Modern Machine Shop

NOV 2017

Modern Machine Shop is focused on all aspects of metalworking technology - Providing the new product technologies; process solutions; supplier listings; business management; networking; and event information that companies need to be competitive.

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Page 93 of 196 November 2017 MMS 91 FEATURE of the most prominent "readings" of machine per formance provided by almost all machine- monitoring systems. Mr. Edstrom provided another angle on OEE: f inancial OEE (FOEE ). In fact, Financial OEE is a trademarked name for a feature Memex plans to release in early 2018 as an addi- tional solution for those customers who have the MERLIN Tempus Enterprise Edition (EE), a scal- able, extensible and open manufacturing execu- tion system platform. Mr. Edstrom is the CEO/CTO for Virtual Photons Electrons. In 2006, while at Sun Microsystems, he helped create the vision and framework for MTConnect, the set of interoperability standards for translating machine data into a common, internet-based language. He served as president and chairman of the board for the MTConnect Institute from 2010 to 2014 and was the CTO for Memex for three years. Mr. Edstrom was asked to talk about how OEE could be linked to information about financial results, because the concept of FOEE shows that machine per formance data has value to decision-makers in the front office from a busi- ness management perspective. Analyzing FOEE helps a shop understand how machine perfor- mance is helping (or hur ting) profitability. This insight keeps the focus on the most appropriate productivity improvement efforts. Mr. Edstrom began by defining OEE as a simple mathematical formula. It multiplies the percent- ages of availability, performance and quality to yield a single percentage. This result enables similar units (one machine, one department, one plant or an entire enterprise) to be compared to or rated against a target such as a plant's best record or a benchmark of world-class performance. However, shops and plants must also focus on profitability. Managers have to balance decisions about maximizing the part-making capability of their equipment with decisions about the money- making potential of this equipment. OEE ratings alone provide an incomplete picture. FOEE answers the question, "What is the value of improving OEE on this particular machine for this par ticular product?" More to the point, it answers "How much profit is being lef t on the table by not per forming at company-best or industry-best levels for that specific part?" FOEE requires three key financial input values for each Dave Edstrom presented this slide outlining what he called a road map for data-driven manufactur- ing. He stressed that the ultimate goal is to leverage shopfloor information to improve decisions about the strategic direction of the company. MachineMetrics, call 413-341-57547 or visit Memex, call 866-573-3895 or visit Refresh Your Memory, call 866-796-4362 or visit

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