What is OEE?
Overall Equipment Effectiveness (OEE) is a measurement that identifies the percentage of planned production time that was actually productive. An OEE of 100% represents perfect production performance, only good parts produced (no losses), as fast as possible (given the equipment´s nominal speed), without any equipment stops during production.
OEE is calculated by multiplying three basic indicators: availability, performance and quality. Each of these represent a different perspective about how close to perfection your manufacturing processes are.
Learn more about these OEE KPIs:
Availability – 100% availability means that your processes are running during the whole time of your planned production time, without any stoppage.
Performance: 100% performance means your processes are running at the fastest possible speed (at the equipment´s maximum theoretical speed, each product produced within it´s ideal cycle time).
Quality: 100% quality means no defective parts were produced (only good parts were manufactured).
In the short term, OEE identifies the total improvement opportunity for a given process or equipment. In the long term, it helps to achieve improvement through a better understanding of production losses. The indicator also provides an objective way to define improvement goals and monitor progress towards the defined objectives. In most cases, companies start out with the goal of achieving 85% OEE, and each indicator has it´s own goal: 90% availability, 95% performance and 99% quality. This way we would have the following calculation: Availability (90%) X Performance (95%) X Quality (99.9%) = 85% OEE.
To learn more visit www.oee.com
Trinity Business Solutions is dedicated to increasing productive efficiency by perfecting the OEE indicator as well as dozens of other process KPIs. If you are interested in lean manufacturing technology solutions, please contact us.