How Much More Profit Do You Make at Half Your Cost Per Pound?

Posted by Spindle on Mar 6, 2018 4:27:46 PM

Topics: Tip

Spindle’s real time visual workplace display simplifies the concept of Overall Equipment Effectiveness (OEE)* so that all of your employees can easily understand how to take action.  

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Performance Rate is shown with easy to use color coding when you are running. Green when employees are performing at/above standard, yellow in the warning zone and red at low productivity (normally 85% of standard).

Availability losses are highlighted in Black for downtime, whether that is emergency breakdown maintenance or production issues like no product to process. Gaps in the bars show where the equipment is not being operated and you are losing precious capacity or worse consuming utilities and labor for no productivity. 

The percentage OEE, Performance Rate (PR) and Availability (AV) are shown for each piece of equipment and for your overall facility.  This laundry is running at a typical OEE for our industry, showing that the employees are doing a good job (98% overall performance), but the equipment is only available for 34% of the time, resulting in an OEE = 34%.  Another way to look at this is your laundry is not using 68% of its scheduled capacity. Imagine how much your profit improve if you halved your cost per lb?

Learn more about the new visual workplace by requesting a demo with our team!

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* Overall Equipment Effectiveness (OEE) = Availability x Performance Rate x Quality Rate  

Availability = Time Equipment is Producing / Time Scheduled

Performance Rate is the weighted % performance against standard for employees