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6. We want to see our progress. Should our software report the OEE trend?

OEE Trend Data

Q: I do agree that what gets measured gets improved. Software does a good job collecting data and giving it back in reports. What is lacking is OEE trend data. What should good OEE software report?

Arno Koch •    The first OEE software I developed in 1995 (the ‘OEE Toolkit’) and its successor ‘OEE Coach’ was designed to report the right information that you need to get real focused improvement. It reports always based on the three issues as told above (plus more if you do it clever, and good software should do so…). The quality of OEE software is determined by the quality of its analyses and its ability to influence the behavior of its users. Unfortunately most software is designed from an IT point of view, rather than from a ‘improvers’ point of view.

Labor Effectiveness

Q: Hmm, but our main measure of productivity is pieces per person hour and labor dollars per piece.

Arno Koch •    So you measure the result of your productivity. Let me ask you a question: Do you know how much potential productivity you lost? And can you pinpoint where precise you lost it? And what to solve first?

Q: To this we attempt to not speed up production but rather to reduce labor. Unless the capacity is needed – then we recalculate takt time.

Arno Koch •    If you look through Muda Glasses, there is only one ideal takt time! Not running so means having a loss….

Q: To this end we kaizen cells, attack scrap and rework, and stabilize machinery. We currently track and trend all of these areas and have been since 1989. And yes we do believe that all this leads to driving down costs.
Profit = Selling Price – Costs

Arno Koch •    I would modify your algorithm a little:
Profit = Volume x ( Selling Price – Costs)
How to raise volume? Deliver your customer:
• Highest quality
• Lowest cost
• Highest delivery…

Again: Can you be sure you attack the right loss, where is the major LOSS (=cost quality delivery) to fix?

Hey, I am glad to have linked up with you (it’s a small world these days).

Nice chatting to you Bob!
I hope I could tickle your mind to ‘learn to see’ (Jones…et al.)

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