Overall Equipment Effectiveness
- Category: Manufacturing
Overall Equipment Effectiveness (OEE) in Manufacturing
The Overall Equipment Effectiveness (OEE) is a proven key performance indicator in the manufacturing industry. OEE measures the efficiency and effectiveness of a manufacturing process by comparing the actual productivity to the potential productivity. It is a crucial indicator as it shows the percentage of manufacturing time that is truly productive. Businesses can gain valuable insights into how well their manufacturing process is running, and where improvements can be made, by calculating and tracking their OEE.
The main components of OEE are Availability, Performance and Quality. Each of these factors represents a distinct aspect of the manufacturing process:
- Availability generally refers to the uptime of the machinery; it takes into account both planned and unplanned stoppages or downtime.
- Performance measures whether the production process is running as fast as possible under optimal conditions.
- Quality refers to the manufactured goods that meet the required specifications without requiring any reworks.
By combining these three metrics, the OEE provides a comprehensive view of manufacturing effectiveness.
To calculate the OEE, one can use the following formula:
Overall Equipment Effectiveness = (Availability x Performance x Quality) / 100
In this formula:
- Availability is calculated as (Run Time / Planned Production Time).
- Performance is calculated as (Ideal Cycle Time / Total Pieces) / Planned Production Time.
- Quality is calculated as (Good Pieces / Total Pieces).
This formula gives the OEE as a percentage. An OEE score of 100% indicates that manufacturing is only producing good parts, as fast as possible, without any stop time. In the real world, this is a theoretical figure, however, it remains a useful benchmark for comparison and continuous improvement.
In conclusion, calculating and monitoring the OEE can provide significant insights into the efficiency of a manufacturing process, identify potential areas for improvement, and ultimately increase profitability.
