AboutAaron Overbeek Expertise I am a Six Sigma Master Black Belt and Lean Champion. My expertise ranges from tacticle (local) implementation to strategic (global) implementation of Lean Six Sigma. Also knowledgable in Best Manufacturing Practices, Quality, Supply Chain, Engineering, and EH&S. I am not a consultant and do not mind follow up questions.
Experience Bachelors of Science in Manufacturing Engineering from the University of Michigan. Lean Champion and Six Sigma Master Black Belt. Member of the American Society of Safety Engineers, Society of Manufacturing Engineers, and ISO audetation.
Director of Operational Excellence and Strategic Sourcing for multi-billion dollar corporation.
Expert: Aaron Overbeek Date: 5/16/2008 Subject: Real Time OEE
Question Is it worth while to have real time OEE Monitoring System to evaluate performance?
Answer Tracking real time OEE is a critical part of how you understand your current process capability. OEE gives you insight to production scheduling (a lower OEE percentage makes you have to plan for overtime, scrap, and rework), maintenance costs, and on-time delivery. Remember that the generic metric of on-time delivery is a misleading figure. You can have 100% on-time delivery, but if your machinery's OEE is 75%, you are pushing more resources (labor head count, overtime, etc...) at the overall process to achieve your on-time delivery stat. If you track metrics like OEE throughout your plant's Value Streams or Work Cells, and keep it around 100%, you can assume that your on-time delivery (with no additional, or hidden resources) will reflect the OEE metrics.
It is also important if the machine you are measuring OEE is a critical "Shared Resource" in a Value Stream. You will need to create production buffers (inventory) to compensate for your machine's lack of operating efficiency. Your Every Part Every Interval time will increase which leads to longer inventory turns (which decreases working capital).
If nothing else, OEE will tell you the capability of your machinery and the ability to adjust to a spike in customer demand. If your OEE is 100%, yet you are still unable to meet takt time, then you might have to look at aquiring a newer machine that has the increased capabilities your business needs.
