of the production KPIs that can be improved are::

• Minimising raw material wastage
• Reducing energy and water consumption during non-productive time
• Reducing waiting time and downtime
• Minimising time spent on format changes
• Prevent equipment from operating at sub-optimal speeds.
• Reducing the time spent on readjustments
• Increasing capacity and flexibility
• Significantly improve staff welfare.

Therefore, OEE in industrial plants measures asset performance and drives improvements that provide companies with lower costs, greater flexibility and profits. OEE metrics can be an extremely useful analysis tool when high-resolution OEE data is collected and detailed analysis is used to identify improvements.

Undertakings which systematically use OEE solutions for industrial plants to measure and analyse manufacturing performance, they will achieve better results and significant benefits.