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ROI : what is the OEE for ?

In Learning
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5 min
Pierrick DANTI
Customer Care

While the calculation of the return on investment of a new industrial equipment is quite simple and easily quantifiable, it is not the same for the acquisition of a production optimization software such as MES. It is true that the cause and effect link between the increase in efficiency of the various means of production is not always easily attributable to the action of the software in question. So how do you calculate, evaluate and translate the positive or negative impact of the integration of a MES software on your productivity ?

OEE as a true indicator of return on investment

The best way to evaluate the effectiveness of a MES software integration is of course to follow the evolution of its primary interest: the increase of the OEE. Indeed, the OEE, result of three indicators (quality rate, performance rate and availability rate), sheds light on the overall health of production, using very precise data. Its composition allows an in-depth reading of the various production problems, and therefore, an ability to correct them. Once the OEE is calculated and known at a given moment, it is sufficient to compare it and see its evolution over time (e.g. after 5 months), in order to know whether or not the OEE has increased.

The most common OEE optimization factors with Astn’go

Increased productivity through agility and responsiveness

The real-time monitoring offered by Astn’go allows a significant increase in productivity thanks to the optimization of the means of production. With the same production tool, you produce more.

The connectivity of equipment (via IIoTs) via the Internet network allows an immediate transmission of information. Thus, operators and managers can act as soon as Astn’go detects a slowdown, a downtime or any other problem, which, allows the production capacity of the means of production to be increased.

Free up hours for managers and operators (dematerialization of operations)

Thanks to the dematerialization of production operations, data collect (declarations, scraps, quantities, downtimes, etc.) and the automation of administrative processing, which is so time-consuming in any industry, Astn’go frees up precious hours for both managers and operators.

Contrary to a common misconception, MES software is considered as an ally for the operators, as it saves them from repetitive, non-value added tasks. It greatly reduces the possibility of errors by accompanying them throughout the declaration process.

Operators and managers then devote themselves to the construction and implementation of action plans that are part of a continuous improvement process.

Identification and reduction of losses (material, time, breakdown…) :

Thanks to IIoTs, Astn’go has the ability to detect a range of causes of non-performance such as equipment micro-failures, rate difference, scraps, lack of material, breakdowns etc…

Once identified, these causes of non-performance can be corrected through better management of : inventory, adjustment times, scraps and machinery.

All of these fixes allow the recovery of machine time which will result in an increase of the production capacity.

A short Astn’go project, the guarantee of a quick ROI

The longer it takes to set up an improvement process, the longer the ROI will be. With the first SaaS MES software, Astn’go ensures a quick and easy installation. Once you have started your MES software integration project and placed an order on our website, you will receive the equipment to connect your shop floor within 7 days. Once the equipment installed, you will be able to directly take advantage of the data collected by Astn’go. Thus, the improvements made to your manufacturing process will be felt quickly and the return on investment will not be long in coming. Astn’go guarantees an ROI under six months!

Can Astn’go replace the acquisition of additional production equipment ?

Let’s suppose that in your shop floor, one production line (or several), has an OEE of 50%. In other words, it is only used at half of its theoretical rate. This means that your production line, which has a theoretical output of 1000 parts per hour, between scraps, breakdowns, rate differences, adjustment time, will only produce 500 parts per hour. Knowing that this type of example is very common, it is easy to imagine that the actual production level is far below the optimal production level. With our MES solution, you will be able to significantly increase your OEE in order to make the best use of your production tool. If your OEE increases from 50 to 65%, with the same production line, the same quantity of material and the same time slot, you will produce 650 parts instead of 500. With this increased production capacity, you may not need to make the dreaded investment in new production equipment.

In concrete terms, the integration of Astn’go will capitalize on the production forces already present, so as to produce more with the same production capacity and thus avoid a significant investment. Gone are the strategies of acquisition of production means, replaced by strategies of optimization and reduction of costs and losses in non-quality, non-availability and non-performance.

Why is Astn’go a risk-free investment ?

As a SaaS software, Astn’go is not an investment as such. The subscription is a rent smoothed over the duration of use.

As a SaaS software with no commitment, you can cancel your subscription at any time at the end of your period.

Moreover, you can try it for free for 30 days in your shop floor.