Manufacturer Quality Metric: MQM
Overall plant performance index is a critical metric for manufacturers looking to boost productivity. Developed in the 1980s by a Japanese industrial expert, overall equipment effectiveness is now a widely used standard for measuring the effectiveness of factory operations.
The overall equipment effectiveness metric takes into account four vital elements: availability, performance and quality. Each of these components affects the final outcome. Deficiencies in any component can significantly affect the Lean Manufacturing consultant process.
Availability, or production readiness, measures the percentage of time that production is underway. This not only includes the time when the equipment is operational but also accounts for planned downtime. Availability is heavily impacted by various aspects such as production planning and maintenance procedures.
Performance measures the rate at which a piece of equipment produces at highest efficiency. This metric considers the equipment’s capacity and throughput. To calculate performance, manufacturers determine the actual production of the factory to its production potential.
Quality is perhaps the most critical component of OEE, as it represents the proportion of output that are produced to meet specifications. High-quality output not only improves the manufacturer’s reputation but also reduces losses due to wasted materials. Quality is affected by several elements including production processes.
In assessing overall performance, manufacturers combine the availability, performance, and quality metrics. When provided with this information, managers can easily spot opportunities for growth within their factory operations. Addressing these issues can have a marked effect on productivity and ultimately, profitability.
In practical terms, an OEE value of 85% is generally considered average. However, manufacturers striving for excellence in manufacturing will strive for OEE values of 90% or higher. By implementing incremental enhancements, manufacturers can drive operational excellence and strong operational performance in their enterprises.
For OEE to be an useful indicator of efficiency, manufacturers must adopt a data-driven approach to tracking and monitoring performance. Continuous evaluation of overall performance provides insights for the execution of strategic upgrades, ultimately driving strong operational performance, and sustainable development.
