The Economics of Automation – Part 2
Posted by John Clemons
In this last installment on this topic I said that the main purpose of automation is no longer to eliminate labor. That may have been the purpose some decades ago, but it is no longer the purpose of automation.
I spent some time explaining that fundamentally that was the case because if some type of machine or automated equipment could be used to replace manual labor, it would have already been installed a long time ago.
So...

Back in the ‘60’s and ‘70’s the main purpose of automation was to eliminate labor. Actually, that’s pretty much been the main purpose of automation since the first machine of any kind was rolled onto a factory floor hundreds of years ago.
Eliminating or reducing labor is the purpose behind just about any tool or machine from the invention of the wheel right down to the invention of this laptop computer I’m using to write this blog.
But, you may not realize this, that is all very much in the process of changing and, in many cases, has already changed, and changed dramatically.
I’m not joking. The main purpose of automation used to be to ...
OEE is a tool that helps manufacturing companies improve their bottom line by reducing costs, increasing quality, and increasing productivity. OEE and Continuous Improvement are like two peas in a pod. OEE is a tool that supports the Continuous Improvement initiative!
The Overall Equipment Effectiveness (OEE) metric is a function of the complete manufacturing system, process line, or individual piece of equipment.
The components of OEE are: