Malaysia’s industrial production is growing steadily after the challenges of the global pandemic. Is your company keeping up?

Optimizing your overall equipment efficiency (OEE) is key to staying competitive. To do this, your company needs to be part of Industry 4.0.

Industry 4.0 refers to smart manufacturing. It describes the growth of automation and data exchange in manufacturing technology and processes. Industry 4.0 is revolutionizing how companies manufacture, modify, and distribute their products.

IoT solutions are a cornerstone of your Industry 4.0 transformation. Helping to improve your OEE is one of the key benefits of IoT.

Learn more about OEE and the IoT solution options that will help you optimize it below.

Internet of Things Solutions and Industry 4.0

The internet of things (IoT) is a vital part of Industry 4.0. It enables the collection, monitoring, exchange, and analysis of data.

This data helps connected devices make better decisions. Machines can take on and automate more tasks.

The internet of things (IoT) often refers to the network of smart consumer devices that connect and share data through the internet.

In an industrial context, the internet of things uses smart sensors and actuators to improve manufacturing and industrial processes. It relies on smart machines and real-time analytics to use data more effectively. The industrial IoT incorporates machine-to-machine communication, big data, and machine learning.

Setting an OEE Goal for Your Facility

Improving efficiency in your facilities is critical for the success of your business. It’s an integral part of your Industry 4.0 transition. The IoT gives you valuable tools to increase productivity and work more efficiently.

You need a way to quantify efficiency to set goals and measure progress. Overall equipment effectiveness (OEE) gives you this standard.

What Is OEE?

OEE measures production efficiency. It’s the percentage of total operating time that a machine runs at full capacity and optimal production. Seiichi Nakajima introduced the concept of OEE in the 1970s while at the Japanese Institute of Plant Maintenance.

OEE has three components: availability, performance, and quality.

Availability compares the amount of time a machine or line should be available with the actual time it’s up and running. Performance compares the optimal operating speed of the machine to its actual speed. Quality measures the number of products that don’t meet quality standards.

Each factor is usually given as a percentage. Multiplying these rates gives you the OEE.

An OEE score of 100% means you’re producing only good parts at optimal speed with no down time. A score of 100% is quite rare.

World-Class Goals for OEE

Seiichi Nakajima defined “world-class” numbers for OEE. He based these percentages on his practical experience. They can serve as a goal for manufacturers.

The goal percentages are:

• Availability: 90%
• Performance: 95%
• Quality: 99%

These figures lead to an OEE score of 85%. Many manufacturing companies today have an OEE score closer to 60%.

When setting an OEE goal, you want a target that will motivate steady improvement in your processes. The goal should be achievable with the effort from your team.

IoT Solutions for Improving OEE

Each component of OEE has two main problem areas that reduce efficiency. IoT solutions can help you minimize the impacts of these losses.

Availability Losses

Unplanned downtime and planned downtime are the main factors that reduce availability. Unplanned downtime can result from breakdowns or material shortages. Planned downtime includes equipment setup, changeovers, or maintenance.

IoT Solutions for Unplanned Downtime

One main IoT application is preventive maintenance. It’s ideal for reducing unplanned downtime.

For example, machine learning can analyze operational data like temperature and motor vibrations. It can identify common factors that occur before a breakdown. It can then predict future breakdowns so operators can service equipment before a problem happens.

IoT sensors can reduce downtime by tracking supply levels in real-time. You can avoid running out of materials.

IoT Solutions for Planned Downtime

IoT sensors can reduce the need for manual inspections of machinery. The data helps ensure you only perform maintenance when it’s necessary.

Data will also show if certain operators or teams take longer to perform changeovers. You can implement additional training to improve uptime.

Performance Losses

Minor stops are the first type of performance loss. These are problems that resolve quickly, like misfeeds or material jams.

Reduced equipment speed also lowers efficiency. It can result from machine wear and tear, poor lubrication, or environmental conditions.

IoT Solutions for Performance Losses

Minor stops are short individual events. They add up, though. IoT sensors help you see their true impact.

You can identify where recurring problems happen and make corrections.

IoT sensors give you data on machine speed. If equipment runs slowly, you have additional data to determine the cause. You can then make the necessary adjustments to restore performance.

Quality Losses

Process defects and startup losses are two factors that reduce quality. Process defects happen when products don’t meet quality standards during production. Equipment issues and environmental conditions are possible causes.

Startup losses happen between the warmup and steady-state production phase of equipment. A certain amount of startup loss is inevitable. You can minimize this amount, though.

IoT Solutions for Quality Losses

The IoT offers several solutions for process defects. Automated inspection systems can see if products meet specifications. The IoT enables equipment to send alerts if variations from prescribed parameters occur.

Calibrations and upgrades can often be done remotely.

The IoT provides data about various factors along the production line. Comparing this data with defects as they occur can show where adjustments are necessary.

Sensor data can also show if certain startup conditions create more defects. This data can suggest ways to address the issues.

Start Optimizing OEE with Internet of Things Solutions

IoT solutions give you many ways to optimize OEE. Data from connected machines can help avoid downtime, improve equipment performance, and reduce quality issues. The right IoT solution provider can help you start implementing IoT to improve efficiency.

DNC Automation is a leading automation company in Malaysia. We work with Siemens, B&R, Xinje and Kingview Scada to optimize OEE through cloud-based IoT or Scada wed servers to help manufacturers collect machine process data and improve productivity.

Contact us today to learn how our IoT solutions can benefit your business.