Overall Equipment Effectiveness (OEE) Introduction

We believe in not just about analysing the production operations but putting the training and systems in place to sustain improvements. There is an emphasis on strong methods for measuring performance, and the preferred means is through the use of Overall Equipment Effectiveness, OEE, namely:

Machine Availability(%) x Performance(%) x Quality(%) = a comprehensive efficiency figure

And in a bit more detail:  

As an example, if you run an 8 hour shift and there is downtime of 1 hour for a changeover and downtime of 1 hour for a breakdown, then your Availability is only 6 hours out of 8 hours, or 75%.

If you run a machine for one hour, and the cycle time of each component is exactly one second, you would expect to make 3600 components in one hour. This obviously equates to 100% efficiency.
If however in the hour you only produce 2700 components, then Performance is only 75%

This is easy to calculate. If you produce 100 components and 50 have to be reworked or are scrap, then your Quality figure is only 50%.

The use of OEE can be for immediate analysis to highlight where some of the problems may be occurring, and then the same method can be used for longer term - shift-to-shift, day-to-day, week-to-week and so on. As it is the Availability, Performance and Quality that you are measuring this method can be used to compare individual machines, shifts or entire factories irrespective of what they manufacture. It is from here that analysis work can be undertaken to improve your profits.

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