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Overall Equipment Effectiveness (OEE)


The metrics for Overall Equipment Effectiveness (OEE) were developed in the 1960s; however, OEE is still a popular means of analysis among executives and quality control professionals today. OEE is a key performance indicator that is becoming the food industry's standard for comparing plants and evaluating their success. Sample calculation of OEE:

OEE = 86% (Availability) x 94% (Performance) x 95% (Quality) = 76.8%
Availability Performance Quality
Downtime
Accidents
Changeover
Operator Error
Improper Equipment Service
Environmental Conditions
Product Characteristics
Operator Error
Improper Equipment Service
Environmental Conditions
Operator Error

The state of the current U.S. economy and the rising cost of feed have forced companies to investigate how to garner more from their current equipment and processes. "Many businesses invest money that they cannot afford, to supplement capacity that they already have." (Philip Godfrey, "Performance Measurement: Overall Equipment Effectiveness," Manufacturing Engineer, June, 2002, 109.)

The following problems must be solved efficiently and effectively to maximize OEE:

  • Excessive Downtime
  • Slow Line Speeds / Production Rates
  • Inadequate Quality Control / Assurance
  • High Scrap Rate / Waste Generation

CAT² offers the only complete OEE software solution custom designed & developed for the food industry. CAT²'s OEE add-on tool for the Food Safety and Quality Management Tool (HAT) software suite allows companies to monitor their OEE in real-time, giving administrators and managers detailed insight into the most effective ways to reduce cost and increase profits. One CAT² client was able to get a 100% RETURN ON INVESTMENT IN ONLY 3 MONTHS after HAT OEE went live in their plant! Every installation is unique, so not everyone will see ROI this quickly, but we would welcome the opportunity to provide you with a free plant/process evaluation to find out the potential savings for your company.

Please contact Mark Wilson at 501-328-9178 x318 or Mark.Wilson@CATSquared.com if you would like more information on this solution or to schedule a free plant evaluation to see how CAT² HAT and OEE solutions can benefit your company.

We have created an OEE in the Food Industry group on LinkedIn.com. Click the link to join the group and participate in discussions about OEE with other professionals in the Food Industry. Everyone that joins the group gets exclusive access to our OEE RFP Checklist document.