How to use Overall Labor Effectiveness (OLE) as a companion to OEE for improving direct labor costs
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We're used to measuring the
We're used to measuring the effectiveness of our machinery with OEE - there is a similar way to determine how effectively we're using our Human Resources: Overall Labor Effectiveness (OLE). Since for many factories, their reason to track and improve OEE is primed around labor savings, taking a good look at the manning waste components of labor costs will give you much better tools to do your improvement work.
The OLE system is very similar to OEE, in fact, I like to draw out Equipment and Labor effectiveness as two axes in the same graph - that really shows the relation between machine losses and manning losses.
You can adapt the categories I mention in this video to better suit your company's practices, of course. Think about how this measurement of the most valuable resource we have can help and improve your operational excellence...
#continuousimprovement #laborcost #kpi
The OLE system is very similar to OEE, in fact, I like to draw out Equipment and Labor effectiveness as two axes in the same graph - that really shows the relation between machine losses and manning losses.
You can adapt the categories I mention in this video to better suit your company's practices, of course. Think about how this measurement of the most valuable resource we have can help and improve your operational excellence...
#continuousimprovement #laborcost #kpi
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