In Industry 4.0, Overall Equipment Effectiveness (OEE) stands as a pivotal component empowering manufacturing facility operators to finely assess machine performance, availability, and product quality levels. For companies embracing lean production methodologies, OEE emerges as a potent monitoring tool, efficiently spotlighting effectiveness declines, resource wastage, and their wider impacts. As discussed in this blog post, declining OEE scores can spring from various sources, highlighting the tool's significance in identifying and rectifying inefficiencies. Undoubtedly, OEE wields a profound impact on a manufacturing firm's profitability and competitive edge by enabling the incisive pinpointing and removal of wasteful practices. Categorizing productivity losses into availability, performance, or quality segments reveals the machines or plants' true value. By pinpointing the "six big losses" influencing the metrics and diligently working on their elimination, managers can significantly boost OEE scores, fostering sustained operational excellence.

Analysis of Significant Losses

In the manufacturing industry, a smooth workday without interruptions in production is an ideal scenario, although interruptions are inevitable due to various factors affecting machine operations. Planned stops for maintenance or servicing are necessary, but unplanned crashes and inefficient machine speed can lead to unnecessary time losses. Overall Equipment Effectiveness (OEE) helps in identifying six common types of losses under three categories: Availability, Performance, and Quality. By addressing these aspects, manufacturing companies can strive for greater efficiency and productivity, minimizing disruptions and maximizing output in their operations.

Availability

One of the key components of Overall Equipment Effectiveness (OEE) is the availability of manufacturing machines and systems, which refers to the time they are operational and productive. When machines are unable to run as scheduled, availability losses occur, leading to costly downtimes. These losses can be categorized into two groups, which are the first two major losses in OEE analysis.

Planned halts: Planned events causing a machine to cease production are considered losses in Overall Equipment Efficiency (OEE). However, these planned stops offer opportunities for improvement, as activities such as changeovers, inspections, maintenance work, and cleaning can always be optimized. Utilizing suitable software, detailed lists of planned stops can be created and systematically improved or shortened. While planned stops may not be inherently negative, there is significant potential for enhancement in these areas.

Unplanned halts: When a machine or system fails to produce as scheduled due to unforeseen circumstances, it is classified within OEE as an unplanned stop. This includes malfunctions, crashes, and absenteeism due to illness. External events like power outages or natural disasters can also lead to unplanned stops. In order to minimize these unproductive periods using OEE, it is crucial to accurately document the causes behind them. Utilizing digital tools for categorization and continuous analysis can help identify weaknesses in the production process, leading to the effective elimination or reduction of unplanned stops in many cases. 

Performance

Performance is a critical component of Overall Equipment Effectiveness (OEE). It measures the actual production output achieved within a specified operating period in comparison to the maximum potential output. Performance losses can stem from brief interruptions, extremely short pauses, or prolonged periods of slow operation.

Micro-stops are distinguished by their brief duration, typically lasting less than a minute. The causes may include poorly adjusted tools, faulty programming, blocked sensors, or brief but necessary cleaning work. These issues are typically resolved by the machine operator.
All micro-stops share the commonality of being often overlooked by management and machine operators. These short interruptions may appear insignificant, but they can accumulate to several minutes of unproductive time during a typical shift. One advantage of micro-stops is their predictability, as they can either be eliminated entirely or at least taken into account. While recording them can be challenging, utilizing automatic digital OEE capture can assist in this process.

Slow speeds : When a machine or system operates at a speed lower than its theoretical maximum, it results in losses. The causes of this can include factors such as the age of the machine, lack of proper maintenance, human error, or the use of substandard materials. In contrast to micro-stops where the machine temporarily halts operation, in this scenario, the machine continues to run but at a slower pace than its optimal speed. If the ideal running times are not specified on the machine's type plate or in the manufacturer's documentation, it is the responsibility of management to establish these times. This can be achieved by analyzing historical data on machine speeds to determine the maximum achievable production rate. Therefore, it is essential to conduct thorough research to determine the ideal running times initially. To enhance overall equipment effectiveness (OEE), it is crucial to utilize an automated software solution to address and rectify this issue effectively.

Quality

The optimal quality in the production process is achieved when manufactured products consistently meet the customer's requirements without needing any rework. Quality losses in terms of OEE refer to noncompliance with specified quality standards. Although quality issues have the least impact on OEE compared to other factors, they can still be financially burdensome when they do occur. Quality losses result in wasted materials and time, as every unsuccessful production attempt must be accounted for as a loss. Even reworked parts are considered losses due to the time and resources required for rework. Therefore, the objective of OEE measures related to quality is to attain 100% quality or zero rejects.

Reduced yield: Instances of this type of loss may arise when a machine or system experiences instability, resulting in the production of defective products until the issue is resolved. Such occurrences can occur during start-up, after modifications to the settings, or when adjustments are made to the part being manufactured. To prevent these significant losses, the machine operator plays a crucial role by understanding the necessary settings for "their" machine with precision, avoiding trial and error. Leveraging automated digital solutions can greatly reduce the impact of this type of loss within a short period.

Production problems: Regrettably, certain production issues may arise post-manufacture, such as packaging units containing incorrect product quantities, inaccurate labeling, or faulty packaging. These issues can be significantly minimized through the use of technical tools, such as sensors or cameras, to detect quality issues in real-time. Integrating specialized OEE software solutions with these tools will likely lead to the eradication of significant losses in the near future.

Reduce significant losses with the Nirmalya Enterprise Platform

In manufacturing operations, small deviations from ideal conditions can result in significant damages. Despite appearing minor, most of the six main losses are actually quite small but can accumulate to cause major issues, ultimately impacting competitiveness. Utilize the Nirmalya Enterprise Platform to address these losses effectively. Through automated data capture and real-time transparency, you can strategically initiate a process of continuous improvement within your organization.

Nirmalya Enterprise Platform suite is meticulously designed for manufacturing, integrated with AI and Business Intelligence to amplify enterprise operations. OEE is a crucial factor for various production improvement strategies like Lean Production, Continuous Improvement, Kaizen, Six Sigma, and Shopfloor Management. It helps in identifying and utilizing opportunities for improvement in production processes. OEE solutions facilitate effective communication and coordination at the production level, allowing for the quick detection and resolution of issues.

Automated solution

Automated metrics provided by Nirmalya MES not only benefit production workers but also supervisors, allowing them to focus on optimizing conditions rather than collecting data. The software can quickly identify bottlenecks and reveal interconnections within the production line, enabling supervisors to take targeted actions to address issues and improve production metrics. With the help of software-generated data, supervisors can improve efficiency and streamline operations.

Real-time Monitoring

Manual monitoring of a production line requires a reliable worker to constantly capture and report data in real time. However, with a custom software solution, all data and sensor reports are automatically recorded and displayed on monitors instantly. This allows for data to be visualized on control panels of machines and accessed on portable devices like tablets and smartphones. Additionally, production data can be easily shared with decision-makers and technicians through cloud technology. 

Automated Reports and Notifications

Consistently submitting reports in a standardized format without reminders and utilizing automatic notifications for maintenance tasks is essential for efficient operations. Software solutions can automate the configuration and delivery of reports and notifications, allowing maintenance workers to access information immediately and take necessary actions promptly. Eliminating detours and delays, standardized reports enable benchmarking production metrics and optimizing resource allocation based on actual requirements.

Renowned for its OEE-based platform,  Nirmalya MES stands out as a leading platform in the industry. By utilizing this platform, witness the seamless automation of key figures like OEE alongside insightful analysis. Gain access to unbiased metrics, real-time dashboards, detailed reports, and timely notifications that facilitate all facets of your company close to production. Unleash the potential of cutting-edge manufacturing software to optimize your production processes significantly. Reach out to us today to delve deeper into how Nirmalya's advanced solutions can revolutionize your manufacturing capabilities.