The Business Case for OEE Systems

Justifying capital expenditure in order to implement any new application is a fundamental first step, particularly in the present climate, so using an amalgamation of genuine data from existing Idhammar clients, this whitepaper sets out a detailed business case for implementing an OEE System in the UK plant of a ficticious organisation - introducing Paint-Pot International (PPI)....

Customers implementing an OEE System see between 10 and 20% improvement in their OEE score during the first 12 months following roll-out. Exact figures will vary and depend upon the nature of the business, the initial OEE score, the mode of data capture (manual or automatic), and the amount of focus given to the improvement agenda. However, the Business Case whitepaper provides an example of the typical costs and ROI of implementing an OEE system.

As you will see, it is possible to break even within 2 - 6 months of our system being fully operational in your organisation. Furthermore there are additional benefits which are difficult to quantify in financial terms including:

• A cultural change
• Instant status updates
• Powerful drill down analysis
• Automatic, customised reports and
• Creative and proactive problem solving

Despite the limitations of the model, this business case proves that small improvements in OEE can result in big improvements to operations and profitability.