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.
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