OEE and why do we need to monitor it in real-time?

Updated: Jan 7, 2020

"OEE is the single best metric for identifying losses, benchmarking progress, and improving the productivity of manufacturing equipment (i.e., eliminating waste)" - "Overall equipment effectiveness is most often seen as a tool for use in production operations. However, it is increasingly viewed as a strategic management tool for continuous improvement and connecting the enterprise to the plant floor."- How many manufacturers meet their production schedule on a regular basis? Many of their lines are only 60% productive. The problem begins with the planning as they are not based on real-time and accurate forecasting. An OEE monitoring system can fix this gap as it provides real-time data to make an accurate forecast paving a way better production planning. "An OEE score of 100% means you are manufacturing only Good Parts, as fast as possible, with no Stop Time". With real-time data available, manufacturers can detect the problematic areas and can decide which aspect of their production needs to be improved. It includes increasing overtime, adding shifts, acquiring new equipment. With such monitoring system, production data can be shared with supply chain partners and the best delivery cycle time can be determined. Procurement managers and suppliers can also use this information to monitor any delays or stops in the events so that they adjust raw material needs accordingly. Sales team needs to know that the shop floor can deliver as their promise to the buyers. With real-time monitoring now it's possible to know if a certain level of production can be met or if it will be profitable. Based on sales projections, process improvements can be prioritized. Finance manager can get hold of this production data from OEE monitoring to find out which equipment needs upgrade and is giving the best ROI of an operation based on rates, up-time, output, performance and time used. Many possibilities and opportunities can open up if you start monitoring OEE in real-time but also that being said it needs to be designed in such a way that it's intuitive, easy to understand, convenient and deploy-able in an all-in-one platform with minimum complexity. Dynamics Motion is coming up with such a platform very soon. Great things take some time to build. Stay tuned! Feel free to ask any questions at:

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