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Overall plant performance index is a critical metric for manufacturers looking to boost productivity. Developed in the 1980s by a renowned manufacturing engineer, overall equipment effectiveness is now a widely used standard for measuring the effectiveness of production lines.

The overall equipment effectiveness metric takes into account two essential factors: availability, throughput and reliability. Each of these components affects the final outcome. Deficiencies in any one area can significantly affect the manufacturing process.

Availability, or plant availability, measures the percentage of time that equipment is available. This not only includes the time when the factory is operating but also accounts for planned downtime. Availability is heavily influenced by factors such as maintenance scheduling and operational efficiency.

Performance measures the rate at which a piece of equipment produces at highest efficiency. This metric considers the factory's production volume and operating speed. To assess efficiency, manufacturers compare the actual output of the equipment to its theoretical maximum capacity.

Quality is perhaps the most critical component of OEE, as it represents the percentage of products that are produced at the highest standard. High-quality output not only increases customer satisfaction but also reduces expenses related to repairs. Quality is impacted by multiple aspects including process control systems.

In calculating OEE, manufacturers combine the availability, performance, and quality metrics. When provided with this information, managers can quickly identify areas for improvement within their manufacturing processes. Addressing these issues can have a marked effect on productivity and ultimately, bottom-line performance.

In practical terms, an OEE value of 85% is generally considered average. However, manufacturers aspiring to industry leadership will strive for OEE values of 90% or higher. By implementing streamlined processes, manufacturers can drive sustainable growth and efficient growth in their businesses.

For OEE to be an useful indicator of efficiency, manufacturers must adopt a fact-based methodology to tracking and monitoring performance. Continuous evaluation of overall performance provides insights for the implementation of necessary improvements, iso consulting services firm ultimately driving efficiency, product quality, and continuous growth.