Profitability in any company is determined by efficiency of operation. In lay terms this means how effectively one uses ones production resources. Overall Equipment Effectiveness (OEE) is a key performance indicator, which measures out of available time how much time is efficiently used in producing saleable goods. OEE is a performance metric compiled from data on machine availability, performance efficiency and rate of quality that is collected either manually or automatically. In most companies bottleneck machines or key machines determine throughput of the process. When a critical machine is inoperable, it brings downstream operations to a standstill. This can negatively affect delivery commitments to the customer, which in turn impacts cash flow and revenue.
Manual collection & processing of data is tedious and at times erroneous. Automatic data collection followed by idle time analysis helps management to continuously monitor productivity on the shop floor and take measures to reduce idle time thereby improving productivity.