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Manufacturing journalist TR Cutler profiles the OEE Calculator

Manufacturing journalist, TR Cutler, recently profiled the OEE Calculator by Memex Automation for Industrial Electronics Today.

The leading OEE (overall equipment effectiveness) Calculator, quantifies the increase in Income From Operations (IFO or EBITDA) for Same Sales Volume and Sell Everything scenarios for various improvement criteria. The OEE ROI calculator is a very preliminary ‘rough cut’ analysis tool for developing a business case (to engage real-time manufacturing performance data for shop floor machines in manufacturing plants). Part of the reason Calculator is ‘rough’ is because a Plant average is used for several important parameters such as OEE, shift output, and quality rate.

Much greater precision can be developed by using actual OEE data differentiated by product run and by work station. Future monitoring and proactive use of the information provided by an installed system significantly improves accuracy of alternatives; these data assists leadership teams in setting direction and focus to maximize results quickly. Rattray noted that, “First Look results are generated using Small, Medium and Large preselected productivity improvements to show the range of possible results.”

The current input values in the OEE Calculator, use hypothetical but realistic values for a machine tool plant. It is estimated that for most manufacturing plants, the Calculator results have a confidence level of eighty-five percent (85%), plus or minus three percent (3%.)

The OEE Calculator does not apply the Theory of Constraints (TOC) therefore, if the proper application of tools and OEE improvement is not achieved at the constraint, then the increase to IFO is also limited. The quality factor usually has more impact than Availability or Speed Factor for bottom line improvement. When waste or scrap is improved, OEE improves; the result, less material needed. It is important to apply Lean Six Sigma techniques to your manufacturing operations, so as to achieve significant results. Memex offers services in this area, as documented in our website.

Memex suggests that users of the OEE Calculator, “Closely account for the change in material since it determines the new amount of total units made and applies the base case unit material cost to the total number of new units required to make the good units for the associated scenario.” The Calculator zeroes all of the improvement parameters and individually examines what one (1) OEE point improvement is worth for Availability, Speed Rate, and Quality. This data provides the user an approximation of financial impact on IFO for types of improvement activities.

Memex Automation Talks Benefits of Direct Numerical Control Software

Originally published online by SBW!RE.  Link to full article here.

According to John Rattray of Memex Automation, “By monitoring assets such as tooling, raw materials, Work In Progress, computers, vehicles and any moveable assets, companies can know quickly, exactly, and securely where assets are located. Direct Numerical Control Software (DNC) improves machines operational performance and increases shop floor productivity.”

DNC Software for Windows 7, Vista, Windows XP and others is a 32-bit multi-threaded communications & file management system allowing simultaneous upload and download to multiple CNC controls. It includes a CNC Editor, Backplotter and many other utilities and features. DNC Software is easily connected to CAD/CAM systems over industry standard networks and is available in a Client-Server configuration. Besides machine tool DNC communications, other shop floor data can be collected from shop terminals, tool pre-setters, bar code equipment or SPC systems.

2009 was a Banner Year!

Much work was done in 2009 with new product development and many customer deployments. The flagship OEE+DNC product was rolled out this year.

Many customers offered to work with us to evaluate its merits as well as many aerospace customers, including one in a corporate wide multi-plant rollout into production.  Going into 2010 we are working with about 2 dozen customers in various stages of deployment with this enterprise product offering 5-20% increase in productivity at the shop floor.

Memex’s engineering team continued in its reputation as the “Go To machine technology company”, and rolled out many new hardware and software products in 2009, from memory boards, the Ax750 I/O Link – Fanuc Interface Board, Ax2200HS High Speed File Server, AxDNC and AxConfig software tools and many other items.

Although it was a tough year for our manufacturing industry, our business paradigm of offering tools to increase efficiency was in demand, and we responded with solutions, attending trade shows, industry association events and delivering customer successes.

Company-wise, thanks to some timely positioning of resources, our investors and our employees along with our distribution channel are very pleased and we are ready to roll for 2010!

MEMEX - Measuring Manufacturing Excellence Logo

Memex OEE+DNC Increases Productivity and Lowers Costs for U.S. Aerospace Customers

Memex announces that many new aerospace consumers in the USA and throughout North America have chosen our products to monitor and control their machines on the shop floor. They are utilizing Memex’s complete system to address their OEE and DNC requirements. This gives them the ability to monitor production status, run time, down time reasons, reject causes in real time and automatically report on OEE accurately. They have control of their part programs with Memex’s newly re-designed, state of the art DNC software, called AxDNC. Work orders on the floor are managed through Memex’s OEE+DNC and can be integrated to their ERP systems as well as their CAD/CAM part programs and HR reporting.

MEMEX - Measuring Manufacturing Excellence Logo

Aerospace Customer Chooses Memex Complete OEE+DNC System

Memex announces a new aerospace customer that has gone live in production to monitor and control the machines on the shop floor in its plants in North America. They are utilizing Memex’s complete system to address their OEE and DNC requirements. This gives them the ability to monitor production status, run time, down time reasons, reject causes in real time and automatically report on OEE accurately. In addition, they have control of their part programs with Memex’s completely re-designed, state of the art, new DNC software, called AxDNC. Work orders on the floor are managed through Memex’s OEE+DNC and are integrated to their Baan ERP system as well as their CAD/CAM part programs and HR reporting.

This project has taken over 1 year to deploy due to the number of plants and machines as well as the development of enhanced integrated OEE+DNC functionality. This customer uses Memex’s entire mainstay solution of hardware, firmware and software system, including configuration utilities, to monitor their plant and depends on Memex’s file transfer capabilities to reliably transfer all of their metal cutting programs to the shop floor. The benefits to the customer are significant in terms of efficiency of operations, with potential improvements at the shop floor of up to 20%. Connectivity of their machines to the enterprise network allows them to do many more operations as well as the machines now have on-board OEE+DNC with additional memory and functionality. Corporate level visibility of OEE and production ensures effective management of operations assisting in delivering quality products on time for their customers.