Overall Equipment Effectiveness (OEE) is a metric that identifies the percentage of predicted production time that is truly productive. A 100% OEE score represents the perfect production: only good objects produced, as fast as possible, with no downtime.

Tips for Reducing Operating Costs

Regardless of its size or area of ​​operation, reducing operating costs is one of the most important factors for a company's long-term success. And, as staying competitive in a highly disputed market is a prerequisite for any business, it becomes essential to reduce expenses and offer customers a product with the lowest possible cost as long as maintaining quality.

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Tips to Get the Most Out of OEE

The OEE performance indicator works particularly well for discrete manufacturing processes where it is used to measure equipment performance. Stopping, product switching and setup should be included in the planned production time (and therefore as part of the OEE calculation). In general, if time can be used for the production of added value it should be included in the OEE. This helps ensure that all losses are monitored and that the true capacity of the equipment is being considered.

Brazil Kirin Invests in Operational Efficiency and Saves 19% Water and 21% Fuel

Eight years ago, Brazilian beverage maker Kirin - then Schincariol - decided that it would be important to increase the efficiency of its 13 factories. In them, among other problems, wasted water, about 30,000 products exited from faulty factories a year and dozens of employees were involved in accidents.

How to Apply Alternative Indicators to OEE in One Factory's Global Performance Management?

Although the measurement of Overall Equipment Effectiveness (OEE) is an increasingly widespread industrial management practice, alternative indicators have been proposed in the literature to address performance measurement at a more global level of production systems. These indicators reveal a series of possibilities of application in the search of an effective use of the production capacity.