OEE Overall Equipment Effectiveness

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OEE (Overall Equipment Effectiveness):

What Is OEE? 

OEE full form is Overall Equipment Effectiveness.

OEE (Overall Equipment Effectiveness) is a fundamental principle of Lean Manufacturing,

OEE (Overall Equipment Effectiveness) is a universal “best practice” metric to monitor, evaluate, and improve the effectiveness of a production . 

OEE (Overall Equipment Effectiveness)  is  the percentage of planned production time that is truly productive.

OEE in lean manufacturing means  manufacturing  good parts as fast as possible, with no downtime.

OEE is  originally developed by JIPM (Japan Institute of Plant Maintenance) .

OEE score of 100% represents perfect production: 

OEE (Overall Equipment Effectiveness)  in manufacturing is a lean tool used in Total Productive Maintenance programs. 


OEE Formula :

OEE is a combination of three factors.

Standard OEE formula is tabled by Nakajima.

OEE (Overall Equipment Effectiveness ) is calculated as-

OEE = Availability x Performance x Quality. 

means

OEE = (Good Count × Ideal Cycle Time) / Planned Production Time

The three elements of OEE are -

1) Availability means percentage of actual machine working time  compared to the scheduled working time. 

2) Performance is the ratio of ideal cycle time to run time multiplied by total parts count.

3) Quality is the ratio of accepted parts count to total count produced.


Terminologies used in the OEE Formula:

Ideal Cycle Time: Theoretical fastest possible time required to manufacture one piece.

Planned Production Time: Total scheduled  production time fort the production asset / equipment.

Good Count: Parts  manufactured with Zero defects.

Fully Productive Time: Producing only good pieces, as fast as possible, with no stop time.


OEE as BENCHMARKS:

1) Perfect Production OEE= 100%

2) World-class or Reasonable long-term goal-OEE > or = 85% 

3) Unacceptable:OEE< 65% 

4) 60% OEE is fairly typical manufacturers  meaning there are tremendous opportunities for improvement.

5) 40% OEE is  for manufacturing companies that are just  Improving their manufacturing performance.


TAED as Plant/Shop Floor Metrics:

Target: Real-time production target driven by the planned rate of production

Actual: the actual production count

Efficiency: The ratio of Target to Actual in terms of a percentage

Downtime:  Unplanned stop time for the shift updated in real-time focusing on a key actionable improvement area.


Benifits of OEE (Overall Equipment Effectiveness):

  • Identifying Equipment Inefficiencies.
  • Improvement in equipment/asset Utilization and hence performance:
  • Detection of equipment failure and so reduced Downtime.  
  • Waste (loss) Identification for minimizing Waste and Rework.
  • Streamlining the operations.
  • Enhancement in Labor Productivity.
  • Setting Performance Benchmarks.
  • Decision Making. through derived data.
OEE





Location: India

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