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Digital-driven Business Landscape

Transitioning to digital operations for a Company involves strategic decision-making to either incrementally evolve existing systems or significantly revolutionize them. This process entails comprehensive mapping to identify improvements while leveraging analytics to map the "As Is" environment and formalize the "To Be" future. Enhancing global efficiency and effectiveness requires a deep understanding of all systems and processes, along with optimization through process-based analytics and correlation.

Overall Operations Effectiveness (OOE), Total Effective Equipment Performance (TEEP) and Overall Equipment Effectiveness (OEE) are crucial metrics in the realm of "manufacturing", providing invaluable insights into the efficiency and productivity of production processes.



OOE | Human, Financial, Material & Process Metrics

TEEP | Loading, Scheduled & Calendar Time

OEE | Equipment Efficiency & Effectiveness

These metrics are indispensable tools for both CEOs and Factory Managers, offering a comprehensive view of operational performance and its direct impact on the P&L statements of both organizational levels. Digital-driven industries can utilize similar concepts to assess and optimize their digital operations.


OOE, TEEP and OEE can impact the P&L relative to Revenue, COGS (Cost of Goods Sold) and Expenses:

OOE (Overall Operations Effectiveness)

TEEP (Total Effective Equipment Performance)

OEE (Overall Equipment Effectiveness)

In summary, improving OOE, TEEP, and OEE can positively impact profit and loss by increasing revenue through higher production output, better quality products, and reduced costs through improved resource utilization and decreased downtime. Conversely, low OEE, TEEP, and OOE can lead to decreased revenue and increased COGS, negatively impacting profitability.

World-class Scores

Typically, a company starting on OOE, TEEP and OEE might have scores lower than what would be considered world-class. However, these scores can vary widely depending on the industry, specific processes, and other factors. Here's a general overview:

OOE (Overall Operations Effectiveness)

TEEP (Total Effective Equipment Performance)

OEE (Overall Equipment Effectiveness)

It's important to note that achieving world-class scores requires a comprehensive approach to continuous improvement, including implementing best practices, leveraging technology, investing in employee training, and fostering a culture of excellence throughout the organization. Additionally, benchmarks for world-class performance may differ across industries and specific manufacturing processes.

Digital | Manufacturing | Analytics play a critical role in several stages

Analytics helps manufacturers understand their current operations by analyzing data from various sources such as production lines, supply chain, and equipment sensors. This analysis provides insights into inefficiencies, production bottlenecks, quality issues, and resource utilization. By identifying areas for improvement, manufacturers can optimize their processes before implementing digital solutions.

Analytics guides manufacturers in implementing digital solutions by providing data-driven insights into the impact of changes on operations. For example, predictive analytics can forecast the effects of process modifications or equipment upgrades, helping manufacturers make informed decisions and mitigate risks during implementation.

Overall, analytics are essential in the manufacturing process for both understanding the current state (As-Is environment) and optimizing operations before and after implementing digital solutions, ensuring continuous improvement and competitiveness in the industry.

Early Adopters Driving Digital Transformation Advancements

These industries have demonstrated the transformative power of digital measurement technologies, setting benchmarks for innovation and efficiency across various sectors.

Oil and Gas Industry Example

In the oil and gas industry, digitalization has revolutionized both upstream and downstream operations, as well as chemical mixing processes. Here are some key points for each aspect

Upstream Operations:

Downstream Operations:

Chemical Mixing and Blending:

By leveraging digital technologies, the oil and gas industry enhances operational efficiency, improves safety and environmental performance, and remains competitive in a rapidly evolving global market.

Digital-driven Industry Examples | Similar Concepts

Digital-driven industries can utilize similar concepts to gauge their operational efficiency and impact on profit and loss. Here are five industries along with examples of how they can apply similar concepts:

E-commerce Industry

Software as a Service (SaaS) Industry

Telecommunications Industry

Finance and Banking Industry

Healthcare Industry (Digital Health)

These industries can adapt similar concepts from manufacturing operations to assess and optimize their digital operations, ultimately impacting their profitability and overall performance.


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