OEE (Overall Equipment Effectiveness)

OEE (Overall Equipment Effectiveness) is a Lean Metric that compares the potential machine performance to the actual performance. It is the product of three factors: Availability, Performance, and Quality.

WHY WORK WITH OEE?

• To improve equipment / machine productivity
• To increase good quality output
• To support continuous improvement: With OEE you can identify your levers for improvement: Should you work on your machine output, on your quality, or on your machine availability? These numbers will help you find this out. And OEE will also show you how you are improving.
• To support investment decisions: Before buying new equipment, you might want to check how much more you could produce with your existing equipment. How much would you have to increase your OEE in order to avoid the investment? Is it feasible? From our experience, many investments can be avoided when working smartly with OEE.
• To improve people productivity: You can use OEE to eliminate shifts, thus increasing people's productivity.
• To decide on site allocations: Looking at OEE 1 and OEE 2 can also tell you where to produce what.
• To compare sites regarding performance: Be careful if you build on OEE to compare sites. Often it‘s like comparing apples to pears as batch sizes/ lot sizes are different, product complexity varies, and sites work with different equipment.

HOW TO CALCULATE OEE ?

OEE = Availability [%] x Performance [%] x Quality [%]

OEE is an expression for the productivity of your equipment. 

The three terms express: how long the equipment was up and running (availability), at which speed the equipment was running compared to the maximum (performance), and how many of the produced units were good compared to the total of units produced (quality).

You can calculate OEE by dividing what has been produced by what was theoretically possible. This is the simplest way to calculate OEE.

HOW TO CALCULATE OEE 1 OR OEE 2?

Depending on the calculation of the machine availability, OEE 1 and OEE 2 can be distinguished:

ONCE YOU STOP LEARNING, YOU START DYING

- Albert Einstein - ​ ​

Our Courses 

HOW OEE SHOWS YOUR LOSSES AND HOW TO SET UP OEE 1 AND OEE 2

BUILD ON OEE 1 TO...

• Decide on investments. Can you avoid the investment by producing more using your existing equipment? 

BUILD ON OEE 1 AND OEE 2 TO...

• Increase the capacity of the bottleneck process. Use OEE 1 to see the potential and OEE 2 to understand the actual efficiency and need for improvement.
• Identify open capacities in order to transfer products. Use OEE 1 to see the potential and OEE 2 to understand about efficiency and need for improvement.
• Decide which equipment to get rid of. Use OEE 1 to see how much the equipment is being used overall. Use OEE 2 to understand how much improvement will be required.

BUILD ON OEE 2 TO...

• Increase the efficiency of any equipment.
   

Would you like to discuss your challenges in setting up OEE? Reach out to us! Learn more about setting up OEE and managing with OEE in our eLearnings.