Out with Overall Equipment Effectiveness (OEE) – In with Overall Business Effectiveness (OBE): A New Perspective for Plant Reliability Management and How it Drives Key Financial Indicators By Drew D. Troyer, CRE, CMRP President Noria Global Services

W. Edwards Deming taught us that if there is variability in the products we manufacture and sell, our customers will eventually be dissatisfied. He further taught us there are two sources of variability – “special” and “environmental.” Special causes of variability are those rare events – the machines quit and we fix them, for example. Environmental causes are the system sources of variation to which our organizations’ become accustomed, variability in operating procedures, variability in the way maintenance work is completed, variability in the supply chain, excessive variability in customer requirements and sales commitments, variability in equipment design standards, etc. For too long, plant reliability management professionals have focused the bulk of their energy on controlling what Deming refers to as the “Special” problems. Even our chief measurement of success, Overall EQUIPMENT Effectiveness (OEE) suggests that once we’ve got the equipment running well, the reliability professional’s work is done. This is simply not the case – the modern reliability professional views the plant and the organization must more holistically. In this presentation I’ll introduce a broader measure of reliability management success – Overall BUSINESS Effectiveness (OBE) and demonstrate how the more holistic approach to plant reliability management can profoundly influence your firms Return on Net Assets (RONA), Economic Value Added (EVA), share price and other key financial performance indicators.

BIO: Drew D. Troyer is a champion of effective reliability management and is passionate about helping companies find hidden profits inside their plants. As a highly sought consultant to Fortune 500 manufacturing firms, author of an award-winning column in Reliable Plant magazine, and teacher, Troyer understands both management expectations and plant floor realities. Drawing on his personal plant experiences and MBA – along with an entertaining and spirited style – he has a unique ability to challenge and inform professionals at all levels. Certified Reliability engineer (CRE), a Certified Maintenance and Reliability Professional (CMRP), and chairs the standards committee of the Society for Maintenance and Reliability Professionals (SMRP). He has published more than 120 articles, papers, books and chapters.