Crunch The Numbers: Your Factory’s Money Maker
Crunch, crunch, crunch. That’s the sound of your factory working hard. But is it working smart? Let’s dive into a key metric that can transform that raw mechanical symphony into a profit-generating masterpiece: Overall Equipment Effectiveness (OEE). Imagine your factory as a high-performance race car. It’s got the engine, the body, and the driver. But is it crossing the finish line first? That’s where OEE comes in. It’s not just about how fast your machines can run, but how efficiently they’re converting raw materials into finished products. What is OEE? OEE is a manufacturing performance measurement that calculates how effectively your equipment is being used. It’s a percentage that represents the maximum possible output compared to what’s actually achieved. A higher OEE means more products out the door, less waste, and a healthier bottom line. Top Manufacturing accounting software – The Three Pillars of OEE OEE is built on three key components: 1. Availability: How much time is your equipment …