In the industrial sector, being aware of your plant’s profitability is key factor in remaining competitive. This is even more important in the new digital ecosystem, where remote working has been incorporated into our day-to-day life making it necessary to use artificial intelligence technology and sensors to be more efficient. To make this possible, having KPIs that measure production efficiency, and which enable corrective measures to be taken is absolutely vital.
Author: Igor Temprano, Spain & Portugal Operations Manager at Lantek
What is OEE?
One of the most important KPIs is OEE (Overall Equipment Effectiveness), an internationally recognized indicator that measures the performance of the plant based on production factors and parameters.
For an industrial plant, introducing OEE systems to improve the equipment’s ability to react to any setback that may occur in day-to-day operation of machinery is critical. It is evident that events that are not measured in a factory will remain unknown. To solve this dilemma, we need a tool that can measure each machine process and time period, and which can also be used to view possible incidents allowing engineers to take the necessary corrective measures.
OEE efficiency measurement system
This system measures the productivity of industrial equipment using a formula that covers three essential factors:
- Availability: a true measurement of the time which a machine has been actually working versus its theoretical availability. This is usually established from the production calendar. If downtime does occur, this can be linked to breakdowns, electrical failures or scheduled stops.
- Performance: the total production obtained from each of the machines is analyzed and compared with the theoretical volume that it could accomplish. If production is less than expected, possible causes could be due to an error in machine configuration.
- Quality: manufacturing quality is measured by comparing the nonconforming units with the total production quantity. This is an important factor because it can reveal repetitive patterns that may help engineers to find a common cause for the defects.
The product of these three factors provides us with a wide overview of the company’s performance and productivity. That is why it is helpful to apply this system to each individual machine to obtain more detailed results. The detail in the data will help to identify errors such as misuse and excessive use of the equipment or detecting errors in the design of the manufacturing process.
In order to properly understand the results obtained with OEE , there are percentage parameters from 0 to 100 that give an indication of factory performance:
- Below 65% there is significant financial loss and low competitiveness.
- Between 65% and 75% efficiency is low and there are losses that will only be acceptable if the company is in a period of improvement.
- Between 75% and 85% the result is acceptable, there is still slight financial loss, but competitiveness is improving.
- Between 85% and 95% are the results of good efficiency and competitiveness.
- 95% to 100% is the peak of performance and effectiveness.
OEE and MES, maximize plant performance
The key to making the most of this indicator’s three factors is to use Lantek’s MES software which can capture all of the plant data. With the Manufacturing Execution System, companies have a complete overview of everything that happens in their factory, in real time. It is the ideal program designed for the sheet metal sector for optimizing production planning. Thanks to the OEE indicators, Lantek MES can measure the performance of machine loading, availability, efficiency and quality as part of its MES KPIs.
OEE in the Industry 4.0 environment
Advances in technology help companies to improve production and, the introduction of new Industry 4.0 enablers, make it even more essential to have KPIs to measure production efficiency more accurately, especially with real time automatic data entry. Without an OEE System managers would be working blindly. Being certain that they are on the right track with accurate information will help them to detect errors that reduce factory performance.
Ultimately, by using the OEE indicator for their measurements, they can make the most of and optimize the production process and achieve greater profitability.
At Lantek, we are specialists in software platforms that improve the productive efficiency of your plant with the incorporation of an OEE System into the MES production planning program, optimizing the performance of your factory.
Lantek also has additional software programs that manufacturers can use to design and optimize cutting processes and monitor the status of production while finding out the company’s behavior patterns and KPIs. The aim is to increase competitiveness and optimize production efficiency. Lantek is a leader in the Industry 4.0 ecosystem, working on developing a 360 platform that includes Smart Factory tools to take sheet metal cutting manufacturers to a higher level, adapted to a remote working environment. These developments will deliver agility and versatility to the manufacturing process through the accurate measurement of each piece of data.