Produce More in the Same Time with OEE Systems:
If you have capacity constraints and cannot meet sales demand (you need to produce more in the same time), the bottom line savings you could make with
Idhammar OEE are staggering:
Based on the following assumption, we can calculate the value of a 1% improvement in OEE?
operating hours = 120 per week
design capacity =1,000 units per hour
revenue capacity = 5.00 euros per unit
energy= 600.00 euros per hour
labour = 500.00 euros per hour
materials = 2.00 euros per unit
Improve OEE from 50 to 51% and:
availability improves from 70 to 71%
erformance improves from 75 to 75.03%
quality improves from 95 to 95.17%
Now you make 64,610 units in the same time it took to make 63,000
So per shift that means:
wasted product decreases from 3,150 to 3,123
sales revenue increases from 299,250 to 307,436 euros so
profit increases from 34,950 to 39,970 euros
For every shift this equates to savings of 5,020 euros.
per annum, a 1% oee improvement is worth 261,040 euros
Now just imagine what a 10% improvement in OEE would mean to you in the first year, and every year after that.