CEI : Competitive EDGE Index

Introduction:

Competitiveness is the KEY to surviving & thriving in today’s world. Instead of a general idea about competitiveness of a company, there is a need for a specific, quantitative measure of individual competitiveness of KEY MANUFACTURING ASSETS (KMA), and the weighted average of KMAs can then be a measure of the competitiveness of the company.

Marshall suggest CEI, i.e. Competitive EDGE Index

 IMPORTANT CONCEPTS:

1. CEI = P x Q (where P is Productivity, Q is Quality)

2. CEI is a Comparative (compares Performance with New Technology with Old) and Dynamic (will continue to compare over time) Ratio.

3. P depends on two variables : Machine & Process Optimization (Opz) and Overall Equipment Efficiency (Oee)

P =Opz x Oee

4. Q is a Ratio of Defectives Produced on Machine with Closed Loop vs Open Loop manufacturing.

           Q = Qcl/Qol

CONCLUSION: Rigorous measurement of the above variables will yield deep insights and lead to wise decisions on investment in Industry 4.0 Technologies.