Study reveals operational KPIs that are crucial to performance

Focusing on reducing short stops, unplanned downtime and equipment failures help manufacturers improve OEE.

Source: Sage Clarity
Source: Sage Clarity

During the past year, Sage Clarity studied global manufacturing operations worldwide using Epicor's Informance solution to benchmark performance and correlate more than 20 manufacturing KPIs. Researchers applied Big Data techniques for benchmarking real-time production data analyzed over a three-month period. Over 500,000 unique manufacturing loss categories were analyzed.

Researchers used the Epicor Informance Enterprise Manufacturing Intelligence Suite and Clarity advisory services to collect data, derive insight and discover correlations to operational success of tactical and strategic actions. Data was organized into Best in Class, Average and Laggard groupings, to determine top, middle and bottom performers.  The study correlates behaviors of all levels of performers and KPIs.

The study reveals several operational KPIs that are crucial to performance:

  • Knowledge Index–Percent of untagged downtime
  • SKU Anomalies–SKUs that exhibit a production rate of +/- 10% of ideal production rate for the SKU.
  • Minor Stop Index–Number of minor stops per hour (minor stop = stop of a duration of 10 minutes or less)
  • Availability–Uptime over Scheduled Time

The analysis begins by establishing OEE as the Best-in-Class determinant: Higher OEE indicates better performance. All organizations are sorted from high to low by OEE, and related KPIs are then correlated to determine KPIs that impact performance. Below are Sage Clarity's suggestins for improving OEE: 

If OEE>70%: Best-in-Class Performers and Average Performers should focus on reduction in short-stops, which can correlate to better availability. Availability is the KPI most adversely affecting OEE.

If OEE is between 50-70%: Average Performers should focus on programs which reduce/eliminate equipment failure, which correlates to unplanned major downtime, another KPI affecting OEE.

If OEE is between 30-50%: Laggard Performers should focus on tagging downtime events regardless of duration to provide improvement insights, and on reducing equipment failure that can lead to significant amounts of major downtime, impacting availability and thus, OEE.

More information about the benchmark study is available at http://sageclarity.com/idea-lab/2017-oee-benchmark-study/

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