OEE – Stabilizing Supply Chain Performance and Activating “Hidden Reserves”

The deployment of available resources can be steered most efficiently when the machines can be run at a stable rate with high output. Due to complex products and supply chains, this is not always easy to achieve. In order to improve cost degression the actual production time of the equipment should be as high as possible and the quality requirements should be fulfilled to 100% most of the time. These requirements mean that production managers face very specific challenges all the time.

To clearly identify the causes of variances in availability, productivity or quality and thus increase cost efficiency, as well as to unveil hidden reserves in the bottleneck, B&C employs the OEE („Overall Equipment Effectiveness“) approach. In this approach, B&C uses intelligent BI tools, to allow standardized and structured processing of as much production data as possible. This creates the necessary transparency to localize the causes of efficiency losses and to quickly develop and test approaches to systematic optimization.

Advantage of OEE compared to classical Operational Measurement Parameters

In many companies of metal industry the operational capacity is still primarily measured by tonnage produced or cost per ton. These are indisputably necessary measurement parameters, but they are insufficient to allow identification of improvement potential. The GAE indicator therefore comprises of three factors: [Availability * Performance * Quality]

This aggregated performance indicator provides holistic transparency over equipment performance and allows a quick overview of where effi ciency losses occur.

The OEE Project – more than a new KPI

In our projects we often implement OEE with our own OEE toolbox, a sophisticated BI solution, with which we are quickly able to create transparency and identify potential for improvement. Besides the development of approaches to stabilize production processes and increase equipment effectiveness respectively, the transfer of OEE measurement and optimization in daily operations is a core part of an OEE project. Thus, the continuous deployment of an OEE­Management increases sustainably equipment effectiveness and improves the entire supply chain regarding service level and profitability.

„OEE has helped us to stabilize our production plan due to improved transparency. Also, we have managed to synchronize the interaction of all machines with adjacent activities in the whole plant. Through this, a higher throughput has helped us generate additional margin for the company, without the need for further investment.“

Alfred Weiß, Operational Manager Hot Mill and Finishing at Georgsmarienhütte GmbH