InfoWarning
WARNING: OEE Optimization Can Increase Queues and Manufacturing Lead Times
Bernard Milian warns that maximizing utilization at every resource can increase queues, instability and manufacturing lead times.
Operations leaders should distinguish local efficiency from end-to-end flow and protect constrained resources without overloading the rest of the system.
More details are available in the Bernard Milian archive.
The Dataleo angle
Performance measures should support flow and delivery decisions, not reward local activity that increases work-in-process.