Practical Guide · Manufacturing Improvement
ROI of your
OEE
Software
What results can you expect? No guesing needed, no blue eyes to believe… let the numbers talk!
return on ivestment
A ROI in a couple of months
The value generated by an average production machine is usually considerable. If OEE can be used to increase this, it will quickly yield significant value. A properly implemented OEE system will therefore pay for itself in no time.
On the other hand, if OEE is not implemented correctly and does not lead to improvements, the money and time invested will have been wasted.
Using your OEE software as a shop floor tool means:
- empowering those people who -day by day- operate the Value Creating Processes
- enabling the management to effectively support the Value Creation Process.
With this combination we typically observe 10-15% extra output within the first weeks (!). And then it does stop there.
Within these first weeks we suggest you make a proper loss analysis to reveal how much there is to gain and how to do so.
Depending your specific cost structure, typically we see revenues of thousands- and even up to hundreds of thousand euros per week.
Clearly, in this way proper OEE software provides a ROI very soon; but even better: these improvements and ROI can be made sustainable, meaning that you keep enjoying the same revenues week after week, year after year….
Unfortunately, many implementations of OEE software result in no improvement, or only marginal improvements, and therefore no return on investment.
wrong premise
- Using OEE software for micromanagement (the real-time OEE fallacy)
- Using OEE software for pointless comparisons (“benchmarking”)
- Using OEE software to sideline the team (top-down approach)
Wrong implementation
- Not all losses are visible (wrong definitions)
- Focus on ‘data’ rather than ‘information’ (No steering information available)
- Information does not reach the right people (no effective Daily Management
- Wrong behavior is rewarded (unclear objectives, expectations and rules)
- The software does not meet the team’s needs (for example, solutions driven purely by IT)
Unfortunately, many implementations of OEE software result in no improvement, or only marginal improvements, and therefore no return on investment.
key conditions
- Of course, technology is beautiful… But in the end, it is all about people!
- Provide the right training for your people, support your Continuous Improvement personnel and get you going whenever you get stuck.</li)
- The daily struggle of the operations management can be minimized, the daily hassle between various departments should disappear when they learn to speak a common language: the loss of effectiveness.
- Shop floor and operations decisions should be made based upon solid facts and figures.
- Have figures presented by the people who can influence them; long- mid- and short term.
Future-proofing
- After training your teams, setting up a Daily Management based on Facts, derived from your OEE software solution, be assured this software will also solve your requirements in the future.
- Make sure your solution will keep evolving.
- An effectively functioning OEE solution usually becomes the most important software on the shop floor.
return on ivestment
DOUBLING THE CAPACITY WHILE REDUCING THE COST…
HOW IS THAT POSSIBLE?
As large volumes of product are generated on machinery, the cash flows are also substantial. Improvements in volume – particularly where these result from reducing costly losses (such as rejects) – therefore yield significant financial gains. The case studies below illustrate how this can play out in practice
risk elimination
no risk guaranteed?
Is your supplier so convinced of the value of an OEE implementation that they can confidently offer you a ‘no-hassle’ guarantee;
“If we cannot show you within a year where and how you will recoup the cost of our software, you will receive a full refund of the purchase price.”
Do they know which guidelines you need to follow for such an implementation, and are your staff being trained properly? Have you ensured that data is being collected correctly?
let us calculate your roi
Want to know how much potential we see? Based on your situation, your numbers?