Overall Equipment Effectiveness (OEE) is a ratio of the actual output over the figure it could be theoretically, and is calculated by a multiple of three components, all of which relate to actual versus theoretical values; availability, performance and quality (Lannone and Nenni, 2013). Another relevant interpretation of the acronym OEE was devised by Vijayakumar and Gajendran (2014, p. 47), providing three principles for maximising the OEE value, where O represents its objective of accomplishing organisational goal(s), E is the efficiency resulting from doing things right, and E for effectiveness which is a consequence of doing the right thing.
The major purpose of OEE is used to improve overall manufacturing production performance. The measurement demonstrates how well the production process matches the planned process, its value is reliant on the multiple of the three components, availability, performance and quality but industry average values are well below the 100% figure. In reality world class performance is regarded as and OEE value equivalent to 85%, however, in most cases the actual figure is much lower, between 60% and 70% (Lannone and Nenni, 2013). Automotive manufacturers who are able to reduce the length of manufacturing processes by as little as a few seconds can leverage productivity by one or two extra vehicles a day, generating additional revenue in the long term (Montpass, 2014).
Hence in this presentation the reasons for the gap are appraised, particularly in relation to automotive manufacturing. Initially an overview of each of the components and the factors that most negatively impact on the OEE value are provided, followed by the most up to date interventions that are being employed to improve OEE. In an industry in which consumption is declining (Marketline, 2015) and competition for sales increasingly fierce, the OEE value is vital to productivity and competitive advantage.
Table of Contents
1. Introduction
2. The Reasons for Low OEE Values
3. Interventions to Improve OEE
3.1 Industrial Internet
3.2 Cloud and SaaS Solutions
4. Conclusion
Research Objectives and Key Topics
This study examines the factors contributing to sub-optimal Overall Equipment Effectiveness (OEE) values within the automotive manufacturing sector and explores how modern technological interventions can improve production performance and competitive advantage.
- Analysis of the components and primary causes of OEE losses.
- Evaluation of the Industrial Internet as a tool for real-time monitoring and operational efficiency.
- Assessment of the role of Cloud and SaaS solutions in enhancing supply chain communication and agility.
- Review of management and workforce training strategies to reduce human-based downtime.
Excerpt from the Publication
Industrial Internet
The use of the industrial internet is promoted as a solution to the issues related to OEE for production lines cited earlier. Industrial internet is a concept that combines the manufacturing the information ages, in other words merging the machines and transport of the industrial revolution with those of the internet revolution, comprising computing, information and communication, figure 1. The fusion of technologies is exploited to provide intelligent machines, powerful analytics that can be monitored and analysed to drive up understanding of issues or reveal trends and people who are involved in both the design, and optimisation of characteristics of the first two elements (Evans and Annuziata, 2012).
Real time data can be gathered from machines, which have intelligent devices integrated, and the enormous quantities of data produced by the intelligent machines is then analysed by the deep analytics support. Hence engineers can make more sense of the data to gain much greater understanding of how the machines operate, and then make changes in design that drive up availability and performance (Evans and Annunziata (2012). Intelligent systems are characterised by three types of optimisation potential: networking to accomplish greater coordination, efficient maintenance, and learning. If machines are networked, these can be coordinated so that operational efficiencies can be exploited (Evans and Annunziata, 2008), for instance in the supply chain, since by improving the connectivity of machines to work in sequence, results in OEE gains relating to the finished products or to the transportation of inputs and outputs (Porter, 2008).
Summary of Chapters
Introduction: Defines OEE and its core components, highlighting the industry gap between current performance and theoretical world-class standards.
The Reasons for Low OEE Values: Identifies the six main factors causing downtime and production losses, emphasizing how availability and performance metrics impact the 85% world-class benchmark.
Interventions to Improve OEE: Discusses the shift from single-machine metrics to production line analysis and introduces the Industrial Internet and Cloud/SaaS solutions as transformative technologies.
Conclusion: Synthesizes the findings, concluding that integrating industrial internet and SaaS strategies is essential for automotive manufacturers to gain a competitive advantage.
Keywords
Overall Equipment Effectiveness, OEE, Manufacturing, Automotive Industry, Industrial Internet, Cloud Solutions, SaaS, Production Efficiency, Operational Performance, Supply Chain, Data Analytics, Downtime, Machine Reliability.
Frequently Asked Questions
What is the core subject of this paper?
The paper focuses on Overall Equipment Effectiveness (OEE) in the automotive industry, exploring why many manufacturers struggle to reach world-class efficiency levels and how modern technology can bridge this gap.
What are the primary themes discussed?
The study covers the components of OEE (availability, performance, quality), the causes of production losses, and the implementation of Industrial Internet and SaaS solutions to optimize manufacturing processes.
What is the main goal of the research?
The goal is to appraise the reasons for OEE gaps and demonstrate how digital interventions can improve productivity, reduce costs, and provide a competitive advantage.
Which scientific methods are applied?
The research is based on a review and analysis of current industry literature, academic definitions, and case-based studies regarding manufacturing optimization and digital technologies.
What topics are covered in the main body?
The main body examines the factors behind low OEE values, the limitations of traditional measurement methods, the integration of intelligent machines via the Industrial Internet, and the benefits of cloud-based software services.
Which keywords best describe this research?
Key terms include OEE, manufacturing optimization, industrial internet, SaaS, automotive production, and performance management.
How does the Industrial Internet improve machine coordination?
By networking machines and utilizing advanced analytics, companies can gain a holistic view of the entire production population, allowing for better coordination, predictive maintenance, and faster recovery from unexpected incidents.
What role does SaaS play in the supply chain?
SaaS facilitates a faster exchange of information between all suppliers in the supply chain and allows for automatic software updates, which speeds up new product launches and enhances operational control.
Why is employee training mentioned as a critical factor?
Many OEE losses are worker-based; providing training and information to operators during production halts can significantly reduce downtime and improve overall plant efficiency.
- Arbeit zitieren
- Dipl.-Ing. Martin Greiner (Autor:in), 2015, Overall Equipment Effectiveness (OEE). Approaches for Improvement, München, GRIN Verlag, https://www.grin.com/document/311310
