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OEE Productivity

November 27, 2009

OEE enables the measuring of the overall efficiency of a production line or that of a whole factory. OEE makes a worthwhile improvement towards the productivity of a manufacturing unit.  Deployment of software systems can benefits the OEE score by more than 10% in as little as the first year.  It has been demonstrated that improving the OEE of as little as one per cent results in a large improvement in the production capacity and resultant decrease in the unit cost of the manufactured product.

The Overall Equipment Effectiveness score is calculated from three components: Availability (A), Performance (P) and Quality (Q).

  • Availability is the % of uptime of each manufacturing or plant asset
  • Performance is the % throughput against a target
  • Quality is the % of scrap.

Multiplying A x P x Q gives the the OEE score.

OEE to drive Productivity in Use

Overall Equipment Effectiveness is useful as a key performance indicator for managers.  At a high level OEE looks relatively simple, it can be {extremely, highly} involved to calculate in in a working factory.  Hence, sophisticated OEE software packages are normally used to record the data from each part of the plant and make the OEE calculation in near real-time.  Typically these systems are of a modular structure to give it maximum flexibility and allow it to fit with existing plant and data capture facilities and ERP system.

Once the data has been recorded and analysed, it is only useful if it can be converted into reports that are reliable.  OEE software from the main vendors offers a wide choice of reports that can be adapted and drilled down into, to enable the user to find what they are focused on.

OEE is becoming as the core tool of lean manufacturing. via continuous improvements a production line can reduce its carbon footprint, improve efficiency and reduce management finger-pointing as well as manage risk.  All production managers must be aware of the details of Overall Equipment Effectiveness and how it fits into the lean manufacturing principles as a essential force for productivity improvements.

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