OEE Goes Real Time

Automation World - July 2009

Plants find efficiencies through dynamic or real-time measurement of equipment effectiveness.

Overall equipment effectiveness (OEE) metrics are coming in handy during this recession. OEE is a set of measurements that tracks the availability, performance and quality output of plant equipment. More and more, plants are turning to OEE to get increased efficiencies from their existing equipment. The rationale for measuring OEE is varied. Some seek to extend the life of existing equipment; others want to reduce costs during the recession. The overriding goal is to increase production without investing in more equipment or personnel. Recently, plants have turned to real-time OEE so they can make efficiency adjustments while the equipment is running. Some are adding a new dimension—energy consumption metrics—to the classic OEE measurements of equipment availability, performance and quality.

Simplest KPI

OEE is an individual component of a plant’s overall measurement of key performance indicators (KPI). […]

Ultimately, OEE helps plant operators fine-tune their equipment to improve production. […]

As companies strive to lift their OEE metrics, improvements get difficult as efficiency rises. […]

OEE reveals the efficiency of each single piece of equipment rather than looking at the whole plant. The idea is that the plant will be more efficient if each individual piece of equipment is running optimally. […]

Make it actionable

The difference between OEE metrics delivered in delayed reports and real-time OEE is often the difference that lets operators respond to the metrics. […]

Real-time OEE—sometimes called “dynamic” OEE—lets operators tweak their equipment as it’s running. “The thing that’s really changed in OEE is it’s becoming more dynamic or real-time,” says Craig Resnick, research director at ARC Advisory Group Inc., in Dedham, Mass. “With real-time measurements, operators can make real-time decisions. If a machine is not running up to its full potential, one of the OEE variables will be out of whack. You can monitor it constantly and make the corrections as the problems occur.”

Hot topic

The recession has brought new attention to OEE. Plants are looking to reduce costs and get more production without investing in new equipment. “OEE is a hot topic these days because of the economy. Budgets have been cut or frozen, so plants are looking inward to improve their own processes,” says Melissa Topp, manager for manufacturing intelligence at ICONICS Inc., a manufacturing software supplier based in Foxborough, Mass. “OEE is a way to benchmark where the plants stand today and identify problem areas where improvement can be achieved. Plants are using OEE to help make those improvements.”

To a large degree, OEE is an alert that lets you know you’re spending money unnecessarily. […]

OEE can be used as a way to compare multiple plants within a company. It becomes a best practice that can be used as a template to improve less efficient plants. […]

Energy watch

In recent years, some plants have added a fourth component to the availability, performance and quality metrics of OEE—energy consumption. […]

OEE is becoming widely used to help plant managers trim costs. The cost reductions that come with OEE are especially interesting during these recessionary times. OEE has been around a long time, dating back at least to the 1960s, but recent developments in real-time OEE have given it more attention as a cost-savings tool. Operators can tweak the equipment on the fly and squeeze out new efficiencies. Some plants have added energy consumption measurements to the OEE mix to eek out even greater savings.

ICONICS Background Information

Founded in 1986, ICONICS is an award winning leader in the development of Web-enabled industrial automation and manufacturing intelligence software for Microsoft® Windows® operating systems. Our solutions are certified for Windows 7, Windows Server 2008 and Windows Vista. ICONICS has successfully deployed more than 250,000 solutions in over 60 countries worldwide. Its solutions meet diverse customer needs in a variety of industries including Automotive, Building Management, Food & Beverage, Oil/Gas/Petrochemical, Machine Builders, Pharmaceutical/Biotech, Security, Water/Wastewater, Utilities, Government Infrastructures and more.

ICONICS’ corporate headquarters is located in Foxborough, Massachusetts (USA) near Boston. The company has offices throughout the United States, as well as in Australia, China, France, India, Italy, Germany, Netherlands and United Kingdom. ICONICS also has a joint software development and sales office in the Czech Republic.

© 2010 ICONICS, Inc. All rights reserved. Specifications are subject to change without notice. GENESIS64, GENESIS32, Pocket GENESIS, BizViz and their respective modules, OPC-To-The-Core, and Visualize Your Enterprise are trademarks of ICONICS Inc. Other product and company names mentioned herein may be trademarks of their respective owners.