Improve Manufacturing OEE with IoT Analytics


Streamline Manufacturing Processes with IoT Analytics

When seeking ways to improve manufacturing processes, IoT and business analytics can be powerful tools. In this blog, we’re taking a look at how these solutions can help businesses improve their Overall Equipment Effectiveness (OEE) by leveraging these two things. 

With these resources applied strategically in partnership with Skylytics, a dedicated continuous intelligence provider, manufacturers like you can make informed business decisions faster than ever before. 

How OEE measures manufacturing efficiency 

Continually improving your manufacturing processes is essential to stay competitive, increase profits, attract new business, and retain existing customers. 

OEE, or Overall Equipment Effectiveness, is a metric used to measure manufacturing efficiency which takes into account three factors: 

  • Availability: Are the machines working properly and ready to use?
  • Performance: Are machines running fast enough without delays or breakdowns? Or are they in need of maintenance?
  • Quality: Do the manufactured parts meet quality standards the first time or do they need to be reworked? 

By measuring these three areas, OEE gives manufacturers a comprehensive understanding of how well their equipment is being used and how effective their processes are. Simply put, OEE helps you identify areas for improvement so that you can optimize your operations and ultimately increase your bottom line.

Manufacturing OEE score benchmarks

Overall Equipment Effectiveness is a calculation of Availability x Quality x Performance. 

Here are benchmarks for reference: 

  • 100% OEE means you are manufacturing good parts with no downtime. This is nearly impossible to obtain but always worth striving for.
  • 85% or above is considered a world-class OEE score for discrete manufacturers. This is an exceptional score and is difficult to attain. 
  • 60% OEE reveals that there is room for improvement in your manufacturing processes, but is considered average for discrete manufacturers. 
  • 40% OEE often means that a manufacturing company is just starting to track the effectiveness of their processes. It’s recommended to address the largest issues first in order to improve. 

Most companies should aim for an OEE score of at least 85%. But according to, most manufacturing companies have scores closer to 60%. 

Leveraging IoT sensors in manufacturing for data collection

Manufacturing companies looking for ways to gain a competitive edge must capture and analyze their business data. One approach that has gained significant traction in recent years is leveraging IoT sensors for data collection and analysis. 

These sensors allow manufacturers to collect vital business information in real time without needing human intervention. With a proven IoT solution provider, your business can make more informed decisions based on accurate, up-to-date data. Below is an example of Skylytics’ real-time IoT dashboard: 

Data collected through the sensors can be used to reduce costs and gain a deeper understanding into where improvements are needed. If you're struggling to stay ahead of the competition, it's time to start thinking about how IoT solutions can help you make strategic improvements. And Skylytics is here to help.

Use manufacturing analytics to improve machine reliability  

If your OEE score is low, one of the best ways to improve is by focusing on machine reliability. IoT platforms collect data from equipment sensors to predict when maintenance should be completed to prevent issues before they occur.

Here are just a few of the benefits IoT analytics can offer:

  • Real-time equipment monitoring: IoT devices can continuously monitor machinery performance in real-time. Sensors collect data on various parameters like temperature, vibration, humidity, and pressure. This ongoing monitoring helps identify any deviations from the normal operating conditions.
  • Predictive analysis: The data collected by IoT devices is analyzed using advanced analytics and machine learning algorithms. This analysis can predict potential equipment failures before they occur based on patterns and trends in the data.
  • Improving machine lifespan: Regular and timely maintenance based on accurate predictions can extend machine lifespan. It also ensures that machines are running at their optimal capacity, improving both productivity and reliability.
  • Cost savings: Predictive maintenance helps avoid costly repairs and downtime by addressing issues before they become major problems. It also reduces the expenditure on routine or unnecessary maintenance.
  • Enhanced safety: Predictive maintenance can also improve safety by identifying potential equipment failures that could pose risks to workers.

With IoT data, you can transform how your business maintains and manages machinery.

Discover the benefits of IoT at your business

Ultimately, integrating IoT analytics into your manufacturing processes is essential for staying competitive. With the help of IoT, your business can monitor performance in real-time and gain better insights into your production processes. 

Concerned your manufacturing equipment is too old school to provide the data you need? Skylytics works with hardware partners around the world to source the best possible solutions for every situation.

Not sure how to get started? At Skylytics, we offer a complete range of IoT and data analytics services to support your manufacturing business from ideation through to solution deployment. Contact us today to bridge the gap between your business and the data that can enhance your operations.

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