AIOE Group issues OEE roadmap.April 23, 2012 -
PMMI and the Operational Reliability Solutions Group of the Alliance for Innovation and Operational Excellence released whitepaper titled "Overall Equipment Effectiveness: Guidelines for the CPG Industry and Their Suppliers." According to report, monitoring OEE metrics provides opportunity to improve processes, reduce rejects and rework, and enable consistent delivery of higher quality products. An OEE regimen, over time, will decrease operating costs by highlighting waste centers.
AIOE Operational Reliability Solutions Group Issues OEE Roadmap
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Press release date: April 21, 2012
First whitepaper from Alliance for Innovation & Operational Excellence tackles the how's and why's of measuring overall equipment effectiveness
Reston, Va.; -Measuring overall equipment effectiveness (OEE) can lead to longer equipment lifespan, better cash flow and other bottom-line boosting results, according to "Overall Equipment Effectiveness: Guidelines for the CPG Industry and Their Suppliers." The whitepaper was released today by PMMI and the Operational Reliability Solutions Group (ORSG) of the Alliance for Innovation & Operational Excellence (AIOE).
AIOE, a PMMI initiative with charter partner the Grocery Manufacturers Association (GMA), brings together representatives from consumer packaged goods companies (CPGs) and manufacturers to address key industry issues and establish best practices on a range of topics critical to the industry.
The OEE whitepaper is borne of some of those conversations, says Charles D. Yuska, president & CEO, PMMI: "The ORSG participants - a group representing 16 CPGs & five packaging and processing equipment suppliers/manufacturers - collaborated on this project because they truly value continuous improvement and operational excellence in manufacturing."
OEE is a mindset as well as a process, Yuska notes, but the qualitative, operational measurements and reporting allow a manufacturer to identify opportunities for immediate gains.
"It is vital to ensure that OEE metrics are easily administered, communicated and understood, and that they provide insight into every inefficiency and loss in your automated operations," says Dennis Belcastro, executive vice president, Industry Affairs and Collaboration, GMA. "Those metrics will expose all manufacturing losses, so you and your management team have the data you need to make objective business decisions that improve the performance, capacity and utilization of your plant assets."
With those improvements come the potential for a better bottom line, according to the report, which outlines three ways cash flow can improve:
o Monitoring OEE metrics provides the opportunity to improve processes, reduce rejects and rework, and enable consistent delivery of higher quality products.
o An OEE regimen, over time, will decrease operating costs by highlighting waste centers.
o Increasing uptime and output reduces the likelihood of machinery purchases solely for the sake of closing a productivity gap. Furthermore, exposing failures allows them to be addressed. In turn, the equipment undergoes less wear and tear, lengthening its lifespan and the time between capital outlays.
Case studies shore up the ORSG's assertions, and as promised, a roadmap for implementing OEE is set forth. This paper covers the four stages of Step 1, "Initiation": "Plan," "Do," "Check" and "Act."
"Like all great projects," Yuska says, "a successful; sustainable OEE regimen begins with a clearly defined scope and outcomes that engage key stakeholders. Make success metrics clear and easy to understand. It should be clear that using OEE procedures will make a significant and positive impact on the business."
Copies of this paper will be made available through http://alliance.pmmi.org.
About The Alliance
PMMI and Charter Partner GMA launched The Alliance for Innovation & Operational Excellence in 2011. The Alliance is a PMMI initiative that brings together representatives from consumer product companies and manufacturers to address key industry issues and establish best practices.
PMMI is a trade association of about 600 member companies that manufacture packaging, processing and related converting machinery in the United States or Canada; machinery components and packaging containers and materials. PMMI's vision is to be the leading global resource for the packaging and processing supply chain, and its mission is to improve and promote members' abilities to meet the needs of their customers.
PMMI organizes the PACK EXPO trade shows: PACK EXPO International, PACK EXPO Las Vegas and EXPO PACK México, connecting participants in the packaging and processing supply chain with their customers around the world. Coming Up: EXPO PACK México, June 26-29 in Mexico City, Mexico; PACK EXPO International at McCormick Place in Chicago, Oct. 28-31, 2012.
Learn more about PMMI and the PACK EXPO trade shows at PMMI.org and Packexpo.com.
Based in Washington, D.C., the Grocery Manufacturers Association is the voice of more than 300 leading food, beverage and consumer product companies that sustain and enhance the quality of life for hundreds of millions of people in the United States and around the globe.
Founded in 1908, GMA is an active, vocal advocate for its member companies and a trusted source of information about the industry and the products consumers rely on and enjoy every day. The association and its member companies are committed to meeting the needs of consumers through product innovation, responsible business practices and effective public policy solutions developed through a genuine partnership with policymakers and other stakeholders.
In keeping with its founding principles, GMA helps its members produce safe products through a strong and ongoing commitment to scientific research, testing and evaluation and to providing consumers with the products, tools and information they need to achieve a healthy diet and an active lifestyle. The food, beverage and consumer packaged goods industry in the United States generates sales of $2.1 trillion annually, employs 14 million workers and contributes $1 trillion in added value to the economy every year.
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