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Shortcomings of OEE

As the field of smart manufacturing continues to evolve, it is becoming increasingly clear that relying on OEE alone may not provide a comprehensive picture of an organization's achievements in smart manufacturing. The assessment of smart manufacturing should not be limited to OEE alone; companies should have a broader perspective to encourage continuous development and innovation.

The shortcomings of OEE are mainly:

Lack of supply chain metrics - OEE, while improving the efficiency of individual machines, ignores the tight integration of the manufacturing process with the supply chain system.

Neglect of Human Factors - Skilled and motivated employees have a significant impact on improving processes and productivity, and OEE does not cover these factors.

Ignoring Environmental Factors - Sustainability is critical for manufacturers and they should consider the impact of their operations on the environment; OEE does not consider aspects such as resource utilization, energy conservation, or waste reduction.

To effectively analyze smart manufacturing initiatives, assess raw material readiness, understand employee skills, and drive sustainability, manufacturers should adopt more comprehensive KPIs.

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