This white paper discusses how OEE (Overall Equipment Effectiveness) and MES (Manufacturing Execution System) can help food and beverage manufacturers reduce costs. OEE measures availability, performance, and quality to identify improvement opportunities. Schneider Electric's Ampla MES solution collects real-time production data across multiple systems to provide analytics and insights. Implementing an automated MES can help manufacturers reduce downtime, waste, and labor costs through continuous monitoring and root cause analysis of production issues.

1. OEE and MES Systems Help Food
and Beverage Manufacturers
Reduce Costs
Make the most of your energySM
April 2011
by Paul Dengler, National Account Manager,
MES solutions, Schneider Electric

2. Summary
Introduction...................................................................................................... p 3
• Today’s Marketplace Challenges ................................................................... p 3
• What Have You Done for Me Lately? ............................................................. p 3
Ampla™
and the Schneider Electric SCADA and MES Competency Center ....... p 4
Functional Capabilities of Ampla ...................................................................... p 4
OEE = Availability % X Performance Rate % X Quality Rate %........................... p 6
• Availability ..................................................................................................... p 6
• Performance Rate ........................................................................................ p 6
• Quality Rate .................................................................................................. p 6
OEE = Availability X Performance Rate X Quality Rate....................................... p 7
• Availability ..................................................................................................... p 7
• Performance Rate ........................................................................................ p 7
• Quality Rate .................................................................................................. p 7

3. Today’s Marketplace Challenges
Most food and beverage manufacturers today are not concerned with producing
more product with the same assets. With the downturn in the U.S. economy,
many of these manufacturers aren’t even at capacity, so producing more of
something they can’t sell doesn’t make sense.
Why are so many food and beverage manufacturers considering implementing a
downtime or Overall Equipment Effectiveness (OEE)-based system? To reduce the
cost of the goods (COGs) they do sell. In a high-volume, low-margin industry like
food and beverage, counting nickels and finding small efficiencies is important.
Producing less scrap, utilizing less labor, and running machines more efficiently are
all small changes that can add up to considerable savings.
Today’s marketplace is additionally challenging for food and beverage
manufacturers because they face market restructuring and realignment, smaller
batch sizes but increasing batch varieties or SKU numbers, and production for
emerging global markets. These factors complicate cost reduction efforts and
make OEE even more critical. Today, many food and beverage companies have
some sort of manual downtime or OEE collection system. Since it’s not automated
it’s not providing root cause data in a real-time manner that plant personnel can
act on. Instead, it’s offering a history lesson and personnel can only react to the
information, rather than use it in a proactive fashion.
Since OEE is seen as a key factor in driving down costs, many manufacturers
have some support from top management to consider implementation of a
Manufacturing Execution System (MES). The companies most likely to achieve the
greatest benefits from an MES system are fairly large market players with multiple
sites or enterprises.
What Have You Done for Me Lately?
An MES system is a suite of manufacturing operational software tools that connect
to multiple plant and business systems, collects the relevant data and presents it
as easy-to-understand, real-time intelligence for productivity analysis, data mining,
querying and reporting. An MES system automates report generation and data
entry and eliminates redundant manual processes, while providing bi-directional
data exchange between back office reporting systems and operations.
An MES system can help users identify bottlenecks, analyze production downtime
causes and energy management, calculate key performance indicators (KPIs),
understand work-in-progress, track the real costs of production, control inventory
and many more operational performance issues. Ultimately, an MES system offers
manufacturers complete system visualization and real-time information to improve
business strategies and make informed decisions that improve productivity and
efficiency, and reduce costs.
Introduction
White paper on OEE and MES Systems | 3

4. OEE and MES Systems Help Food and Beverage Manufacturers Reduce Costs
4 | White paper on OEE and MES Systems
Ampla and the Schneider Electric SCADA
and MES Competency Center
The Ampla MES solution acquires and publishes
operational performance information in a rich,
consolidated format. The Ampla system eliminates
double handling of data and provides information in
a responsive and timely manner. Wherever possible,
the software acquires data automatically. However,
operators can enter data manually when desired. The
Ampla MES solution exposes the business rules in a
configuration environment and does not hide them in
proprietary systems software code. This ensures long-
term maintenance and enhancements to the system
can be managed by suitably trained site personnel.
Schneider Electric’s SCADA and MES Competency
Center provides the tools and services for the
implementation of an OEE, Production, Downtime
Reporting and Analysis System based on our Ampla
MES solution.
Ampla is a powerful and dynamic suite of MES
solutions that allow manufacturers to improve the
production, efficiency, performance and profitability
of their business. The non-invasive, low-risk modular
approach of the Ampla MES software leverages open
technologies and complements existing automation
and IT systems, delivering fast and high return on
investment, with a low total cost of ownership.
Managers can dynamically select the information .
they need to take prioritized action and make
continuous production efficiency improvements. .
For example, decision-makers can “drill-down”
through the production hierarchy to identify
bottlenecks to production, inhibitors to quality, .
and root causes of delays.
Functional Capabilities of Ampla
Unlike the majority of MES offerings in the marketplace
today, Ampla solutions are built on a single common
platform. This provides:
• Consistent interface for configuration and analysis, .
resulting in reduced training and maintenance costs
• Integrated solutions that enhance users’ experience
• The ability to easily combine information from .
multiple modules
There are 10 functional modules in the Ampla suite,
including: downtime, production, metrics, quality,
planning, inventory, maintenance, cost, knowledge,
and energy.

5. OEE and MES Systems Help Food and Beverage Manufacturers Reduce Costs
OEE 101
Overall Equipment Effectiveness (OEE) is a key
benchmarking tool used to help companies focus on
improving the performance and efficiency of their
machinery and manufacturing process.
The OEE formula is used to find the greatest areas of
improvement so that businesses can start with the area
that will provide the greatest return on assets. The OEE
formula will show how improvements in changeovers,
quality, machine reliability, working through breaks and
more affect the bottom line.
The derived OEE percentage rolls up the six major
production losses in three main categories into a
single, easily calculated and communicated figure.
White paper on OEE and MES Systems | 5

6. OEE and MES Systems Help Food and Beverage Manufacturers Reduce Costs
OEE loss category Loss Loss examples
Downtime loss
Breakdowns
• Tooling failures
• Unplanned maintenance
• General breakdowns and equipment failure
Setup and adjustments
• Setup/changeover/warm-up time
• Material and operator shortages
• Major adjustments
Speed loss
Small stops
• Obstructed product flow
• Misfeeds and component jams
• Delivery blocked
• Cleaning/checking
Reduced speed
• Rough running
• Under nameplate or design capacity
• Equipment wear and operator inefficiency
Quality loss
Startup rejects • Scrap and rework
• In-process damage or expiration
• Incorrect assemblyProduction rejects
OEE = Availability % X Performance Rate
% X Quality Rate %
Availability
• Percentage of scheduled production (to measure
reliability) or calendar hours 24/7/365 (to measure
equipment utilization) that equipment is available .
for production
• Reducing downtime is the key factor to .
improving availability
• Availability = B/A
Performance Rate
• Percentage of parts produced vs. target/name
rated speed of equipment per time frame, the
inverse of cycle time
• Increasing line speed of equipment is the key factor
in improving Performance Rate
• Performance Rate = D/C
Quality Rate
• Percentage of good sellable parts out of total parts
produced per time frame
• Reducing scrap is often the key factor to improving
Quality Rate
• Quality Rate = E/C
6 | White paper on OEE and MES Systems

7. OEE and MES Systems Help Food and Beverage Manufacturers Reduce Costs
Availability
• Percentage of scheduled production (to measure
reliability) or calendar hours 24/7/365 (to measure
equipment utilization) that equipment is available .
for production
• Availability = B/A
Performance Rate
• Percentage of parts produced per time frame, the
inverse of cycle time
• Performance Rate = D/C
OEE = Availability X Performance Rate
X Quality Rate
Quality Rate
• Percentage of good sellable parts out of total parts
produced per time frame
• Quality Rate = E/C
T Calendar time
A Scheduled time
B Running time
C Target output
D Actual output
E Good output
Planned maintenance/not required
Slow running/rate loss
Stopped/breakdowns
Reject/Quality loss
White paper on OEE and MES Systems | 7

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Paul Dengler is a national account manager for MES solutions for Schneider Electric’s U.S. SCADA
& MES Competency Center. He attended North Carolina State University where he graduated with a
Bachelor of Science degree in mechanical engineering. Paul has been with Schneider Electric for three
years and is based in South Carolina. He spent the first 20 years of his career focused on electrical and
industrial automation systems deployed across a number of vertical industries. For the past 10 years
he has been responsible for applying software tools such as SCADA, process historians, and MES
systems to improve the integration of manufacturing operations with back office reporting/accounting
(ERP) systems. He can be reached at Paul.Dengler@us.schneider-electric.com.
Document Number 8000HO1125 April 2011 lh
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©2011SchneiderElectric.AllRightsReserved.
Schneider Electric USA, Inc.
Automation and Control Center of Excellence
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Knightdale, NC 27545
Tel: 919-266-3671
www.schneider-electric.us
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