Manufacturing Operations in Oracle Fusion Cloud ERP: Planning, Costing, and Quality

operation; in others, idling and minor stops account for more than 62%. Changeover time between product runs has been identified as the single largest cause of OEE decline in some analyses, responsible for roughly 37% of the gap on its own.

The financial exposure tied to unplanned downtime specifically is enormous at scale — Siemens research puts the cost of unplanned downtime across the world's 500 largest companies at roughly 11% of annual revenue, a combined $1.4 trillion. The per-hour cost varies enormously by industry: an hour of downtime in automotive manufacturing runs an estimated $2.3 million, while the same hour in fast-moving consumer goods production is closer to $36,000. Even at the lower end of that range, an SMB manufacturer losing a handful of unplanned hours a month is looking at a real, recurring cost that rarely gets tracked as precisely as it deserves.

the gap between average plant OEE (about 60%) and the world-class benchmark (85%) — representing capacity that already exists on the floor but isn't being captured.

It would be easy to assume the fix for a 25-point OEE gap is new machinery, and sometimes it is. But a large share of the gap in a typical mid-sized manufacturer traces back to something less