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What’s happening in the field of OEE? Where is OEE going? If you want to read about the latest developments and OEE techniques, this is the place to be. Sit back, relax and enjoy our OEE blogs and news over a cup of coffee
Do you want to set up your first OEE measurement in no-time? OEE Starterkit contains everything you need for your first and rapid deployment of OEE-based productivity improvement.
The following reasons why you should start your productivity measurement with FullFact’s Starterkit:
- easy to use
- stand-alone / manual production data collect
- comprehensive reports and analytics
- up and running in no-time including training
- easy to upgrade to FullFact’s OEE Toolkit suite with automatic data collection
FullFact Solutions, a leading provider of OEE software and services, and DataLyzer International, a leading provider of SPC solutions and services, today announced their partnership which streamlines and integrates the OEE and SPC processes for production companies.
The integration of FullFact’s OEE Toolkit and DataLyzer’s SPC software results in a robust plant-wide single operator interface, dashboard and reporting solution.
The manufacturing market requires operational excellence where quality and efficiency are maximised simultaneously on one hand, while organisations have to meet regulatory, safety and environmental requirements on the other. The combined OEE and SPC solution of these two leading providers offers manufacturers a solution to fulfil these requirements.
“It’s a great step forward now DataLyzer’s Spectrum SPC software is integrated with FullFact’s OEE Toolkit”; said Max Marinissen, Managing Director of FullFact Solutions, “SPC is part of our Connected Factory concept where our OEE software builds the centre point of production information.”
“This partnership provides a unique solution and will benefit our customers worldwide,” said Marc Schaeffers, Managing Director of DataLyzer International.
FullFact Solutions and its founders are OEE pioneers and OEE Toolkit expert since 1985 with an office in ‘s-Hertogenbosch (the Netherlands) and international partnerships. Over 150 customers worldwide with more than 4.500 production lines have implemented OEE Toolkit in a wide range of industries.
DataLyzer International founded in 1979 has offices in Eindhoven (the Netherlands), USA and India and offers an integrated quality solution with FMEA, SPC, MSA and CAPA. DataLyzer has more than 4.000 customers worldwide in various industries.
Could you say that below a certain percentage it is better to close the doors of the factory?
No, of course not! Or well, maybe that’s true. Seriously: there is no such thing as ‘an OEE number’, because it could be defined in a thousand different ways. It is generally suggested that a value below 65% should be considered unacceptable. A value between 65 and 75% is considered as regular, between 75 and 85% means acceptable, between 85 and 95 percent is good and a value of above 95% is excellent. But…
Don’t try this at home
First, I will give you an example of how it should not be done. Let’s say, your goal is an OEE of 85%. We change some of the definitions, we lower the maximum speed, exclude some waiting times like breaks and maintenance, stretch the specifications of good product etc. STOP! Of course, it doesn’t work that way. But there are managers (and consultants) out there who earn money in this way.
What is “good”?
Let’s assume we are going to use the OEE industry Standard for all machines. Now, what is a ‘good OEE’ for a machine that continuously runs just one bulk product? And what OEE is ‘good’ for a machine that runs 60 different products a day?
First of all, it makes no sense to focus on the number as such. This is a typical western style of thinking that many managers suffer from. It is a lack of profound systemic knowledge. Instead of looking at a number, you should understand what is really going on.
An example. Let’s take the machine that runs one product all day, feeding a line. Is 95% OK? Not if the downstream equipment would only process the volume of 65%. Would 65% be a good OEE? No, not necessarily! Why not? If the machine jumps back and forth between 45% and 95%, with an average of 65% OEE, it would still cause many problems! Ok, now we have a stable OEE of 65%. Is it now OK? No, not if it runs at a quality rate of 90% (or any other number that is not (near) 100%! What if it is stable at 65% with a quality-rate of 100%? What if we need to make huge and expensive efforts to get this done? Maybe now your costs are so high you are losing money now!
What questions should you ask?
- Is there an OEE level at which the machine runs stable and reliable?
For example, can we run continuously between 40 and 44%? I have rarely seen such machine! It would be an indicator for a process that is – or can be – in control.
- Is there a range of OEE in which we can run a stable OEE?
For example, could we run any desired OEE between 20 and 50% on demand for days? Ever seen that?!
What OEE is desired to fulfil demand, and are we able to run such an OEE on this equipment? Are we able to run the machine without rejects? Are we able to run the machine without any unexpected interruptions? Are we able to swap between one product and the other, the following demand flawlessly? Stop focusing on the height of the number, start focusing on those components that may be indicators for an understood and controlled process. As a result, the number will go up and costs will go down.
Now, this is the reason you may have a need for OEE software that allows you to make exactly such analyses.
How high are OEE numbers normally?
Most machines will not exceed 35 to 45% of OEE (assuming OEE Industry Standard definitions being applied). In some branches, the typical machine runs far less, while in others it can be higher. Some particular types of machines tend to have higher OEE’s by nature and the stage of development of the equipment. After some years of TPM implementations and applying lean principles to prevent the loss of flow, equipment may grow in the 60’s or even 70’s which (as a number) is quite good. But once more: only when at this rate you are fulfilling the demand of the customer! Filling warehouses very effectively mean creating a loss effectively…
Does it mean that the average machine – that is running 35-45% OEE – is running economic losses? Most of them earn quite some money. The conversion cost is not just a small part of the total cost. This explains why such low OEE’s are commonly accepted. The real economic loss is not in the height of the OEE, it is in the lack of flexibility and reliability of it. What would it mean to the cost of the supply chain if every step would respond and follow the demand? Just imagine the economic consequences…
Is it really possible to compare OEE’s of your machines? Or is it like comparing apples with oranges?
To answer this question, I give you an example. Country A has a mobility rate of 18% and Country B 13.5%. You’ll probably conclude that country A does better. Or do they?
The data shows that in country A 40% of the time their cars are running. The average top-speed of their cars is 230 Km/h and on average they are cruising 130 km/h. 80% of the trips go without any problem. So their mobility rate is 40% x 56% x 80% = 18%.
In country B only 15% of the time the cars are running. They have a well-functioning public transportation system. All cars are limited at 100 km/h and on average they are cruising 90 km/h. 99,99% of the trips go without any problems. Their mobility rate is 15% x 90% x 99,99% = 13,5%.
Now… which country is doing better?
This comparison is totally ridiculous of course? And yet, this is what you ask for when you start comparing factories based on OEE… I will show you why you can’t even compare the OEE’s from one machine running the same product in two shifts:
Both the early- and the noon shift runs 46% OEE. Is there a best shift?
- Shift A runs 60% of the time on 80% of the max speed, with 95% quality: 46% OEE
- Shift B runs 80% of the time on 95% speed producing 60% Quality: 46% OEE
So… this comparison is about one and the same machine. What happens when machines are different, and you think about the complexity of the product, the product mix, the lot-sizes…?
OEE as a number cannot be used to compare factories, machines or even shifts.
You will not give up, right? So you ask me what happens if you build in some weighting factors. Well, back to country A and B. In Country A there are 4,8 times more cars than in country B, so what would the weighting factor be? What would be the criteria to define such factor?
Let’s assume we have a factor and as a result country A becomes 17,2% and B 19,3%. What will the management do to improve the results?? And what will be the real effects? It is this kind of ‘management by excel’ that often leads to catastrophic decisions. Before running into a huge pitfall, think:
- What do you really want to achieve?
- How can you really visualize where you are and where you are heading?
- How can you help factories to move in this direction?
My advice when a company starts comparing OEE’s: sell shares!
Before you start with OEE, the following questions should be asked: what is your goal? Which issues do you want to be solved?
Each company is different. Each machine in that business is different. Depending on your local situation, your team will only find what you are willing to look for. The power of OEE software is not determined by the data you collect. What empowers the software is the way these data can be used.
Powerful analyses begin with powerful definitions and configurations. The better you pre-define the data that need to be collected, the better the potential quality of the collected data to do the right loss-analyses later on.We do not believe in masses and masses of data. At FullFact we prefer to register minimal data. However, the data we do collect must make enhanced loss visualisation possible. This is a prerequisite to find your improvement potential!
Total freedom of configuration
Technical Director, Arno Koch, established the OEE Industry Standard in 2001. His primary goal was and still is to visualize ANY loss on ANY machine. This seriously challenges the flexibility in defining loss-registration. The FullFact OEE Toolkit Suite allows total freedom of configuration, supports the OEE Industry Standard, and provides standardisation across machines, departments and plants.
Investment company TIIN Capital invests in FullFact Solutions to enable further international expansion, further development of the OEE Toolkit Suite, new services and the development of innovative Connected Factory concepts.
“We experience an enormous need within national and international manufacturers to improve their productivity, resulting in great traction for our solutions and services. However, the international growth of our company and continuous product improvement required capital”, says Max Marinissen, Managing Director of FullFact Solutions. “We are very happy that TIIN Capital solves this need, and invests in the further expansion of our company, OEE Toolkit Suite and Services.”
“As an investment company, we are always open for interesting growth-opportunities”, says Maarten Derks of TIIN Capital. “Based on a strong international customer base, we are extremely excited about the international potential for OEE Solutions and Services, knowing that OEE Toolkit Suite of FullFact is well positioned to address this market.”
Overall Equipment Effectiveness (OEE) is an OEE is a methodology for operators, mechanics, team leaders, shop floor- and production managers and continuous improvement managers to give focused direction and keep control over productivity-improvement. OEE Toolkit is a market leading solution which makes it exceptionally easy and transparent to detect and visualise losses and to achieve continuous improvements in manufacturing productivity.
About TIIN Capital
Since 1998 TIIN Capital invests in IT- and high tech companies that have excellent growth potential in The Netherlands and want to make a difference by using innovative technologies. TIIN Capital invests through its funds TechFund, TIIN TechFund 2, TIIN TechFund 3, TIIN Buy-out & Growth Fund and TIIN Next Phase Fund. A new investment fund that will aim at innovative growth companies will be launched early 2018 and is still open to new investors. TIIN Capital has € 60 million under management and has a network of 1.000 informal investors.