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KPI and OEE in Digital Manufacturing

Mar 16, 2021 11:30:21 AM / by Alleantia Guru

Manufacturing

Modern companies find themselves living in a hyper-connected, fast, competitive reality, where the production capacity itself is not sufficient to create a space in a crowded market. For this reason, the concept of Lean manufacturing, or lean production, is increasingly widespread.

The concept was invented in the 1950s at Toyota factories, as a management methodology to reduce waste and make production processes efficient and excellent. Specifically, 'waste' means the expense related to all those resources that have been used for purposes other than to create value for the customer. The fundamental objective of Lean manufacturing is to optimize management logics by identifying 7 types of spechi: overproduction, expectations, defects, inefficient transport operations from one point to another, stocks, ineffective handling in the processing cycle, process inefficiencies.

Do you want to know more about Manufacturing?

On the IIoT Day (March 18th, 9:30 - 10:30 ET --- 14:30 - 15:30 CET), Antonio Conati Barbaro, COO of Alleantia, will present these pillars, in the round table entitled "Creating the foundation of Digital Manufacturing ".

IIoT World Day

What are KPIs and why no company can do without them

Key Performance Indicators (KPIs) monitor the efficiency of production processes with the aim of increasing production and increasing corporate competitiveness, establishing what results are to be achieved through a precise marketing strategy.

Each company has different needs, which correspond to different strategies and KPIs chosen on the basis of the desired performance and the priorities identified.

In general, however, all performance indicators have four characteristics in common: they must be quantifiable and measurable, integrable with current business processes, directional (i.e. they must indicate if there are actual improvements) and finally they must be operational, as they can be compared with the context.

Which is being analyzed to measure changes in efficiency.

Macro categories of KPIs can then be identified, within which specific parameters can be chosen based on the needs of individual companies.

The first type are the KPIs of the machine resources, which concern the efficiency performance of the machines used and are fundamental to define the factory calendar to be managed.

Then there are the KPIs of human resources, referring to efficiency performance and important for establishing the classification of factory times (i.e. the expected time, actual time, final time, etc.).

These indicators derive from a relationship between different amounts of time: for example, efficiency is calculated by dividing the expected time by the processing time, while the yield is equal to the expected time / actual time.

Finally, there are global KPIs that combine mixed magnitudes with a single indicator to get a general overview.

 

Overall Equipment Effectiveness

The OEE is an indicator relating to the performance of operations in plants and productivity, it is expressed as a percentage and is used in different sectors and industries, making comparisons on different processes possible. The general nature of the OEE makes it a useful parameter to understand if a plant is really productive, measuring how efficient and qualitative the various operations are performed. In summary, we can say that this KPI is the result of the multiplication of three factors: availability, performance and quality. The first point is given by the percentage of time in which a machine or other physical resources are, in fact, available and functional. Availability coincides with the goal of keeping staff and equipment at the planned production level, to avoid breakdowns or the unavailability of useful materials. The percentage relative to the performances indicates the speed of operations or the number of units produced in a certain period of time, to compare them with the established speed standards.

It should be noted the proximity that exists between the values ​​of availability and performance with the Rated Capacity of APICS (Association for the Management of the Supply Chain, a non-profit international education organization), that is, use x efficiency.

This rate indicates the comparison between current levels of production and those planned, and is important in determining when to schedule on an im. 

 

Do you want to know more about Manufacturing?

On the IIoT Day (March 18th, 9:30 - 10:30 ET --- 14:30 - 15:30 CET), Antonio Conati Barbaro, COO of Alleantia, will present these pillars, in the round table entitled "Creating the foundation of Digital Manufacturing ".

IIoT World Day

Tags: IIoT, #IIoTWorldDay, Alleantianews, AlleantiaEvents, KPI, OEE, digital manufacturing

Alleantia Guru

Written by Alleantia Guru

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