How Overall Equipment Effectiveness pertains to Benchmarking
How Overall Equipment Effectiveness pertains to Benchmarking
How OEE pertains to Benchmarking
What the heck is benchmarking?
Benchmarking is the procedure of evaluating an individual's business procedures and overall performance to the market best practises. Points that are typically measured are:
- Quality
- Time
- Cost
Benchmarking involves the management figuring out the very best companies within their field, or a comparable market and contrasting the results and operations of those examined and seen as targets. Afterward you compare and contrast your company to observe how it measures up and the way it may be improved.
A brief history of benchmarking:
The phrase 'benchmarking' was originally used by cobblers when they referred to measuring peoples feet.
They would place a person's foot on to a "bench" and draw around it to be able to make a pattern from which to create their shoes. Although now, benchmarking is mostly utilized to measure functionality especially associated with manufacturing. It generally runs alongside procedures such as OEE (Overall equipment effectiveness) and lean manufacturing.
OEE measures the usefulness of your business and equipment. You should use your OEE results to determine how you are able to evaluate and benchmark to others.
A typical benchmarking process:
1. Initially determine your difficult areas. Use you OEE results here.
2. Determine various other industries which happen to have similar functions.
3. Determine other businesses that are frontrunners inside these sectors.
4. Review others and see what their measures and practises are.
5. Visit these top companies to see if they're willing to reveal information with you.
6. Carry out your brand-new practises.
Implementing practises is 1 of the most important steps here.
Numerous organizations accumulate all theimportant information after which quicklyget back to performing things the same old way. It will need drive and dedication to generate the necessary changes plus they won't happen instantaneously. You will learn this by just talking to those people who are market leaders. You'll find they have needed to devote an tremendous period of time and effort to reach where they are. This kind of practice involves every employee to accept it, and therefore only start the process as soon as that is the case.
This takes us perfectly right into our following point
Are there any charges?
There are three principal places where you will come across expenses while you are going through the rigors of OEE and benchmarking. These include:
- Costs of time
- Database costs
- Visiting Costs
The first pay out might be rather pricey nevertheless , you will find the main advantages of it over a lengthy time period!