Produce the Same in Less Time with OEE systems

If your market is mature and competitive, with few additional sales opportunities (you need to produce the same in less time), you can make immediate, impressive bottom line savings with Idhammar OEE.

What is the true impact of the extra materials, labour and energy you need to finance wasted hours? What is the benefit of setting more demanding targets, making the losses highly visible, and keeping your team accountable?

Based on the following assumption, we can calculate the value of a 1% improvement in OEE:

products required = 60,000 units this 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%
performance improves from 75 to 75.03%
quality improves from 95 to 95.17%

Time required is only 107 instead of 109 hours, so:
energy costs 64,199 instead of 65, 520 euros
labour costs 53, 500 instead of 54,600 euros and
materials cost 131, 600 instead of 132,000

Saving just 2 hours equates to:
energy savings of 68, 692 euros per year
labour savings of 57,200 euros per year
Materials savings of 20,800 euros per year

So, per annum, a 1% OEE improvement is worth 146, 692 euros

Now imagine what a 10% improvement in OEE could save you in 1 year, and every year after that.