The decision to use OEE theory when building the Terra CMMS equipment maintenance and production operations management system was made in order to:
- increase production volumes with the available resources, meeting customer needs;
- increase product sales by reducing production costs;
- increase the flexibility of production processes by bringing new products into production.
OEE (Overall equipment effectiveness) is a good manufacturing practice and one of the performance assessment methods widely used in the manufacturing industry. It has proven to be the key indicator for assessing a company's performance. OEE plays an important role in increasing the efficiency of the production process while ensuring quality, consistency and productivity. When implementing a system based on OEE theory, you can apply management tools that ensure productive management and compliance with the Six Sigma standard.
The benefits are directly tangible, for example the ratio of quality, deadlines and pay. It is a general management method that helps increase productivity, improve quality and reduce costs while keeping a strict delivery schedule, improving safety and raising employee morale. Equipment effectiveness can be increased mainly by focusing on reducing losses and downtime.
OEE theory helps continuously monitor and improve the efficiency of the production process