Focus on OEE Mastery: Part 5 – When “Pushing Production” Costs You OEE Points

While pushing for greater efficiency is admirable, unrealistic production schedules, fueled by a short-term focus on output, negatively impact your factory floor.

These schedules become the root cause for a long list of issues that unexpectedly erode your Overall Equipment Effectiveness (OEE). They create operational chaos, strain your workforce, and ultimately damage your bottom line.

Imagine this: Your team receives a last-minute rush order for a high-value client. Eager to please, you squeeze it into an already packed schedule. This forces operators to rush through setups, quality checks become cursory, and machine maintenance gets deferred. The order may ship on time, but your price is hidden – excessive machine wear, a spike in quality defects, and an exhausted workforce all dragging down your OEE score.

In this fifth installment of our Focus on OEE Mastery Series, we’ll delve beyond the obvious consequences of unrealistic schedules. We’ll dissect the top 10 ways these overly ambitious plans undermine your shop floor operations. This isn’t just theory – we’ll examine plant managers’ real-world, day-to-day struggles as they grapple with impossible targets. Importantly, we’ll provide actionable strategies to mitigate these problems, allowing you to regain a sustainable, OEE-focused approach that drives true manufacturing success.

1 Excess Inventory Buildup in Specific Stages:

Unrealistic schedules often force a “push” mentality, leading to overproduction of certain components while others lag behind. The result? Bottlenecks and piles of work-in-process (WIP) inventory clogging specific stages of your manufacturing process. This disrupts the smooth workflow and inflates storage costs.

Mitigation: Level-load your production schedule. Instead of large batches on an uneven timetable, break down orders into smaller, more manageable units spread consistently over time. This improves machine utilization across the line and minimizes excess WIP buildup.

2 Lack of Buffer Time for Unexpected Events:

When schedules are jam-packed, any minor disruption – a machine breakdown, delayed material delivery, etc. – becomes a crisis. Without built-in time buffers, your entire production line is thrown off, leading to missed deadlines and rushed responses that further degrade your OEE.

Mitigation: Factor in realistic buffer times. Analyze your historical data to identify and incorporate typical downtime durations into your schedule. This creates breathing room to absorb unexpected events without causing a full-blown production halt.

3 Operator Fatigue and Stress-Induced Errors:

The constant pressure to meet unrealistic targets takes a toll on operators. Fatigue sets in, focus wanes, and the risk of errors drastically increases. These errors lead to quality defects, wasted materials, and often equipment damage – all further eroding your OEE.

Mitigation: Prioritize realistic scheduling and workforce planning. Avoid excessive overtime or reliance on a few highly-skilled operators. Implement cross-training and create a work culture emphasizing safety and well-being, not just meeting production numbers.

4 Difficulty Maintaining Traceability and Lot Control:

Rushed production under unrealistic schedules makes tracking materials, batches, and production stages incredibly difficult. This lack of visibility can lead to misrouted components, misplaced inventory, and an inability to isolate defects or implement recalls rapidly.

Mitigation: Invest in a robust traceability system. This could involve using barcode or RFID technology for real-time monitoring of materials and product movement. By doing so, you can minimize errors, expedite quality investigations, and improve your overall inventory management, all of which can contribute to a higher OEE.

5 Inaccurate Production Data and Reporting Delays:

When the priority is just getting products out the door, shortcuts in data collection and reporting abound. This leads to inaccurate OEE metrics, masking problems and hindering any meaningful performance improvement initiatives.

Mitigation: Enforce data discipline. Mandate timely and accurate data entry of downtime, quality events, and production counts. Invest in automated data collection systems, minimizing manual errors and providing real-time, actionable insights.

6 Tendency to Hoard Resources and Materials:

In an environment driven by unrealistic schedules, departments or teams often need to hoard critical resources, spare parts, or even raw materials to safeguard against potential disruptions. This siloed approach leads to wasteful duplication, inflated costs, and potential material obsolescence.

Mitigation: Build a culture of trust and cross-functional communication. Invest in a centralized inventory management system with transparent visibility across teams. Promote a collaborative approach where resources are shared to optimize overall production flow rather than stockpiling for individual gain.

7 Rush-Ordering Raw Materials and Spare Parts:

Unrealistic schedules often lead to last-minute scrambles when materials run low, or a machine fails unexpectedly. This results in costly rush orders, expedited shipping, and a reliance on less reliable suppliers, impacting both your bottom line and production continuity.

Mitigation: Proactive inventory and supplier management are key. Maintain accurate inventory levels and set reorder points based on historical usage and lead times. Diversify your supplier base and establish strong relationships for better pricing and emergency support. Implement a preventative maintenance program to reduce unexpected machine failures and the need for rushed spare parts procurement.

8 Difficulty Accommodating Engineering Change Orders (ECOs):

Rigid unrealistic schedules leave little flexibility to incorporate necessary design changes or process improvements. Engineering Change Orders (ECOs) are seen as hindrances rather than opportunities. Delays in integrating ECOs can cause production disruptions, excess rework, and scrapped materials.

Mitigation: Incorporate flexibility into your production planning. Account for potential ECOs when creating production schedules. Foster close communication between engineering and manufacturing teams to streamline the integration process and minimize disruptive impacts.

9 Increased Backorders and Stockouts:

The frantic pace imposed by unrealistic schedules makes on-time order fulfillment suffer. Customer deadlines are often missed, leading to backorders, lost sales, and a damaged reputation. Additionally, it can create stockout situations for critical finished goods.

Mitigation: Prioritize realistic lead-time commitments. Utilize historical data and current production capacity for accurate order promising. Implement a robust demand forecasting system to anticipate surges and proactively manage inventory levels.

10 Delayed Detection of Emerging Quality Issues:

In the rush to meet quotas, quality checks sometimes take a back seat. Subtle quality problems may go unnoticed, festering into significant defects further down the line. This leads to costly rework, scrap, and potential warranty claims – ultimately harming your OEE and customer satisfaction.

Mitigation: Enforce a zero-tolerance policy for quality shortcuts. Build quality inspection points directly into the production schedule at critical stages. Utilize real-time process monitoring and data analysis to detect emerging quality trends before they become major problems.

Conclusion for Senior Operations Leaders

Unrealistic production schedules, driven by a relentless focus on short-term output, inflict long-lasting damage on your manufacturing operations. While the consequences may not always be immediately obvious, they erode your OEE, causing a ripple effect of problems that hinder long-term efficiency and profitability.

By implementing the mitigation strategies discussed – leveling production loads, prioritizing flexibility, fostering data-driven decision-making, and cultivating a culture of quality – you can break free from this vicious cycle.

A sustainable focus on OEE improvement will unlock the true potential of your production lines.

How POWERS Can Help

At POWERS, we understand the complexities of modern manufacturing. Our dedicated solutions are specifically tailored to empower plant managers like you to overcome the obstacles eroding your OEE.

Real-time Visibility: POWERS provides real-time tracking and analytics on your production processes, revealing bottlenecks, hidden downtime causes, and quality trends. With this transparency, you can break the cycle of unrealistic scheduling and make data-driven decisions.
Accurate OEE Measurement: POWERS ensures your OEE calculations are comprehensive and reliable. This establishes a baseline for improvement and allows you to track the impact of your mitigation strategies over time.
Actionable Insights: POWERS goes beyond simply presenting data. Our powerful analytics engine surfaces actionable insights that guide you towards schedule optimization, preventative maintenance, and proactive quality control.

Break free from the strain of unrealistic schedules and see the difference a data-driven, OEE-focused approach makes. Optimize your manufacturing processes and achieve unprecedented efficiency. Contact POWERS today: