Overall Equipment Effectiveness
What is OEE?
OEE, or overall equipment effectiveness is a key performance indicator used in the manufacturing industry to measure the efficiency and productivity of equipment and production processes. OEE software provides critical insights into how well machines or production lines are being utilized to produce quality output within a specific timeframe. Measuring OEE is vital for manufacturers because it quantifies operational losses or inefficiencies. By calculating OEE, companies can determine the extent to which their equipment is being used for productive activities versus how much potential is being wasted.
Understanding OEE is essential for companies aiming to optimize their production processes and boost productivity.
What is a good OEE score?
In theory, an OEE score of 100% means that a factory is manufacturing products that meet quality standards as fast as possible without stopping during the scheduled running time. In practice, this perfect score is unachievable. Realistically, an OEE score of 85% is exceptional, while a score of 40% is low, but not uncommon. Regardless of OEE score, there is always room for improvement.
How is OEE calculated?
OEE is calculated using three key sets of data relating to machinery availability, performance, and product quality.
OEE = availability x performance x quality, where:
- Availability reflects the time production is down when it should have been running = Operating Time / Available Time
- Performance reflects anything that causes the manufacturing process to run at less than optimum speed = Total Production / Target Production Rate x Operating Time
- Quality reflects the percentage of manufactured items that do not meet quality standards = Good Production / Total Production
How do I improve OEE?
One of the most effective ways to improve your OEE is to measure it using the most up-to-date solutions. In addition, rather than collecting data from every single machine in the process, you must only focus on data from machines that are critical to your business. While historical data is certainly valuable, real-time data gives you insights into what is happening in the moment so you can accurately calculate OEE. When calculating OEE, it’s important to use a formula that is designed for your particular business is important as well. For example, in some manufacturing processes minor product defects are allowed, which means performance and quality are the top priorities.
