Manufacturing Operations in Oracle Fusion Cloud ERP: Planning, Costing, and Quality
Ask a plant manager how efficiently their operation is actually running, and you'll often get a confident answer that has little to do with what a rigorous measurement would show. It's not that plant managers are dishonest — it's that "efficient" tends to get judged by how busy the floor looks and how many orders shipped, rather than by the harder, more precise metric that actually captures performance
ORACLE FUSION CLOUD ERP FOR GROWING BUSINESSES
Manufacturing Operations in Oracle Fusion Cloud ERP: Planning, Costing, and Quality
The 25-point gap between average plants and world-class ones
Ask a plant manager how efficiently their operation is actually running, and you'll often get a confident answer that has little to do with what a rigorous measurement would show. It's not that plant managers are dishonest — it's that "efficient" tends to get judged by how busy the floor looks and how many orders shipped, rather than by the harder, more precise metric that actually captures performance: Overall Equipment Effectiveness, or OEE, which measures availability, performance, and quality together into a single number.
That number tends to be humbling. The widely used benchmark for world-class manufacturing performance is an OEE of 85%. The average plant runs closer to 60% — a 25-point gap that represents an enormous amount of lost capacity sitting in plain sight, disguised as "normal" operations.
Where the 25 points actually go
OEE losses get grouped into what the industry calls the "six big losses," and they rarely show up as one dramatic event. They accumulate from small stops, minor speed reductions, and quality defects that individually look unremarkable but compound into a large gap over a full production run. In some documented cases, reduced running speed alone accounts for over 58% of total losses in a given
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