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Ralph 'Pete' Peters
Founder & President
"Maintenance Excellence Begins with
PRIDE-in-Maintenance"
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Ralph W. 'Pete' Peters
President & Owner
P: 919-270-1173
E: ralphpetepeters@gmail.com

 


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The TMEII family is a proud sponsor of Adventurers for Special Needs (AFSN). In fact, Ralph 'Pete' Peters TMEII Founder/President is Co-founder of AFSN with his son, Brian Peters. This organization is near and dear to all of the TMEII family. Learn More


Improving Overall Craft Effectiveness (OCE)

Overall Craft Effectiveness (OCE) is about craft labor productivity. And here is a real world analogy as to why OCE is so important to the True Maintenance Leader. When Pete was a plant manager for the CRESCENT/XCELITE plant in the mid-80s, people productivity was key to profits and matching their overseas competitors. But staying competitive required three things: 1) orders for tools so we could plan direct labor work, 2) 95% to 100% performance when doing direct labor work plus 3) 100% quality work from our people.

When orders went down, we would not have a full shift on direct labor work and temporary layoffs then became an option. Direct labor productivity was very good when we had the orders to fill. Productivity % then could be calculated by % Direct Labor x % Performance (to measured day work type standards) x % Quality (Normally 99%). But more importantly it could be defined by Direct Labor Variances which went directly to the bottom-line.  

Craft Labor Productivity is a key element for a profit-centered maintenance operation. Contract maintenance providers count on being more productive that in-house services they replace. The profit and customer-centered maintenance leader (inhouse or contractor) must consider total asset management in terms of improvement opportunities across all maintenance resources. Measuring and improving OCE must be one of many components to continuous reliability improvement process and total asset management. Pete coined the term and definition of OCE over 10 years ago.

Today we have a true crisis and shortage of skilled craft employees. It is very surprising when some maintenance managers and well known maintenance consultants say; "we cannot measure craft performance and wrench time, let's focus on the fancy stuff; reliability and not on the basics." OCE is about the maintenance basics and includes three key elements very closely related to the three elements of the Overall Equipment Effectiveness (OEE) Factor.

Overall Equipment Effectiveness (OEE):  Most everyone recognizes and understands the world-class metric, OEE, that measures the combination of three elements for the physical asset; equipment asset availability, performance and quality output. OEE is about measuring physical asset productivity. The calculation of OEE is shown below:

The OEE Factor = % Availability (A) x % Performance (P) x % Quality (Q)

An OEE Factor of 85% is recognized as world-class

Therefore OEE of 85% requires at least the 95% level for each of the 3 elements:

So if OEE = A x P x Q then if each factor is 95% or .95

OEE = .95 x .95 x 95 @ 85%

Overall Craft Effectiveness: The OCE Factor focuses upon craft labor productivity and measuring/ improving the value added contribution that people assets make. Just like OEE, there are three elements to the OCE Factor:

  • The effectiveness factor: Craft Utilization for OCE and Asset Availability for OEE
  • The efficiency factor: Craft Performance for OCE and Asset Performance for OEE
  • The quality factor: Craft Service Quality for OCE and Quality of Asset Output for OEE

Overall Craft Effectiveness (OCE)

Overall Equipment Effectiveness (OEE)

Elements of OEE & OCE

Craft Utilization or Pure Wrench Time (CU)

Asset Availability (A)

Effectiveness

Craft Performance (CP)

Asset Performance (P)

Efficiency

Craft Service Quality (CSQ)

Quality of Asset's Output (Q)

Quality


OCE Focuses Upon Your Craft Labor Resources:  We strongly believe in basic maintenance best practices as the foundation for maintenance excellence. This is what I call Continuous Reliability Improvement (CRI). CRI is about maintenance business process improvement that includes opportunities across all maintenance resources; equipment and facility assets as well as people resources-our crafts work force and equipment operators. CRI must also include MRO materials management assets, maintenance informational assets and the added value resource of synergistic team-based processes. Continuous Reliability Improvement improves the total maintenance operation and can start with measuring and improving OCE.

For more info formation about Overall Craft Effectiveness (OCE), contact Pete.