More info on OEE

What exactly is OEE? Modern Machine Shop states it is Overall Equipment Effectiveness

real time oee blogThey also state “An OEE solution can enable manufacturers to achieve world-class status. More specifically, it can provide benefits in these key areas:

  1. Equipment: Reduced equipment downtime and maintenance costs, plus better management of the equipment life cycle
  2. Personnel: Labor efficiencies and increased productivity by improving visibility into operations and empowering operators
  3. Process: Increased productivity by identifying bottlenecks
  4. Quality: Increased rate of quality, reduced scrap”

They continue that “OEE is a performance metric compiled from data on Machine Availability, Performance Efficiency and Rate of Quality that is collected either manually or automatically. These three data points are calculated as follows:

  1. Availability = (Operating time – Downtime) /Total Operating Time
  2. Performance = Total output/potential output
  3. Quality = Good output/total output

“OEE is then calculated by multiplying those factors: OEE = Availability*Performance*Quality

real time oee blog“More generally, OEE also captures reasons for downtime (due to machine conditions, material status, production personnel or quality issues) and can encompass the individual machine level, a line or cell level, or the entire plant.”

For more info on OEE, check out our blog on real-time OEE

Info for this page compiled from “A Manager’s Guide to OEE,” Modern Machine Shop, 4/7/05