OAL Insight: What is OEE? (Overall Equipment Effectiveness)
OEE, or Overall Equipment Effectiveness, is a very simple metric used to evaluate how effectively a manufacturing operation is utilised. Three values are multiplied together to give a baseline score:
- Availability (the time the plant is ready to run compared to the time it actually runs)
- Performance (the quantity made compared to the quantity that should have been made)
- Quality (the right first time products compared to the total products made)
The critical factor to remember is that availability losses are measured as time, whilst performance and quality are both measured in units. The equipment may have been slowed down for two hours, between 10:00 and 12:00, but the performance loss that results is measured in units.
The Value of OEE
The OEE metric offers an accurate baseline score so that a team can measure their progress. The measure compounds losses so if one of the three values is low, the OEE will also be low.
In practical terms it’s a powerful catalyst for change. To measure the value you have to discover the underlying unplanned losses. Improve those and Improve OEE.
OAL Factory Performance includes the real time measurement and visibility of OEE.
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