OEE in the Context of World Class Manufacturing

The escalating costs of labor, power, utilities, and transportation don’t release managers from the obligation to deliver results, and their targets remain unchanged. How can one cope with this mounting pressure? 

One way to address this challenge is by increasing efficiency, ensuring that, by utilizing the same resources – machines, tools, and workforce – we can manufacture more goods or services. Yet, before diving into this, let’s first determine what efficiency truly entails and how to measure it.  

My recent article, available at ImFactory Knowledge Zone, delves into the topic of OEE, the KPI most widely used in performance analysis. 

Link to the article: The OEE Indicator: How to Calculate Equipment Effectiveness Based on Availability, Performance and Quality 

If you’re wondering what it means to have a high OEE, the answer may lie in the concept of World Class Manufacturing (WCM). 

WCM represents an international standard, an optimization strategy, or a methodology focused on improving the operations of an enterprise. Implementing WCM is founded on two sets of pillars – managerial and technical. 

Their implementation requires continuous efforts from all employees. Therefore, the engagement must not be sporadic. On the contrary, it should be deeply embedded in the organization’s culture. Each pillar is defined by seven implementation steps, and the degree of adaptation is assessed during both internal and external audits. These audits form the basis for certification at one of four levels: bronze, silver, gold, and the highest, world-class.