Productivity Archives • erpandmore.com

ROI from OEE Software

OEE measures the overall efficiency of a production line or that of a whole facility. OEE makes a worthwhile improvement towards the productivity of a manufacturing unit. Implementation of software systems invariably benefits the OEE score by up to 20% in the first year. It has been proven that improving the Overall Equipment Effectiveness by just 1% produces a significant variation in the machine’s through put and savings in the unit cost of the produced items.

The OEE score is calculated from 3 elements: Availability, Performance and Quality. Availability equals the percentage of uptime of each manufacturing or plant asset. Performance equals the percentage throughput compared with the target set for it. Quality equals the percentage of scrap. To get the OEE score, multiply Availability by Performance by Quality.

Latest Oee Amazon products

OEE for Operators: Overall Equipment Effectiveness (Shopfloor Series)

Overall Equipment Effectiveness (OEE) is a crucial measure in TPM that reports on how well equipment is running. It factors three elements —the time the machine is actually running, the quantity of products the machine is turning out, and the quantity of good output – into a single combined score. Directly addressing those who are best positioned to track and improve the effectiveness of equipment, OEE for Operatorsdefines basic concepts and then provides a systematic explanation of how OEE should be applied to maximize a piece of equipment’s productivity and recognize when its efficiency is being compromised.

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OEE for Operators: Overall Equipment Effectiveness (Shopfloor Series)

Overall Equipment Effectiveness is valuable as a key performance indicator for factory supervisors. Whist the principles of the formula are simple, it can be extremely, highly complicated to calculate in in a working factory. Hence, special OEE software packages are normally used to acquire the data from each element of the manufacturing process and make the OEE calculation quickly. Typically this software is of a modular structure to give it maximum flexibility and allow it to fit with existing plant and data capture facilities and enterprise resouce planning system.

After the data has been capture and analysed, it is only useful once converted into reports that are reliable. OEE software from the main vendors gives a selection of reports that can be customzed and analyzed to faciliate the user to uncover what he is focused on.

OEE is accepted as the corner stone of lean manufacturing. via continuous improvements a manufacturing plant can become more energy efficient, improve productivity and decrease departmental silo-mentality as well as uncover and control risk. All aspects of manufacturing must comprehend the principles and practice of OEE and how it relates to the lean manufacturing principles as a key force for productivity manufacturing now and in the future.

ETO ERP: Making the Wrong Choice

ETO ERP: Making the Wrong Choice
Roger Meloy

Enterprise Resource Planning (ERP) systems offer great benefits to engineer-to-order (ETO) companies looking to increase productivity and decrease cost. According to TR Cutler, spokesperson for the ETO Institute, ‘These benefits come as a result of a successful implementation, but not every implementation is successful.’ Cutler asserts that, ‘One reason some implementations are not successful is the selection of the wrong system.’

The ETO Institute has just published a white paper, ‘Why Do Companies Choose the Wrong System?’ This document is written with engineer-to-order companies in mind. It highlights the problems facing ETO companies trying to find and evaluate a new ERP system. The while paper provides some time and simple steps companies can take to reduce the chances of making a critical mistake. (www.etoinstitute.org)

Cutler, who authors regular columns for Industrial Connection magazine (www.industrialconnection.net) and InMFG magazine (www.inmfg.com) is looking for case study profiles of ETO manufacturing companies and their ERP experiences. ‘The good, the bad, the ugly. I want to know what ETO manufacturers think about the ERP selection process, what companies have served them well and which have not. This will provide an interesting profile for the members of the ETO Institute.’

The ETO Institute specifically highlights some of the problems ETO manufacturers face when searching for an ERP system. Go to www.etoinsititute.org and learn more. Registration is free of charge and more than a thousand ETO manufacturers are expected to join in 2005.

Thomas R. Cutler ETO Institute 954-486-7562 www.etoinstitute.org e-mail protected from spam bots

Improving governance with information systems

One of the key things that ERP Systems provide are process controls. This article examines the issues around IS governance.

Improving governance with information systems
CHRISTOPHER CHAMBERLAIN

Why do we need information systems (IS) governance? Technology specialists tell us that there isn’t a great deal more functionality we can get out of our computer equipment. The next five years will not bring another Internet … revolution or significant changes in equipment size. We should concentrate on getting more out of our existing equipment by using it in a better fashion. IS governance is a framework for better controls.

Controls in the last couple of years have gained an image in the commercial world of excessive overheads and reduced efficiency. That does not have to be the case but it needs an approach different from the existing Sarbanes-Oxley process. Perhaps the future methodology could include more business controls designed to achieve greater productivity and asset control. Logistic controls to help an entity maximise its investment return on inventory usage could be an example.

The modern corporation needs financial controls because