A Practical
Guide to Optimal
Equipment
Effectiveness and
Plan Attainment for
Food & Beverage
Manufacturers
Page 2
For food and beverage manufacturers, nothing is more important than factory floor operations. You always want
to be running at optimal efficiency, but does your business have the tools necessary to determine just how
streamlined and productive your processes are?
Overall equipment effectiveness (OEE) systems provide organizations like yours with the visibility and
control they need to eliminate inaccuracies, proactively solve problems and make plans for improvement.
Implementing such a solution has the potential to benefit everyone in the organization, as well as your bottom
line.
It won’t happen overnight and will take effort across all your departments, but once your company makes the
move to a modern OEE platform, you’ll start seeing benefits right away and enjoy greater agility and profitability
down the road.
Identifying Issues and Assessing Needs
All of your business’s teams will be impacted by the implementation of a new OEE system, so it’s important to
approach the undertaking with a thorough plan for handling the adjustment. The good news is that once it’s
done, assuming you’ve found the right solution, your employees will find their new responsibilities simple to
accomplish and will see the impacts of their work immediately.
Whitepaper | A Practical Guide to Optimal Equipment Effectiveness and Plan Attainment for Food & Beverage Manufacturers
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An OEE platform eliminates the need for manual data entry, paper records and elaborate Excel spreadsheets.
It tracks your products and processes in real-time, capturing important insights along the way that allow you to
identify issues and devise the right ways to rectify them.
These solutions frequently replace outdated legacy systems that have long since outlived their usefulness, and
with the automations they facilitate, your business can drastically reduce the risk of human error. That means
you can rely on your facts and figures to be accurate and up-to-date.
We can look at an example of a hypothetical cookie manufacturer to illustrate the difference an OEE platform
can make. Without a system to help pinpoint where errors occurred or production slowed, the business is left
guessing as to what happened when goals aren’t met.
With an OEE solution, though, they’ve got access to real-time data that shows specifically where the hold-ups
were in their processes. That information would have been flagged for review immediately, likely allowing the
company to avoid falling short on their efficiency and output.
When your people are left in the dark as to why operations didn’t meet expectations, they begin to lose sight
of the potential progress that could be made if they had the tools they needed. On the other hand, if they know
what’s going on minute to minute, they can act intelligently and quickly to address issues.
“As the data is presented in real-time, we can selectively improve production processes in real-time and ensure
optimal utilization of plant facilities and manpower,” said Jan ven den Broek, Managing Director of Intersnack
Knabber-Geback GmbH & Co. “This enables us to increase efficiency in each plant up to 10%, which is directly
reflected in lower production costs.”
“As the data is presented in realtime, we can selectively improve
production processes in real-time
and ensure optimal utilization of
plant facilities and manpower. This
enables us to increase efficiency
in each plant up to 10%, which
is directly reflected in lower
production costs.”
Jan van den Broek, Managing Director, Intersnack
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Defining OEE and Its Importance
A series of equations can help you quantify your business’s overall equipment effectiveness. These allow you to
account for rate, yield and utilization in one figure:
Rate = Units per minute vs. standard rate
OEE = Rate x Yield x Utilization
As you might expect, a core function of an OEE solution is to automatically perform these calculations for you
and provide you with the results so that you can examine where your bottlenecks are and what can be done to
streamline your processes.
Your teams will know as soon as operations fall below 70% of optimal figures—which is widely considered the
threshold between “acceptable” and “slow” in food and beverage manufacturing—and get to solving whatever
problems have arisen right away. You can’t afford to make decisions in the rear-view mirror, after all.
The implementation of an OEE system can result in dramatic turnarounds in efficiency, considering many of a
business’s issues can remain hidden without such technology. Don Reese, Senior Operations Data Analyst at
Litehouse Foods, can attest to the potential for massive improvement.
“When we rolled out our OEE platform, we thought we were a 60-70% uptime company when we were only
actually seeing 18-25% uptime because we were missing so much data,” Reese said.
Yield = Out/total processed in
Utilization = Uptime/net available time
Perfecting Your Plan Attainment Approach
Put simply, plan attainment measures how much of your production schedule is achieved. Having a good grasp
on your figures and understanding why you might not be meeting your goals is critical in such a competitive and
fast-moving industry.
What price do you pay when your processes aren’t leading to the results you expected? You struggle to meet
customer orders, putting a strain on those relationships, and miss out on revenue that the business could have
earned. And if you scramble to make up for shortages with extra shifts and overtime, you create a ripple effect
that hampers further operations.
An OEE solution lets you keep your finger on the pulse of the business’s performance so that you don’t have to
guess or make assumptions about your productivity. With greater certainty and frequent assessments of up-todate key performance indicators (KPIs), you maximize your organization’s ability to adapt and make progress.
“We make decisions based on hard facts and not gut feelings,” said Ina Wegener, Director of Operational
Excellence at Intersnack. “This also tangibly increases the workforce’s acceptance of improvement measures.”
Whitepaper | A Practical Guide to Optimal Equipment Effectiveness and Plan Attainment for Food & Beverage Manufacturers
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Another way of thinking about an OEE system is that it reveals the “why” behind your results, be they good or
bad. If you exceed your production plan, you know why your values were higher than expected. Likewise, if you
have to delay a shipment because an order is taking longer to fill than anticipated, you can drill down to the root
cause of the hold-up.
Good OEE platforms also measure two critical areas for potential inefficiency and loss: changeover and
giveaway.
Changeover – Just five minutes can make the difference between reaching plan attainment and failing.
›
By simply measuring changeover times, your teams become more aware of how their personal efficiency
affects overall production, and from there the organization can explore just what is causing changeovers to
take longer than absolutely necessary.
Giveaway – Overfilling packages to ensure that minimum unit count or volume is met may seem like an
›
unavoidable source of loss, but it’s vital that you closely track exactly what your giveaway is so that you can
minimize the amount of product that goes to waste. That, in turn, will improve your bottom line by reserving
materials and also keep your business safe from potential legal concerns from over- or under-packing.
The best OEE solutions allow you to act proactively, heading off problems before they even occur. When you’re
launching a new line with new processes, you’ll know what issues have occurred with similar operations in the
past and can safeguard against them going forward.
“When we rolled out our OEE
platform, we thought we were a
60-70% uptime company when
we were only actually seeing
18-25% uptime because we were
missing so much data.”
Don Reese, Senior Operations Data Analyst, Litehouse
Foods
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Empowering Your Teams with Technology
Your plants are at the heart of your food and beverage manufacturing business. That’s why it’s so crucial
that you equip them with the right modern systems and adopt agile, intelligent methods for optimizing your
operations.
Knowing that getting a handle on your efficiency and effectiveness is so important, consider exploring what
Aptean Process Manufacturing OEE could do for your organization. With decades of experience in the industry,
our solution was designed for companies like yours and can propel you forward.
Contact us today to learn more about this purpose-built solution and how it can work for you.
Are You Ready to
Learn More?
Interested to see how Aptean Food &
Beverage ERP can help you better manage
your food company?