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2020 Overall Pricing Effectiveness: The New OEE

January 31st, 2020 (Updated 03/24/2021) | 1 min. read

By Pricefx

Overall Equipment Effectiveness (OEE) is the practice of assessing the availability, performance and quality output of machines within your manufacturing process. This allows a business to effectively measure and predict potential losses and to establish a system for mitigating them. OEE is a well-established practice used by many businesses, often to great effect. However, there is a method that is proving even more effective than OEE. 

Overall Pricing Effectiveness, or OPE for short, is a way of looking at fully optimizing a manufacturing enterprise in order to optimize margins. Improving variable costs often leads to an <8% increase in profitability. But by improving pricing results, businesses can achieve as much as a>11% increase in operating profit. OPE comprises of three key elements, insight, managing and realization. Each of these stages mirrors the OEE model but with greater potential for control and profitability. 

Click here to read more about how the OPE SaaS automation model is the next step for manufacturers to achieve maximum profitability with Pricefx. 


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