In our previous Actionable Insights blog, we looked at the various predefined Action Centers made available by role, starting with the Chief Financial Officer (CFO) Action Center. Next we will provide an overview of the Overall Equipment Effectiveness (OEE) Action Center and the associated key performance indicators (KPIs).
OEE Action Center Overview
Managing operational effectiveness is at the heart of manufacturing management, and especially for asset intensive industries, no metrics are more important than OEE. Because of its importance, QAD provides multiple ways to analyze and view OEE results, all accessible from the Action Centers and dashboards menu. This blog focuses on site level analysis, while future blogs will drill down into production lines, work centers and departments, among other selections. The site level OEE Action Center includes 10 measurements, all system-calculated using the primary components of OEE, including availability, quality performance, performance and unplanned downtime.
KPIs for Site Level Analysis
QAD Action Centers provide analytics to help managers and users to monitor metrics and KPIs. KPI highlights for the OEE Action Center include:
Site OEE Summary and Site OEE by Period: Calculated as (performance x availability x quality performance), the OEE summary offers an excellent way for users to track trends in operations and to ensure that the company is operating within its defined parameters. Since many of these factors are “trade-offs” with one another, the summary metric shows whether the company is staying in balance.
Site Availability Summary and Site Availability by Period: Availability is the ratio of actual operating time divided by planned production time. Planned production time is calculated by totaling the planned time for the schedule. This ratio shows whether the site is operating productively without unplanned downtime.
Site Quality Performance Summary and Site Quality Performance by Period: This metric shows whether the site is operating within its quality parameter. The calculation is to divide good pieces produced by total pieces produced.
Site Performance Summary and Site Performance by Period: This metric tells whether or not the site is running efficiently. The calculation is to divide ideal run time by actual run time. A value over 100 percent shows that the company is operating extremely efficiently, but it more often indicates that the standard times are too loose. Many companies run effectively between 75 and 95 percent.
Site Total Unplanned Downtime and Site Total Unplanned Downtime by Period: This metric is the total of all reported time in the “Down” category. It shows whether or not the site’s preventive maintenance program is adequate enough to support required operations. Some unplanned downtime may be unavoidable, but monitoring trends can be valuable.
The summary metrics are shown as three-month bar graphs, and users can change the time frame. The period starts with the current date and goes back three months. The period metrics are shown as line graphs for 13 prior weeks plus the current week. Users can see the actual data by hovering over a point in the line and can drill down to the underlying detailed transaction browses.
The Importance of OEE
OEE provides a view into the primary factors that make up an effective operation, and one of the best things about this action center is that QAD Adaptive ERP calculates these metrics automatically from the data users input as a matter of day-to-day activities. The resulting insight is invaluable for managers in charge of ensuring operations run effectively and can guide them to areas that need attention long before problems get out of hand. The ability to make quick, fact-based decisions cannot be overstated.
QAD Adaptive ERP supports manufacturers by helping them adapt to change. QAD Manufacturing helps to reduce the cost of goods sold, increase customer satisfaction and streamline operations, even for multi-mode manufacturers, by adapting to changes as the business evolves.
Which KPIs and metrics are most important to your organization? Learn more about QAD’s predefined Action Centers by role as well as best practices for each.