Using the Power of OEE to Improve Competitiveness and Profits

Smith&NephewThe power of OEE improves competitiveness in any manufacturing business, creating a better ROI and producing increased profitability. Idhammar Systems, one of the UK and Europe’s top OEE service providers has already helped numerous manufacturing companies to substantially lower their operating costs and significantly improve productivity. This is no empty claim. It is backed up by many successful projects. Take Smith and Nephew, for example.

The Smith and Nephew Challenge
Smith and Nephew is one of the world’s best known manufacturers. The company operates within the health product industry, manufacturing wound dressings. Based here in the UK in Hull, it already invokes lean principles within its operation, and is acknowledged to be an efficient manufacturer. But even this company is subject to the pressures of global competition. How, you may wonder, would an already lean, efficient operation meet this challenge? Having been told by Idhammar that the power of OEE improves competiveness and profits in any manufacturing business, Smith and Nephew commissioned Idhammar to substantiate the claims.

Can OEE Improve an Already Lean Environment?
Before employing the services of Idhammar’s OEE systems, Smith and Nephew’s production management team used manually operated spreadsheets to monitor productivity. They had worked up to a point, but going beyond that point proved a bridge too far. Idhammar were instructed to install its best in class OEE software, to run with and monitor S & N’s fully automated production process. The gauntlet had been thrown down, and Idhammar had the opportunity to prove that the power of OEE improves competitiveness, even in an environment that is already run on lean principles.

What Makes Idhammar’s OEE Software Stand Out from the Competition?
It was a tough task. Smith and Nephew had just finished investing £40 million in modernising its plant. But Idhammar’s OEE software was chosen specifically because of its rich, comprehensive functionality. It’s the one thing that makes Idhammar’s OEE software stand apart from their competitors, and S & N recognised that it needed something special in order to get the very best out of its newly updated plant.

Softly, Softly Catchee Monkey   
Naturally, Smith and Nephew wanted to tread carefully at the outset. It couldn’t take what it saw as a potential risk to the already efficient production process. Therefore, the company had the software installed on just 30 of the machines. But within nine months of installation, the substantial performance improvement was there for all to see.

The OEE Measure
Productivity can be gauged by the OEE measure. It is the lowering of the OEE measure that illustrates the power of OEE to improve competitiveness, even before it hits the bottom line. The nine-month trial showed a 10% improvement in the OEE score. To put this into perspective, a 1% change can equate to hundreds of thousands of pounds worth of cost savings.

The Proof of The Pudding
Following this successful trial, Smith and Nephew now plans to extend the OEE software installation throughout the plant.

Read the Smith & Nephew case study here.

For more information on how you can become another OEE success story, contact us today on 01179 209400.