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Top 10 Strategies to Improve OEE in Your Manufacturing Process

To improve OEE means to significantly enhance your factory’s productivity, improve product quality and reduce costs. Overall Equipment Effectiveness (OEE) is a crucial metric for manufacturing efficiency, encompassing Availability, Performance and of course, Quality. This article explores the top 10 strategies to improve OEE, complete with practical tips and real-life examples.

Table of Contents

  1. Identifying and Addressing the Six Big Losses

  2. Implementing Predictive Maintenance

  3. Utilising Real-Time Data and Analytics

  4. Enhancing Operator Performance

  5. Leveraging IoT and Automation

  6. Standardising Work Procedures

  7. Improving Changeover Processes

  8. Conducting Regular Training and Workshops

  9. Optimising Inventory Management

  10. Case Studies and Real-Life Examples

  11. Summary of how to improve OEE

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1. Identifying and Addressing the Six Big Losses

We have talked about this more in our previous articles about understanding the Six Big Losses in Manufacturing. These losses are major factors that negatively impact OEE: Equipment Failures, Setup and Adjustments, Idling and Minor Stops, Reduced Speed, Process Defects, and Reduced Yield. Without tackling them with proper hardware sensors that send and combine real-time data into useful information you are surely losing money day in day out. So what are the Six Big Losses?

Equipment Failures

Equipment failures, also known as breakdowns, occur when machinery stops functioning unexpectedly, leading to significant downtime. These failures can be minimised through regular maintenance and timely repairs. Plan ahead. Most factories skip this and think they can still perform. But you have to be willing to do maintenance as planned. It is called predictive maintenance for a reason.

Setup and Adjustments

Setup and adjustments refer to the time spent preparing machines for production, including changeovers and adjustments for different products. Streamlining these processes through standardisation can significantly reduce downtime.

Idling and Minor Stops

Idling and minor stops occur when machines temporarily stop working due to minor issues such as jams or misfeeds. Addressing these issues promptly and ensuring operators are trained to handle them can reduce these interruptions.

Reduced Speed

Reduced speed happens when machinery operates below its optimal speed, often due to wear and tear or suboptimal settings. Regular calibration and maintenance can help maintain optimal operating speeds. But again - you have to be willing to stop the factory or a part of the factory to do that. You will benefit from it more than unforseen breakdowns that may shut down your factory for much longer than it takes to do planned maintenance.

Process Defects

Process defects result in products that do not meet quality standards, leading to rework or scrap. Implementing quality control measures and continuous monitoring can help reduce defect rates.

Reduced Yield

Reduced yield occurs when the production process results in fewer good parts than expected, often due to startup losses or incorrect machine settings. Optimising startup procedures and ensuring correct settings can improve yield.

  • Strategy: Conduct regular audits to identify these losses and implement corrective actions.

  • Example: A food processing plant reduced equipment failures by 20% by introducing a preventive maintenance schedule. Also check out our Case Study in metal industry.

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2. Implementing Predictive Maintenance

Predictive maintenance uses data analytics to predict equipment failures before they occur, enabling proactive maintenance and significantly reducing unexpected downtime. Here’s how to implement predictive maintenance effectively:

Strategy:

  • Install Sensors: Equip your machinery with sensors to monitor various parameters such as vibration, temperature, and performance.

  • Use Predictive Algorithms: Leverage predictive algorithms to analyze the data collected by the sensors. These algorithms can forecast potential failures and schedule maintenance activities accordingly.

Example: An automotive manufacturer implemented predictive maintenance and reduced unexpected downtime by 25%, leading to a 15% increase in OEE. This was achieved by installing sensors on critical machinery and using advanced analytics to predict and prevent failures before they occurred.

How GlobalReader Enhances Predictive Maintenance: GlobalReader offers a comprehensive maintenance management solution designed to streamline and optimise maintenance tasks. Key features include:

  • Automated Maintenance Planning: Create daily and weekly work plans for users and equipment, optimising workloads and ensuring that critical tasks are prioritised.

  • Real-Time Monitoring and Notifications: Receive real-time updates and notifications for overdue tasks via email or SMS, enabling quick responses to potential issues.

  • Comprehensive Spare Parts Management: Track spare parts inventory levels, automate reorder alerts, and ensure that you always have the necessary parts on hand to avoid delays.

  • Electronic Work Log: Maintain a detailed electronic logbook for every device, recording maintenance activities with dates and signatures to ensure accountability and traceability.

By integrating these features, GlobalReader allows manufacturers to implement predictive maintenance effectively, thereby minimising downtime, extending equipment lifespan, and improving overall equipment effectiveness (OEE)​.



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3. Utilising Real-Time Data and Analytics

Real-time data and analytics are crucial for maximising Overall Equipment Effectiveness (OEE) by providing immediate insights into production performance and equipment status. Here's how to utilise real-time data and analytics effectively:

Strategy:

  • Continuous Monitoring: Implement systems that provide continuous monitoring of key metrics such as machine availability, performance, and quality. Real-time data helps in identifying and addressing issues promptly, preventing minor problems from escalating into major disruptions.

  • Data Analytics Tools: Use advanced data analytics tools to process and analyse the data collected. These tools can detect patterns, identify bottlenecks, and suggest improvements to optimise production processes.

Example: A textile company improved its OEE by 18% by implementing a real-time tracking system to monitor machine performance and address issues promptly. By utilising real-time data, the company was able to reduce downtime and improve overall production efficiency.

How GlobalReader Enhances Real-Time Data and Analytics

GlobalReader offers robust solutions for real-time monitoring and data analytics, providing manufacturers with the tools they need to enhance their OEE:

  • Real-Time Factory Tracker: GlobalReader’s real-time factory tracker gives a comprehensive view of production capacity, machine performance, and product quality. This tool enables manufacturers to identify bottlenecks and take immediate action to resolve them GlobalReader.

  • Customizable Reports and Dashboards: With GlobalReader, you can create customizable reports and dashboards that visualise data trends and patterns, making it easier to make informed decisions. These insights help in optimising production processes and improving efficiency GlobalReader Analytics.

  • Seamless Integration with ERP Systems: GlobalReader seamlessly integrates with your existing ERP systems, providing a unified platform for data collection and analysis. This integration ensures that all relevant data is easily accessible and actionable GlobalReader.

By leveraging GlobalReader’s real-time data and analytics tools, manufacturers can continuously monitor their production processes, quickly respond to issues, and implement strategies to improve OEE. This proactive approach leads to more efficient operations, reduced downtime, and higher overall productivity.

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4. Enhancing Operator Performance

Operators play a critical role in maintaining and improving Overall Equipment Effectiveness (OEE). Ensuring that operators are well-trained and receive real-time performance feedback is essential for optimising their efficiency and reducing errors.

Strategy:

  • Regular Training Programs: Implement comprehensive training programs to enhance operator skills and knowledge. Focus on best practices, equipment handling, and troubleshooting techniques.

  • Real-Time Performance Feedback: Provide operators with real-time feedback on their performance. Use dashboards and alerts to keep them informed about their efficiency and areas needing improvement.

Example: A packaging company increased its OEE by 10% after introducing a training program that enhanced operator skills and knowledge. The program focused on proper equipment use and maintenance, leading to fewer errors and downtime.

How GlobalReader Enhances Operator Performance: GlobalReader offers several features designed to improve operator performance and overall productivity:

How do we at Globalreader enhance Operator Performance?

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By leveraging these features, GlobalReader ensures that operators are equipped with the knowledge and tools they need to perform at their best. Continuous training and real-time feedback help in maintaining high standards of operation, leading to significant improvements in OEE and overall manufacturing efficiency.

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5. Leveraging IoT and Automation

IoT and automation technologies can significantly boost Overall Equipment Effectiveness (OEE) by enhancing efficiency and reducing human error. Integrating IoT devices and automation systems into your manufacturing processes provides real-time data, optimises workflows, and ensures consistent quality.

Strategy:

  • Integrate IoT Devices: Install IoT sensors on machinery to collect data on various parameters such as temperature, vibration, and performance. This data is crucial for real-time monitoring and predictive maintenance.

  • Automate Repetitive Tasks: Use automation systems, such as robotic arms and automated conveyors, to handle repetitive and labor-intensive tasks. Automation reduces human error, speeds up production, and frees operators to focus on more complex activities. 

Example: A beverage company improved its OEE by 22% by automating repetitive tasks and using IoT for real-time monitoring. The integration of these technologies enabled the company to quickly identify and address inefficiencies, ensuring smoother operations and higher productivity.

How GlobalReader Enhances IoT and Automation: GlobalReader offers comprehensive solutions that leverage IoT and automation to enhance manufacturing efficiency:

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6. Standardising Operating Procedures

Standardising operating procedures is essential for ensuring consistency and reducing variability in production processes. By developing and implementing standardised operating procedures (SOPs) for all critical tasks, manufacturers can ensure that every operation is performed uniformly, leading to predictable and reliable outcomes. This consistency helps maintain product quality, reduce errors, and minimise downtime caused by rework or adjustments. SOPs provide clear instructions and guidelines for operators, reducing the learning curve and ensuring that even new employees can quickly become proficient. Additionally, standardised procedures make it easier to identify and rectify process inefficiencies, as deviations from the norm are quickly apparent.

An electronics manufacturer saw a 15% improvement in OEE by standardising their assembly line processes. By implementing SOPs, they ensured that every task was performed the same way every time, which reduced variability and enhanced efficiency. This approach also facilitated better training and onboarding processes, as new employees could follow the documented procedures and quickly reach the required performance levels. Furthermore, standardised procedures enabled the manufacturer to implement continuous improvement initiatives more effectively, as they could easily measure the impact of changes and optimise processes based on data-driven insights. Adopting SOPs across the manufacturing operation ensures that best practices are followed consistently, leading to sustained improvements in OEE and overall operational performance.

  • Strategy: Develop and implement standardised operating procedures for all critical tasks. 

  • Example: An electronics manufacturer saw a 15% improvement in OEE by standardising their assembly line processes. 

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7. Improving Changeover Processes

Efficient changeover processes reduce downtime and increase machine availability. We at GlobalReader understand that implementing such a significant change can be challenging. It requires careful planning, training, and a commitment to continuous improvement. 

However, with our expertise and support, we can guide you through this process. Initially, it may be difficult, but as you and your team become more familiar with the new procedures, changeovers will become simpler and more efficient. Our tools and insights will help you make this transition smoother, ultimately leading to greater efficiency and higher OEE. 

Efficient changeover processes reduce downtime and increase machine availability. Implementing the SMED (Single-Minute Exchange of Dies) method is a proven strategy to streamline changeovers. This method focuses on converting internal setup tasks (performed while the machine is stopped) to external tasks (performed while the machine is running), significantly reducing the overall changeover time.

  • Strategy: Use the SMED (Single-Minute Exchange of Dies) method to streamline changeovers.

  • Example: A plastic injection moulding company reduced changeover time by 50% using SMED, resulting in a 12% increase in OEE.

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8. Conducting Regular Training and Workshops

Continuous training ensures that all employees are up-to-date with the latest best practices and technologies. Regular training sessions and workshops focused on Overall Equipment Effectiveness (OEE) improvement are essential for maintaining high operational standards and efficiency.

Strategy:

  • Schedule Regular Training Sessions and Workshops: Organise quarterly workshops and training sessions that focus on OEE improvement techniques, such as lean manufacturing, predictive maintenance, and equipment handling.

Example: A pharmaceutical company improved its OEE by 14% by holding quarterly workshops on lean manufacturing techniques. These sessions provided employees with updated knowledge and skills, leading to better performance and fewer errors.

How GlobalReader Can Help: GlobalReader supports manufacturers in organising and executing effective training programs. By using our comprehensive training and performance tracking features, you can ensure your workforce stays informed and proficient, ultimately enhancing your OEE.

Visual Representation:

Implementing regular training and workshops helps keep your team engaged and knowledgeable, leading to continuous improvement in your manufacturing processes and overall efficiency.

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9. Optimising Inventory Management

Efficient inventory management is crucial for ensuring that materials are available when needed, thus reducing downtime and improving Overall Equipment Effectiveness (OEE). By adopting just-in-time inventory practices and using advanced inventory management software, manufacturers can streamline their operations, reduce excess inventory, and prevent material shortages.

Strategy:

  • Implement Just-in-Time Inventory Practices: This strategy ensures that materials are ordered and received just as they are needed in the production process, minimising inventory holding costs and reducing waste.

  • Use Inventory Management Software: Leveraging software to track inventory levels, manage reorder points, and predict material requirements helps in maintaining optimal inventory levels and reducing the risk of shortages.

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10. Case Studies and Real-Life Examples

Real-life examples and case studies provide practical insights into how OEE improvement strategies can be effectively implemented and the tangible benefits they offer. These examples demonstrate the impact of specific strategies on manufacturing efficiency and performance. 

Take a look at this GlobalReader case study of Avoti's Journey to Manufacturing Efficiency with GlobalReader and Monitor ERP G5

Avoti desired to improve transparency and efficiency in their manufacturing processes. Furthermore, standardise and unify production statistics across their factory. The integration project was approached in stages, starting with the simplest processes and gradually moving to more complex ones. This strategy allowed both Avoti and GlobalReader to understand the data flow and optimise the integration.

This notable case study involves Monitor ERP G5, which significantly enhanced their manufacturing operations with GlobalReader's solutions. By integrating GlobalReader's real-time data tracking and analytics tools, Monitor ERP G5 was able to streamline their processes, reduce downtime, and improve their OEE.

After implementing GlobalReader’s solutions to monitor their production in real-time, this integration allowed them to identify bottlenecks, optimise machine performance, and maintain consistent production quality. As a result, Monitor ERP G5 saw a significant improvement in their operational efficiency and overall equipment effectiveness.

For a detailed overview of this success story, visit the full case study: Monitor ERP G5 Case Study.

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Summary on why you have to improve OEE

It is essential to improve OEE for manufacturing efficiency and profitability. By implementing these top 10 strategies, manufacturers can identify inefficiencies, reduce downtime, and enhance overall productivity. Start implementing these strategies today to see a marked improvement in your OEE and operational performance. Give us a call or fill out this form and we will set up a meeting to show you how we truly believe in your success and love to help your business grow.

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