12 Oct OEE Benchmarking
Benchmarking is the method that we all tend to use when looking to gauge our progress, or measure the standard we have achieved in whatever it is we are doing. It hardly surprising therefore that companies that use OEE (Overall Equipment Effectiveness) software, should also look to this method of monitoring.
In general, manufacturing businesses seem to have adopted the figure of 85% as being the OEE score that represents what is known as “World Class”. But in actual fact, when you drill down and start to separate the various manufacturing niches, you’ll find that it’s quite a different story. Take a brief look at the following illustration.
- Chemical Plant adopted world class – 97% OEE rating
- Flour Mill adopted world class – 96% OEE rating
- Steel Smelting Plant – 90% OEE rating
- Machining Factory – 85% OEE rating
- Bottling Plant – 80% OEE rating
- Automotive Plant – 75% OEE rating
- Packing Process Line – 75% OEE rating.
There’s a wide variation from industry to industry. Whilst it’s good to be able to get a handle on your progress down the road of continuous improvement, you mustn’t get too hung up about the actual benchmark figure for your industry. The plain truth of the matter is that not only is every manufacturing process different, but every industry is unique to itself, as indeed is every company. Let’s take a quick look at the variables:
- There are different end products
- There are different production processes.
- Every factory is different
- Plant and equipment varies from company to company
- The age of plant and equipment varies
- The number and the quality of staff varies
- Raw material quality varies.
All of these things will have an impact on the efficiency of any given production process. Therefore not only is it not possible to have one standard benchmark across manufacturing as a whole, but it’s unlikely to have one in the same manufacturing niche. But that’s not to say we shouldn’t benchmark. It simply means that we shouldn’t become too fixated on it. What OEE benchmarking does, is to help you to monitor and maintain the progress on your journey as you move towards leaner manufacturing.
- OEE is an enabler
- It enables lean manufacturing
- It is a way of measuring the efficiency of the production process
- OEE benchmarking facilitates the measurement of progress
- Management begins with measurement.
In today’s tough economic environment, OEE acts as a tool to drive lean manufacturing. The leaner the process, the more money a company will make. But the exciting thing about OEE software is that once installed, it goes about providing the means for continuous improvement, (for reducing costs), without necessitating any additional expenditure.
So what are the likely OEE improvements you could make with OEE Software? See the expected OEE Improvements you could gain in 12 months.
Developing the culture of continuous improvement inside any company is not only desirable, it is essential if that company is to survive. OEE and OEE benchmarking is not just the survival kit, it is the champion of change. Contact us today and enquire about OEE in your business, and start your lean journey.