OEE Software - criteria for the optimal decision

Let's explore the most important aspects of OEE software and find out which architecture is best suited to your company:

• Why is OEE software important?
• For beginners: Microsoft Excel as “OEE software”
• Why are companies switching to professional OEE software?
• Important criteria when selecting OEE software
• OEE software architectures
  • Cloud-native OEE products
  • On-premises OEE solutions
  • Edge computing OEE solutions
• Software-as-a-Service (SaaS) - get started today
• Further information

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Why is OEE software important?

OEE software (Overall Equipment Effectiveness software) is an indispensable tool for maximizing overall equipment effectiveness in modern manufacturing companies. This software automates data collection, analyzes key production figures and quickly identifies optimization potential in the areas of availability, performance and quality. By using OEE software, production processes can be designed more quickly, accurately and efficiently, costs can be reduced and productivity can be significantly increased.

With OEE software, companies can monitor important data in real time, improve the performance of their systems and optimize their entire value chain.

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For beginners: Microsoft Excel as “OEE software”

Some companies start their OEE calculations with Microsoft Excel. This widely used spreadsheet software is inexpensive and easy to access. Excel makes it possible to perform basic OEE calculations quickly and without a high initial investment. This makes Excel a flexible and accessible entry point for calculating OEE factors and the OEE ratio as well as other key figures. However, companies quickly reach their limits.

Here is an overview of the advantages and disadvantages of Excel as an OEE tool:

Advantages of Excel as an OEE tool

1. Cost-effective and immediately available: Excel is already available in most companies and does not incur any additional license costs.
2. Flexibility: Companies can customize Excel to their individual needs and create specific OEE reports.
3. Easy to use: Since many employees are already familiar with Excel, no extensive training is required.
4. Quick start: Companies can immediately begin with manual OEE data collection without having to put up with the effort and delays caused by interfaces.

Disadvantages of Excel as an OEE tool

1. Manual data entry: Excel requires the manual entry of production data, which is prone to errors and increases the workload.
2. Limited scalability: With increasing production complexity and multiple production lines, Excel quickly becomes inefficient.
3. Lack of real-time data: Excel offers no automation and no way to automatically capture data from machines. The result: an incomplete and untrustworthy data basis
4. Limited collaboration: Using Excel in teams can be complicated, especially with multiple users or locations.

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Why are companies switching to professional OEE software?

Companies that start with Excel often recognize the need to switch to professional OEE software within 12 months. The number of systems and machines, different products and cycle rates, production complexity, the need for trustworthy and accurate real-time data and the resulting need for automated data collection quickly lead to the realization that Microsoft Excel is not sufficient as an OEE tool for manufacturing companies in practice.

Professional OEE software offers considerable advantages over Excel:

• Automated data acquisition continuously ensures trustworthy raw data and therefore a digital image. This is a basic prerequisite for accurate decision-making.
• Only real-time data enables immediate notifications and reactions to prevent losses of any kind
• Seamless integration into any existing traditional MES solutions and superimposed ERP systems saves time and resources.
• Comprehensive dashboards provide deeper insights into key production figures and enable faster optimization measures.
• Optimal communication through access to the same database, which is available to all participants.
• Professional analyses, additional key figures and automated (e-mail) reporting support your entire team in recognizing potential quickly and easily.
  
  
  For small companies and simple productions, Excel may be sufficient as an introduction to OEE measurement. However, as complexity and requirements increase, professional OEE software becomes indispensable. 
  

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OEE Essentials - umfassend, fundiert und praxisnah

Alles was Sie zu OEE wissen müssen!

Transparenz und Kennzahlen innerhalb kürzester Zeit

Produktionsleistung mit OEE-Strategien steigern

OEE-Berechnungsfehler vermeiden

Einblicke in branchenspezifische OEE-Benchmarks

OEE-Software für den professionellen Einsatz

Important criteria when selecting OEE software

In addition to the factors already mentioned, other decisive criteria should be taken into account when selecting OEE software to ensure the long-term success of the implementation.

Simple and fast connection to systems and machines as well as cost efficiency in particular play a central role in the selection of OEE software in order to achieve a quick return on investment (ROI). 

1. 1. Data acquisition: quality, reliability, simplicity and flexibility

      • Systems, machines and workstations are the sources of process data and events that are used to calculate OEE and other key figures. The quality and reliability of the data must be absolutely reliable and trustworthy - otherwise all information based on it is dubious or, in the worst case, simply wrong!
        Worauf Sie unbedingt achten sollten:
        
        • Reliable and robust mechanisms for data acquisition
        • Simple connection of systems, machines and workstations - preferably in-house
        • Support for the usual industry standards: digital signals, OPC-UA, MQTT, Modbus, ...
        • Support for high signal frequencies - especially for fast processes 
        • Filters and algorithms during data acquisition for maximum data quality
        • Local intermediate storage to ensure seamless data histories
          
          
      • Digitization effort
        The effort required for digitization, i.e. the connection of a physical unit and its digital representation, is another important differentiating feature. Ideally, modern professional OEE software enables an end customer to carry out the digitization themselves - a decisive factor in the overall cost analysis!
        
        
      • Flexibility in connecting machines: Modern OEE software must support a wide variety of machine types and protocols in order to be used in a heterogeneous environment.
        
        
   2. Functionality and adaptability
      
      
      • OEE core functions:
        The OEE software must be able to precisely calculate the OEE key figure and its factors (availability, performance and quality) from the raw data and display and evaluate them as required using different views, sequences and dependencies (product, shift, etc.). Ideally, other production-relevant key figures should be included in the scope of functions.
        
        
      • Adaptability
        Even if OEE is actually subject to a standard definition, in practice there are customer-specific views. The software must therefore be flexible enough to adapt to customer-specific circumstances. It must support both small and large-scale production environments.
        
        
   3. User friendliness
      
      
      • Intuitive operation
        Employees must be able to operate the software without a great deal of training. An easy-to-understand user interface facilitates daily use. Tool tips should be available to avoid time-consuming searches in the manual.
        
        
      • Customizable dashboards and reporting
        The OEE software should offer visual displays and real-time dashboards that can be customized to the company's needs in order to present process values and key figures in an understandable way.
        
        

   4. Scalability

      • Scalability
        Whether it's just one plant/machine, a small production line, large factory or even multiple production sites, the OEE software must be able to grow as the business grows without compromising performance.
        
        

   5. Integration

      • Seamless integration: The OEE software should be easily integrated with ERP systems and, if necessary, with existing local MES and SCADA systems in order to enable an automated and error-free data flow across all information levels. Modern OEE software provides REST APIs interfaces for this purpose.
        
        

   6. Costs

      • OEE Software-as-a-Service
        Subscription-based OEE software (SaaS) is a relatively new and modern business model. It is characterized by very low costs (OPEX = operating costs), avoids investments (CAPEX) and minimizes risks. Cloud-native OEE products also mean that productive OEE software is available almost immediately.
        
        
      • OEE solution as a project
        For decades, OEE software was traditionally introduced as part of a project as a local installation (on-premises). Investment costs (CAPEX) as well as maintenance and expansion costs are considerable. It takes weeks before the OEE software can be used productively.
        
        
   7. Cyber security
      
      When deciding on OEE software, consider whether your company is in a position to provide cyber security that can permanently and reliably defend against attacks at a high level. An aspect that is becoming increasingly important! 

OEE software architectures

Overall Equipment Effectiveness (OEE) has been a central concept in production management since the 1960s. With the advent of modern software technologies, the way in which OEE is monitored and analyzed has also changed considerably. The development of OEE software can be divided into three central architecture phases:

1. On-premise architectures (1990s to early 2000s)

   In the early days of OEE software, on-premise solutions were used that were installed directly on the servers of manufacturing companies. These systems were often individually tailored to the needs of the factory, but were expensive to implement and maintain. The data was stored locally and often entered manually or imported via PLCs (programmable logic controllers).
   
   

2. Client-server architectures (2000s to 2010s)

   As factories became increasingly networked, client-server architectures emerged where data was collected in a central database on a server and accessed from multiple clients (workstations). These systems improved data availability and analysis as they could aggregate real-time data from machines, but they remained reliant on on-site infrastructure.
   
   

3. Cloud-native architectures (since the 2010s)

   In recent years, cloud technology has initiated a massive transformation of OEE software. Cloud-native OEE solutions offer scalability, flexibility and lower costs. Data is stored in the cloud and can be accessed and analyzed in real time from any location. These solutions enable deeper integration of IoT (Internet of Things) devices and provide comprehensive analytics with big data and machine learning.

Future trends

In the future, OEE systems will increasingly be embedded in networked production environments such as smart factories and supplemented by artificial intelligence (AI). This will lead to even more precise predictions and better decisions in real time.

The evolution of OEE architectures reflects the technological development of the industry and shows how important flexibility, accessibility and integration into modern production environments have become. In the following, we briefly discuss the main advantages and disadvantages of the most common OEE software architectures currently on the market. 

• Cloud-native OEE products

  • Features: This software is available globally and is provided as Software-as-a-Service (SaaS) via the Internet immediately after booking the OEE service, i.e. it can be used immediately. 
    The software is usually hosted by an international cloud service provider (Microsoft, Amazon, Google). Users access it via web browsers or mobile apps.
    
    
  • Advantages: 
    
    • Fast system availability
      Ready for use within a few hours of ordering.
    • Scalability under your own control
      Unlimited scalability to cope with growing data volumes and user requirements.
    • Costs
      No or only low initial investment; usage-based billing.
      Depending on the provider: from EUR 500 per month / monthly flat rate per work.
    • Access and flexibility
      Access from anywhere and at any time via the Internet. Customization on your own.
    • Maintenance and updates
      Automatic updates and maintenance by the provider, no downtime.
    • Security / Cyber-Security
      Sophisticated security protocols and regular security updates by the provider.
    • Integration and interoperability
      Easy integration with other cloud-based tools and on-premises systems, flexible APIs.
    • Data recovery and backup
      Automatic data backup and easy recovery by cloud provider
    • Performance and availability
      High availability and high-performance computing resources thanks to globally distributed data centers
    • Innovation and further development
      Rapid introduction of new functions and technologies by the provider
    • Environmental friendliness
      Improved energy efficiency and reduced carbon footprint through optimized use of computing resources.
    
    Most cost-effective entry into the digitalization, OEE and optimization process. Monthly or annual SaaS subscription, which is directly accounted for as OPEX costs. Additional functions (MDE, BDE, energy, process data, ...) can be easily booked at a later date.
• • Disadvantages: Occasional speculative data security concerns encountered with traditional IT departments. 
    
    
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• On-premises OEE solutions

  • Features: The software is installed and operated directly on the company's servers or on dedicated hardware devices. The software is a CAPEX investment that is procured as a project solution (software, hardware, consulting, installation, commissioning, acceptance, support). The solution is fully usable after a few weeks or a few months.
    
    
  • Advantages:
    • Complete control by your own local IT department
    • Complete infrastructure responsibility in the hands of your own IT department
    • Data supposedly more secure - data remains on local IT systems
    • Large number of possible providers from the classic, traditional MES environment
      
      
  • Disadvantages: :
    • High investments for hardware, software and services (usually > EUR 100,000) in advance.
    • System availability only after a few months
    • Capacities and costs for in-house IT staff to maintain and update the application and operating system.
    • Costs for regular training of own IT staff
    • Regular cost-intensive replacement of IT hardware (after 3 to 5 years).
    • High costs for scaling and system expansion.
    • Annual follow-up costs for software maintenance and support.

In recent years, this approach has proven vulnerable to cyber security attacks, resulting in production downtime and high costs.

Quelle: Waterfall - 2024 Threat Report

• Edge computing OEE solutions

  • Features: Data processing takes place directly at the source of data acquisition, for example on a device or sensor installed on the production line.
  • Advantages: Lower latency times during data processing, reduced bandwidth utilization as less data has to be sent over the network.
  • Disadvantages: Central data storage and processing only via additional components. Can mean higher costs for advanced hardware, may require specialized software development.
    Heterogeneous OEE data sources, no central administration with associated high personnel costs.

Software-as-a-Service - get started today