OEE Financial Gains
Why does a company look to implement the OEE Calculation?
In order to create the correct environment to save money:
"Make more for less" or
"Make the same in less time"
For many companies a 1% improvement in
OEE can have a significant positive impact on production costs, making the difference between securing your next order or winning the production of a new product within a group of companies.
Most companies having implemented an effective Continuous Improvement Programme driven by ‘Data and Information' systems achieve between a 5% and 20% increase in OEE. In real terms, and dependent on size, a 1% increase would typically save a company £100,000 to £800,000 in production costs.
An improvement in your OEE will have a direct affect on your Labour, Materials and Energy costs.
When it comes to winning your next order consider the following:
Your OEE is 50% and you currently have a production capacity of 200 units an hour. You have new orders for 18,000 units which will take you 90 Hours to produce at your current OEE.
What would happen if you competition had an OEE of 60% and could produce the same output in 75 Hours?
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Would this mean they would be able to offer a better delivery time and a better price?
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Could you absorb any additional labour, material and energy costs in order to compete?
Interested to know more? Email us at info@emspt.co.uk and a technical consultant will be in touch.
