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How to Calculate OEE in Global Shop

Overall Equipment Effectiveness (OEE) is a crucial metric for manufacturers looking to improve their operational efficiency and maximize productivity. By measuring the performance of equipment and machinery, OEE provides valuable insights into areas for improvement and helps identify potential bottlenecks in production processes. In this article, we will explore how Global Shop, an industry-leading manufacturing software solution, can be configured to calculate OEE accurately and efficiently.

Understanding Overall Equipment Effectiveness (OEE)

Before diving into the specifics of calculating OEE in Global Shop, it is essential to have a clear understanding of what OEE represents and its significance in manufacturing. OEE is a measurement of the percentage of the planned production time that is truly productive.

OEE takes into account three key factors: Availability, Performance, and Quality. Availability measures the actual operating time of equipment compared to the planned production time. Performance evaluates the speed at which equipment runs compared to its maximum capability. Quality assesses the number of defect-free products produced compared to the total number of products.

By combining these three factors, manufacturers can assess the overall efficiency of their equipment and identify opportunities for improvement.

Availability is crucial in determining OEE as it highlights the amount of time equipment is actively producing goods. Factors such as downtime due to maintenance, changeovers, or breakdowns can significantly impact availability. Performance, on the other hand, focuses on the speed at which equipment is operating. It considers factors like slow cycles, small stops, and idling time that affect the overall performance of the machinery.

Quality plays a vital role in OEE as it reflects the output of the equipment in terms of meeting the desired quality standards. High-quality products reduce the need for rework or scrap, ultimately improving the overall OEE score. Manufacturers often track quality metrics such as first-pass yield and reject rates to evaluate the effectiveness of their production processes.

Configuring Global Shop for OEE Calculation

Global Shop offers a comprehensive set of tools and features to support OEE calculations. The first step in configuring the software for OEE calculation is to ensure that all relevant equipment and machinery are properly defined and recorded in the system.

Each piece of equipment should have accurate information regarding its specifications, downtime, and production capacity. It is crucial to also input data on maintenance schedules and historical performance to ensure the accuracy of OEE calculations. This additional information will enable Global Shop to provide more in-depth insights into equipment efficiency and identify areas for improvement.

Furthermore, Global Shop allows users to set up custom alerts and notifications based on OEE thresholds. This feature enables real-time monitoring of equipment performance and immediate action in case of deviations from expected OEE levels. By leveraging these alerts, manufacturers can proactively address issues that may impact production efficiency and overall equipment effectiveness.

Steps to Calculate OEE in Global Shop

Overall Equipment Effectiveness (OEE) is a critical metric for manufacturing companies as it provides a comprehensive understanding of how effectively a manufacturing operation is utilized. Global Shop Solutions ERP (Enterprise Resource Planning) system offers robust tools to calculate OEE. This step-by-step guide will walk you through the process of configuring and calculating OEE within Global Shop.

Step 1: Set Up Global Shop

Ensure that Global Shop is correctly set up for your manufacturing environment. This includes:

1. User Accounts and Permissions:
– Ensure all relevant personnel have access to Global Shop with appropriate permissions to view and enter production data.

2. Machine and Work Center Configuration:
– Define all machines and work centers in the system. This includes specifying their operational parameters, maintenance schedules, and any other relevant details.

Step 2: Define Standard Production Metrics

OEE is calculated based on three primary metrics: Availability, Performance, and Quality. You need to define the standard production metrics for each of these components within Global Shop.

1. Availability:
– Input the planned production time for each machine or work center.
– Define the scheduled downtime (e.g., maintenance, breaks).

2. Performance:
– Set the ideal cycle time for each product.
– Define the expected production rate.

3. Quality:
– Establish acceptable quality standards and define how defects will be recorded.

Step 3: Configure Data Collection Points

For accurate OEE calculation, you need to collect real-time data on production. Configure data collection points within Global Shop for:

1. Machine Downtime:
– Implement real-time tracking of machine downtime.
– Record the reasons for downtime (e.g., maintenance, breakdowns).

2. Production Output:
– Track the number of units produced.
– Monitor cycle times for each production run.

3. Quality Control:
– Record the number of defective units.
– Track rework and scrap rates.

Step 4: Input Historical Data

For initial setup, input historical production data to establish a baseline for OEE calculation. This data will help in understanding past performance and setting realistic goals.

1. Import Historical Data:
– Use CSV files or direct data entry to import past production records into Global Shop.

2. Verify Data Accuracy:
– Ensure the imported data is accurate and complete.

Step 5: Set Up OEE Calculation Parameters

Within Global Shop, set up the parameters for calculating OEE. This involves defining how the system will calculate Availability, Performance, and Quality.

1. Availability Calculation:
– Availability = (Planned Production Time – Downtime) / Planned Production Time
– Configure the system to automatically calculate downtime and planned production time.

2. Performance Calculation:
– Performance = (Ideal Cycle Time × Total Count) / Run Time
– Set the ideal cycle time and ensure accurate tracking of run time and total count.

3. Quality Calculation:
– Quality = (Good Count / Total Count)
– Ensure that all produced units and defects are accurately recorded.

Step 6: Generate OEE Reports

With all the data collection and configuration in place, you can now generate OEE reports. Global Shop provides various reporting tools to visualize and analyze OEE.

1. Standard Reports:
– Use the pre-configured OEE reports to get an overview of your production effectiveness.
– Customize reports based on specific work centers, machines, or time periods.

2. Custom Reports:
– Create custom reports to focus on particular areas of interest.
– Use filters and sorting options to drill down into the data.

Step 7: Analyze and Improve

Finally, use the insights gained from OEE reports to identify areas for improvement. Implement changes and monitor their impact on OEE.

1. Root Cause Analysis:
– Identify the primary causes of downtime, slow cycles, and defects.
– Use Global Shop’s analytical tools to delve deeper into these issues.

2. Continuous Improvement:
– Develop action plans to address identified issues.
– Track the effectiveness of implemented changes using OEE as a key performance indicator.

3. Feedback Loop:
– Regularly review OEE reports with your team.
– Encourage a culture of continuous improvement by setting and reviewing goals.

By following these steps, you can effectively configure and calculate OEE within Global Shop, leading to better visibility into your manufacturing operations and driving continuous improvement efforts.

Best Practices for Calculating OEE in Global Shop

While Global Shop provides powerful tools for calculating OEE, there are additional strategies that can further enhance the accuracy and utility of OEE calculations.

One important aspect to consider is the utilization of downtime codes within Global Shop. By categorizing downtime events into specific codes such as equipment failure, changeover, or maintenance, manufacturers can gain deeper insights into the root causes of productivity losses. This detailed breakdown of downtime can help in pinpointing areas for improvement and implementing targeted solutions to minimize disruptions.

Furthermore, integrating real-time data collection mechanisms with Global Shop can offer a more dynamic and responsive approach to monitoring OEE. By leveraging IoT devices or sensors to capture production metrics directly into the system, manufacturers can access up-to-the-minute OEE calculations and swiftly address any deviations from optimal performance.

Regular training and upskilling of personnel on OEE concepts and data interpretation can also contribute to maximizing the benefits of using Global Shop for OEE calculations. Ensuring that employees across different departments understand the significance of OEE metrics and how their actions impact overall equipment effectiveness can foster a culture of continuous improvement and accountability.

Challenges Calculating OEE in Global Shop

While Global Shop offers robust capabilities for OEE calculations, manufacturers may encounter challenges along the way.

One of the common challenges is data accuracy and reliability. It is crucial to ensure that data collection methods are standardized and consistently applied across all equipment and production processes. Inaccurate or incomplete data can lead to misleading OEE calculations and hinder effective decision-making.

Another challenge is the integration of disparate systems and equipment into the Global Shop framework. Ensuring seamless communication and data exchange between different machines and software can be complex, requiring careful planning and implementation.

Additionally, setting realistic target OEE values can be challenging, especially for manufacturers with diverse products and processes. It is important to establish benchmarks based on industry standards and continuously reassess targets to account for changes in market demand and technology advancements.

Moreover, training employees on how to accurately input data into the Global Shop system is crucial for successful OEE calculations. Providing comprehensive training programs and regular refresher courses can help minimize errors and ensure that data is entered correctly and consistently.

Furthermore, conducting regular audits and reviews of the OEE calculation process can help identify areas for improvement and optimization. By analyzing the data collection methods, software integrations, and target OEE values, manufacturers can fine-tune their processes and enhance overall efficiency.

Advantages of Working with a Smart Factory System for OEE Calculations

A smart factory system, enabled by advanced technologies such as Industrial Internet of Things (IIoT) and manufacturing analytics, offers significant advantages for OEE calculations in Global Shop.

Real-time data collection and analysis allow manufacturers to monitor equipment performance on a granular level. With instant access to accurate data, manufacturers can identify and address issues promptly, minimizing downtime and optimizing productivity.

Predictive maintenance capabilities offered by smart factory systems enable manufacturers to detect potential equipment failures before they occur. By leveraging machine learning algorithms and historical data, manufacturers can schedule maintenance activities proactively, reducing unplanned downtime and maximizing OEE.

Furthermore, smart factory systems provide advanced analytics and visualization tools that enable manufacturers to gain deep insights into OEE trends and identify areas for improvement. By leveraging data-driven decision-making, manufacturers can implement targeted strategies to enhance OEE and achieve operational excellence.

In conclusion, calculating OEE in Global Shop offers manufacturers a valuable way to evaluate and enhance equipment performance. By configuring and utilizing Global Shop’s powerful features for OEE calculations, manufacturers can unlock insights, drive continuous improvement, and ultimately achieve higher levels of operational efficiency and productivity.

Ready to elevate your manufacturing efficiency with the simplest, most agile system available? Discover how Mingo Smart Factory can seamlessly integrate with your operations, providing a swift, customizable solution to enhance productivity. With Mingo, you won’t need extensive IT support—our platform is designed for the manufacturing operations team to take full control. Whether you’re looking to connect to existing equipment or require hardware for legacy machines, Mingo is your partner in operational excellence. Don’t wait months for implementation; start your journey to a smarter factory today. Talk to an Expert and see how Mingo can transform your OEE calculations and overall productivity.

Picture of Alyxandra Sherwood
Alyxandra Sherwood
Digital Marketing Manager @ Mingo Smart Factory I Adjunct Professor @ SUNY Geneseo I Boston Marathoner I Second Street Award Winner I Media Professional with 15 Years Experience