Why is O.E.E. so powerful as a visual management tool?

OEE stanwick
Lean Manufacturing
Lean

The power of using O.E.E. as a KPI in the different levels of the organisation (tiered accountability) lies in the simplicity of the tool:

  1. Overall Equipment Effectiveness (O.E.E.) reduces complex production problems to a simple, intuitive, actionable presentation of information. O.E.E. thus helps you visualise your operational performance in simple terms.
  2. O.E.E. (Overall Equipment Effectiveness) helps to systematically improve the right parts of the process within easy-to-obtain measurements.
  3. The beauty of O.E.E. is that it is not one magic number. It gives you several numbers, all of which are individually useful as your situation changes from day to day.

At Stanwick, we believe very strongly in the power of visualisation and visual management. Using a pragmatic O.E.E. dashboard to support an Operational Excellence transformation is a foundation. Taking a manufacturing organisation to a higher O.E.E. in a transformation journey is step one. Maintaining and continuing to strive for perfection is step 2. Having an O.E.E. visualisation tool (dashboard) ensures that attention does not wane and the energy of the entire organisation focuses on this benchmark KPI.

Using O.E.E. during the various operational meeting moments (shift meeting, morning meeting, management meeting) ensures attention. The use of SIC (short interval control) helps here to be short on the ball at all levels. Introducing SIC as a standard way of working always helps to achieve results in the short term.

Process improvement

Today we are flooded with tools & techniques to improve our business process. Just think of Six Sigma, TPM (Total Productive Maintenance), Lean, QRM (Quick Response Manufacturing), TQM (Total Quality Management), ... All these techniques have undeniably their advantage, but are often built from a well-defined vision. An integrated approach is thus required.
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