Flevy Management Insights Q&A
How is the increasing focus on data privacy and security impacting the way companies collect and analyze OEE-related data?
     Joseph Robinson    |    OEE


This article provides a detailed response to: How is the increasing focus on data privacy and security impacting the way companies collect and analyze OEE-related data? For a comprehensive understanding of OEE, we also include relevant case studies for further reading and links to OEE best practice resources.

TLDR The growing emphasis on data privacy and security is transforming organizations' approaches to collecting and analyzing Overall Equipment Effectiveness (OEE) data, prioritizing data protection and compliance.

Reading time: 5 minutes

Before we begin, let's review some important management concepts, as they related to this question.

What does Data Privacy Compliance mean?
What does Data Management Systems mean?
What does Role-Based Access Control mean?
What does Advanced Analytics Techniques mean?


The increasing focus on data privacy and security is significantly impacting the way organizations collect and analyze Overall Equipment Effectiveness (OEE) related data. OEE is a critical metric in manufacturing and production industries, measuring the effectiveness of a manufacturing operation. It is calculated by combining metrics on availability, performance, and quality to provide insight into how well equipment and machinery are utilized. However, as data privacy and security concerns grow, organizations are forced to reconsider their data management practices, especially in how they handle sensitive information that could potentially identify individual workers or reveal proprietary processes.

Adapting Data Collection Practices

Organizations are now prioritizing the anonymization and encryption of data to protect individual identities and sensitive information. This shift necessitates the implementation of advanced data management systems that can securely handle large volumes of data while ensuring compliance with global data protection regulations such as the General Data Protection Regulation (GDPR) in Europe and the California Consumer Privacy Act (CCPA) in the United States. These regulations mandate stringent data handling practices, compelling organizations to invest in secure data collection technologies that safeguard personal and operational data. For instance, manufacturers are increasingly adopting Internet of Things (IoT) devices equipped with advanced encryption technologies to collect OEE data directly from machinery without compromising security.

Moreover, organizations are implementing role-based access control (RBAC) systems to ensure that only authorized personnel can access sensitive OEE data. This approach minimizes the risk of data breaches by limiting access based on the user's role within the organization. For example, a floor manager may have access to real-time OEE data for performance monitoring, while access for more sensitive data analytics might be restricted to senior management and specific analysts. This selective access is crucial for maintaining data integrity and security.

Additionally, the adoption of cloud-based platforms for storing and analyzing OEE data is on the rise. These platforms offer robust security features, including data encryption, regular security audits, and compliance certifications, which are essential for protecting sensitive data. Organizations are carefully selecting cloud service providers that adhere to the highest standards of data security and privacy, ensuring that their OEE data is handled responsibly.

Are you familiar with Flevy? We are you shortcut to immediate value.
Flevy provides business best practices—the same as those produced by top-tier consulting firms and used by Fortune 100 companies. Our best practice business frameworks, financial models, and templates are of the same caliber as those produced by top-tier management consulting firms, like McKinsey, BCG, Bain, Deloitte, and Accenture. Most were developed by seasoned executives and consultants with 20+ years of experience.

Trusted by over 10,000+ Client Organizations
Since 2012, we have provided best practices to over 10,000 businesses and organizations of all sizes, from startups and small businesses to the Fortune 100, in over 130 countries.
AT&T GE Cisco Intel IBM Coke Dell Toyota HP Nike Samsung Microsoft Astrazeneca JP Morgan KPMG Walgreens Walmart 3M Kaiser Oracle SAP Google E&Y Volvo Bosch Merck Fedex Shell Amgen Eli Lilly Roche AIG Abbott Amazon PwC T-Mobile Broadcom Bayer Pearson Titleist ConEd Pfizer NTT Data Schwab

Revising Data Analysis Approaches

The focus on data privacy and security also influences how organizations analyze OEE data. There is a growing reliance on in-house analytics teams equipped with secure, proprietary software tools to process and analyze OEE data. This approach reduces the risk associated with third-party data processors and ensures that data analysis occurs within a secure environment. For instance, a leading automotive manufacturer might develop its own data analytics platform to monitor and analyze OEE data across its global production facilities, ensuring that all data analysis adheres to strict internal data security policies.

Organizations are also leveraging advanced analytics and machine learning algorithms that can operate on anonymized datasets. This technique allows for the extraction of valuable insights without compromising the privacy of individual data points. By focusing on aggregate data and patterns, organizations can optimize their operations and improve OEE without exposing sensitive information. For example, predictive maintenance models can be trained on anonymized performance data to forecast equipment failures without needing to access or reveal any potentially sensitive operational details.

Furthermore, there is an increasing use of secure data sharing protocols when collaborating with external partners or within larger conglomerates. These protocols ensure that OEE data can be shared and benchmarked against industry standards without revealing proprietary or sensitive information. Secure multiparty computation and blockchain are examples of technologies being explored to facilitate these secure data exchanges, offering a way to enhance operational efficiency through benchmarking while maintaining strict data privacy and security.

Real-World Examples and Best Practices

Several leading organizations have successfully navigated the challenges posed by data privacy and security in collecting and analyzing OEE data. For example, a multinational pharmaceutical company implemented a fully encrypted, cloud-based OEE tracking system across its production sites worldwide. This system allows for real-time monitoring of equipment effectiveness while ensuring that all data remains secure and compliant with global data protection laws.

Another example is a global automotive manufacturer that developed a proprietary data analytics platform for OEE analysis. This platform is designed with built-in data privacy and security features, including advanced encryption and RBAC, ensuring that sensitive operational data is protected throughout the analysis process.

These examples demonstrate that with the right approach, it is possible to collect and analyze OEE data effectively while adhering to the highest standards of data privacy and security. By investing in secure data collection and analysis technologies, implementing strict access controls, and adopting best practices for data privacy, organizations can continue to leverage OEE metrics to drive operational excellence without compromising on data security.

In conclusion, the increasing focus on data privacy and security is reshaping how organizations collect and analyze OEE-related data. By adapting data collection practices, revising data analysis approaches, and learning from real-world examples, organizations can navigate these challenges successfully. The key lies in balancing the need for operational insights with the imperative to protect sensitive data, ensuring both operational excellence and compliance with global data protection standards.

Best Practices in OEE

Here are best practices relevant to OEE from the Flevy Marketplace. View all our OEE materials here.

Did you know?
The average daily rate of a McKinsey consultant is $6,625 (not including expenses). The average price of a Flevy document is $65.

Explore all of our best practices in: OEE

OEE Case Studies

For a practical understanding of OEE, take a look at these case studies.

Operational Efficiency Advancement in Automotive Chemicals Sector

Scenario: An agricultural firm specializing in high-volume crop protection chemicals is facing a decline in Overall Equipment Effectiveness (OEE).

Read Full Case Study

OEE Enhancement in Agritech Vertical

Scenario: The organization is a mid-sized agritech company specializing in precision farming equipment.

Read Full Case Study

OEE Enhancement in Consumer Packaged Goods Sector

Scenario: The organization in question operates within the consumer packaged goods industry and is grappling with suboptimal Overall Equipment Effectiveness (OEE) rates.

Read Full Case Study

Operational Efficiency Enhancement for Mid-Size Construction Firm through Total Productive Maintenance

Scenario: A mid-size construction firm specializing in commercial building projects is grappling with a 20% decline in overall equipment effectiveness due to inadequate TPM practices.

Read Full Case Study

Optimizing Overall Equipment Effectiveness in Industrial Building Materials

Scenario: A leading firm in the industrial building materials sector is grappling with suboptimal Overall Equipment Effectiveness (OEE) rates.

Read Full Case Study

OEE Improvement for D2C Cosmetics Brand in Competitive Market

Scenario: A direct-to-consumer (D2C) cosmetics company is grappling with suboptimal production line performance, causing significant product delays and affecting customer satisfaction.

Read Full Case Study




Flevy is the world's largest knowledge base of best practices.


Leverage the Experience of Experts.

Find documents of the same caliber as those used by top-tier consulting firms, like McKinsey, BCG, Bain, Deloitte, Accenture.

Download Immediately and Use.

Our PowerPoint presentations, Excel workbooks, and Word documents are completely customizable, including rebrandable.

Save Time, Effort, and Money.

Save yourself and your employees countless hours. Use that time to work on more value-added and fulfilling activities.




Read Customer Testimonials

  •  
    "As a niche strategic consulting firm, Flevy and FlevyPro frameworks and documents are an on-going reference to help us structure our findings and recommendations to our clients as well as improve their clarity, strength, and visual power. For us, it is an invaluable resource to increase our impact and value."

    – David Coloma, Consulting Area Manager at Cynertia Consulting
  •  
    "As a consultant requiring up to date and professional material that will be of value and use to my clients, I find Flevy a very reliable resource.

    The variety and quality of material available through Flevy offers a very useful and commanding source for information. Using Flevy saves me time, enhances my expertise and ends up being a good decision."

    – Dennis Gershowitz, Principal at DG Associates
  •  
    "Flevy is now a part of my business routine. I visit Flevy at least 3 times each month.

    Flevy has become my preferred learning source, because what it provides is practical, current, and useful in this era where the business world is being rewritten.

    In today's environment where there are so "

    – Omar HernĂ¡n Montes Parra, CEO at Quantum SFE
  •  
    "Flevy is our 'go to' resource for management material, at an affordable cost. The Flevy library is comprehensive and the content deep, and typically provides a great foundation for us to further develop and tailor our own service offer."

    – Chris McCann, Founder at Resilient.World
  •  
    "As an Independent Management Consultant, I find Flevy to add great value as a source of best practices, templates and information on new trends. Flevy has matured and the quality and quantity of the library is excellent. Lastly the price charged is reasonable, creating a win-win value for "

    – Jim Schoen, Principal at FRC Group
  •  
    "As a young consulting firm, requests for input from clients vary and it's sometimes impossible to provide expert solutions across a broad spectrum of requirements. That was before I discovered Flevy.com.

    Through subscription to this invaluable site of a plethora of topics that are key and crucial to consulting, I "

    – Nishi Singh, Strategist and MD at NSP Consultants
  •  
    "I am extremely grateful for the proactiveness and eagerness to help and I would gladly recommend the Flevy team if you are looking for data and toolkits to help you work through business solutions."

    – Trevor Booth, Partner, Fast Forward Consulting
  •  
    "The wide selection of frameworks is very useful to me as an independent consultant. In fact, it rivals what I had at my disposal at Big 4 Consulting firms in terms of efficacy and organization."

    – Julia T., Consulting Firm Owner (Former Manager at Deloitte and Capgemini)



Download our FREE Strategy & Transformation Framework Templates

Download our free compilation of 50+ Strategy & Transformation slides and templates. Frameworks include McKinsey 7-S Strategy Model, Balanced Scorecard, Disruptive Innovation, BCG Experience Curve, and many more.