Published: April 17, 2025 Updated: April 11, 2025
How to Improve Equipment Efficiency and Effectiveness
To achieve success in business, you need assets to operate with maximum efficiency. Many obstacles stand in your way. Unplanned downtime. Low quantities of inventory. Lack of trained maintenance technicians.
However, you can solve the above challenges to improve equipment efficiency. Let's back up a step and look at the efficiency itself.
- Key Metrics for Measuring Equipment Efficiency and Performance.
- Understanding the Difference Between Productivity and Efficiency.
- What Is Overall Equipment Effectiveness?
- How a CMMS Improves Equipment Efficiency.
Machine or equipment efficiency refers to the ability of a machine to convert resources (energy, raw materials, time) into usable output with minimal waste. By effectively measuring and optimizing machine efficiency, businesses can reap significant benefits, including:
- Reduced production costs: Less wasted energy, materials, and downtime leads to lower operational expenses.
- Increased output: Efficient machines produce more units within a given timeframe.
- Improved product quality: Consistent machine performance minimizes defects and ensures consistent product quality.
- Enhanced safety: Well-maintained machines have fewer breakdown incidents. This creates a safer work environment.
Key Metrics for Measuring Equipment Efficiency and Performance
Let's highlight a few ways with examples.
1. Overall Run Time (ORT):
Formula: ORT (%) = (Total Time - Downtime) / Total Time x 100
Example 1: In an 8-hour shift (480 minutes), a machine experiences 30 minutes of downtime for maintenance. ORT = [(480 minutes - 30 minutes) / 480 minutes] x 100 = 93.75%
Example 2: A packaging machine runs for 10 hours straight with no downtime. ORT = (10 hours / 10 hours) x 100 = 100%
Use this formula in whatever time range fits your company's needs. You could calculate a percentage for a particular month, quarterly, or even annually.
2. Performance Efficiency (PE):
Formula: PE (%) = (Actual Output / Ideal Output) x 100
Example 1: You expect a bottling machine to produce 1000 bottles per hour. In reality, it produces 950 bottles per hour. PE = (950 bottles / 1000 bottles) x 100 = 95%
Example 2: A computer numerical control (CNC) machine can theoretically cut 20 metal sheets per hour. Due to a dull cutting tool, it manages only 18 sheets per hour. PE = (18 sheets / 20 sheets) x 100 = 90%
Understanding the Difference Between Productivity and Efficiency
In the second measurement from above, you looked at outcome or performance. The ideal outcome versus the actual outcome. From there, you'd investigate the root causes for the lower outcome.
However, we come to an ongoing discussion. What do we mean when we talk about productivity and efficiency? You need to realize the distinctions between them.
Efficiency focuses on minimizing waste. Productivity measures the total output within a specific timeframe.
Can they work together? Or course. You have to find the balance between them. For example, Machine A produces 40 widgets per hour. You determine that's 100% efficient.
However, if Machine B produces twice as many widgets in the same time, you now judge the first machine as unproductive.
Another example: Machine B produces those 80 widgets but uses more resources and energy than Machine A. Do you now determine that Machine A has more efficiency?
What Is Overall Equipment Effectiveness (OEE)?
Maintenance technicians use this comprehensive metric that takes into account all the factors affecting machine output. It multiplies three individual efficiency measures:
Availability (A): The percentage of planned production time the machine is operational (considering downtime for scheduled maintenance, repairs, and setups).
Performance (P): This refers to the machine's ability to produce at its rated speed (as measured by PE).
Quality (Q): This represents the percentage of good units produced compared to the total output (excluding rejects).
Calculating OEE:
OEE (%) = Availability (%) x Performance (%) x Quality (%)
Example: Let's consider a machine with an ORT of 90%, a PE of 95%, and a quality rate of 98%.
Availability (A) = 90% (considering downtime factors)
Performance (P) = 95% (as measured by PE)
Quality (Q) = 98% (percentage of good units)
OEE = 90% x 95% x 98% = 84.6%
This OEE value indicates that the machine uses 84.6% of its potential output due to a combination of downtime, reduced speed, and production of some rejects.
By monitoring and analyzing OEE, businesses can identify areas for improvement. For instance, if you have low OEE due to high downtime, focusing on preventive maintenance strategies can be beneficial. Conversely, if you blame the low OEE on poor quality, investigate the root cause of rejects (e.g., faulty raw materials, improper machine settings).
For a further discussion on OEE, read this article.
Discover how streamlined maintenance processes can elevate production. Learn more.
How a CMMS Improves Equipment Efficiency and Maintenance Workflow
What can this software do to improve equipment efficiency?
Asset Management: You have a central database for your asset records. With easy access to details, you understand everything about each machine. It keeps a history of maintenance, equipment readings, cost, depreciation, and more.
Preventive Maintenance Scheduling: A CMMS allows for scheduling routine maintenance tasks based on manufacturer recommendations or machine operating hours. This proactive approach helps prevent unexpected breakdowns and ensures optimal machine performance.
Work Order Management: The system facilitates the creation, assignment, and tracking of work orders. As mentioned above, Technicians can access detailed information about the machine, maintenance procedures, and spare parts needed, all in one central location. This reduces downtime by ensuring technicians have the necessary resources readily available.
Inventory Management: I mentioned that part of efficiency relates to lack of stock. A CMMS helps track spare parts inventory levels. Set up correctly, it will automatically trigger purchase orders when the stock reaches a predefined minimum. This minimizes delays due to unavailable parts and ensures smooth maintenance operations.
Data Analysis and Reporting: A CMMS collects data on machine performance, maintenance history, and repair costs. You analyze this data to identify recurring problems, predict potential failures, and optimize maintenance strategies for improved efficiency.
Example 1: Reducing Downtime with Preventive Maintenance
A manufacturing facility uses a CMMS to schedule regular preventive maintenance for its CNC machines. The CMMS generates work orders for tasks like oil changes, filter replacements, and tool inspections. By proactively addressing potential issues, the facility experiences fewer unexpected breakdowns. This leads to increased uptime and improved OEE.
Example 2: Optimizing Maintenance Resources with Work Order Management
A food processing plant utilizes a CMMS to manage work orders for its packaging machines. When a malfunction occurs, a supervisor creates a work order detailing the problem. The technician sets a priority, assigns inventory, and dispatches the work order to the technician or crew involved.
This streamlined process ensures technicians have the information and resources needed to complete repairs efficiently, minimizing downtime and production losses.
Improve Equipment Efficiency and Effectiveness with MAPCON
To improve equipment efficiency, you need to correctly measure it, determine causes for low percentages, and implement solutions to rectify the situation.
Part of those solutions includes understanding ORT, PE, and OEE. CMMS software also can enhance your operations. By combining effective measurement techniques with a quality CMMS system, businesses can ensure their machines run smoothly, and efficiently, and contribute to a successful and productive operation.
For the best in CMMS software, call 800-922-4336. Schedule a free demonstration today.
MAPCON CMMS software empowers you to plan and execute PM tasks flawlessly, thanks to its wealth of features and customizable options. Want to see it for yourself? Click the button below to get your FREE 30-day trial of MAPCON!
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