PackNet Report Software

What is Overall Equipment Effectiveness (OEE) and How Does It Relate To Reporting?

In the shipping and packaging industry, efficiency and quality are crucial factors for success. Customers expect their orders to be delivered on time, in good condition, and at a reasonable cost. To achieve these goals, shipping and packaging companies need to optimize their overall equipment effectiveness (OEE), which is a measure of how well they utilize their assets, processes, and personnel.

OEE is calculated by multiplying three components: availability, performance, and quality. Availability is the percentage of time that the equipment is ready to operate. Performance is the ratio of the actual output to the maximum possible output. Quality is the proportion of defect-free products that meet the customer’s specifications. By improving any of these components, shipping and packaging companies can increase their OEE and gain a competitive edge in the market.

By improving OEE companies can:

• Reduce waste and downtime: By minimizing machine breakdowns, setup times, and idle times, companies can reduce the amount of wasted materials, energy, and labor. This also helps to avoid delays and penalties for late deliveries.
• Increase productivity and profitability: By maximizing equipment output and speed, companies can increase their throughput and revenue. This also helps to lower the unit cost and improve the profit margin.
• Enhance quality and customer satisfaction: By ensuring equipment accuracy and consistency, companies can reduce the number of defects and reworks. This also helps to meet or exceed customer expectations and build loyalty and trust.

Modern organizations must optimize their overall equipment effectiveness to stay competitive. Packsize offers a best-in-class reporting package called PackNet Report to help companies to monitor, and measure, their OEE goals.