OEE Software Myths Exploded

OEE MythsIn the tough economic climate that still prevails in the manufacturing arena, all forward looking companies are examining ways of cutting costs without cutting output. Making efficiencies in the production cycle is the key, and this is where Idhammar’s specialised OEE software  can be of significant benefit.

Whilst OEE (Overall Equipment Effectiveness) software has already helped many companies to deliver excellent savings, there are still many sceptics who throw up a barrage of objections in an effort to forestall implementing an OEE system,  such objections are not only ill founded, but are quite frankly, misleading.

Myth 1 – OEE isn’t Applicable to a Particular Industry

One of the most common responses by those opposed to implementing an OEE system is that it is not appropriate to their particular niche industry. But in truth, this fear is not only born through ignorance; it is totally incorrect.

In reality, OEE is a tool that has been specifically designed to analyse any production cycle. It doesn’t matter if said cycle is in the heavy engineering industry, or the FMCG industry; whatever industry the production cycle is in, an OEE system can examine it, analyse it, and provide the necessary information to improve upon it.

Myth 2 – Inefficiencies are Caused by Someone Else

Many companies harbour an internal blame culture, whereby one department places the blame for system downtime, or poor performance results, on another department. These internal politics are no more than self preservation, and self protection mechanisms. But the ultimate truth is that they are harmful, not only to the business, (because inefficiencies are being swept under the carpet), but also to the employees; the very people who may be responsible for burying the information.

Myth 3 – Our Company has No Inefficiencies

An OEE system is of course totally apolitical. It reports on fact, and only fact. Wherever an inefficiency occurs in the production cycle, be it a material shortage, and material specification problem, a piece of faulty equipment, or even an operator error, an OEE program will clearly and impartially identify where the inefficiency has occurred.

With an OEE system, there is no internal wrangling to try to “pass the buck”, or conceal the truth. By bringing the facts to the table for open debate, this enables corrective action to be made which protect the business’s bottom line, and therefore the security of the employees’ positions too.

Myth 4– My Business Uses Special Measurements OEE Cannot Duplicate

Some Production Managers claim that they have developed their own specialised measurements that an OEE system cannot duplicate. Somewhat cynically, these measurements are often set to trigger bonus payments, and are somehow always reached week in, and week out. In truth these measurements are “massaged” to show the right figures have been met. The result is that the companies’ costs are made artificially high through this “massaging”.

An OEE system will of course still allow the bonus trigger point to be reached, but it is based on accurate measurements, which means that costs are only increased in proportion to increased output. Both employer and employee gain.

Improving the Return on Investment (ROI)

An important measurement to most businesses is their ROI. An improvement in ROI signals that the plant and equipment is being used in increasingly efficient ways. This is the main strength of a good OEE system. It helps to bring about the conditions where improvements are made to the existing plant and production cycle, by implementing lean essentials without any additional expenditure. Increasing turnover and reducing costs is every manufacturer’s dream. The OEE programs available through Idhammar Systems help to turn this dream into a reality!

Read the other instalments of our OEE Myths Exploded series: Part 2    Part 3    Part 4

Contact us today to discover how Idhammar’s OEE software can be the lean toolkit your company is looking for.