Overall Equipment Effectiveness (OEE)
What is OEE?
2022/05/17
OEE (Overall Equipment Effectiveness) is the gold standard for measuring manufacturing productivity. It identifies the percentage of manufacturing time that is truly productive.
Having a 100% OEE score means you are producing only Good Parts, as fast as possible, without any Stop Time.
In OEE, that means 100% Quality (only Good Parts), 100% Performance (as fast as possible), and 100% Availability (no Stop Time). Simply put, OEE can be expressed by the formula:
The three main factors of Overall Equipment Effectiveness
Production Availability - your uptime compared to your scheduled production time. By reducing downtime (planned or unplanned) to ensure that your machinery is available when you need it. A non-producing manufacturing line increases costs without producing anything.
Performance - your actual rate (actual machine speed) versus standard rate (design machine speed). Ensure that your production process is going at the correct speed, to get as many jobs done each week as possible. Any slow performance will result in longer run times.
Quality - your good product versus your total product. In an ideal world, there should be no defective or scrapped items, but a product that can be reworked is less detrimental to OEE than one that must be discarded.
Why does OEE matter?
With OEE, you can gain insights into your manufacturing process and identify losses, and how to systematically improve your manufacturing process. OEE is the single best metric for identifying losses and helps with the benchmarking progress.
In short, OEE is returned as a simple number that gives an indication of how effectively your plant’s resources such as time, material, and equipment are utilised.
6 Benefits of OEE
1. Helps you achieve Return on Investment (ROI) on equipment
Delivers significant ROI, whether you’re increasing volume, or driving effectiveness. The objective of OEE is to obtain maximum productivity.
2. Real-time production monitoring
Automated data collection, ensures the data quality is relevant, precise and transparent.
3. Improve efficiency
Enable accurate OEE analysis without manipulating data in tools such as reports and spreadsheets.
4. Responsibility
OEE Software determines downtime and reveals productivity data. Management can allocate resources to team members throughout the plant to ensure greater accountability.
5. Provides real-time targets
Real-time production targets.
6. Continuous improvement
Detect excellent runs and set the next target.
Why is it important to know your OEE?
- Improvement opportunities are primarily reflected in OEE.
- OEE identifies the main reasons for production losses.
- OEE can be implemented as a great motivator, providing operators with visible insights into target matrices.
- OEE identifies your production bottlenecks.
