Overall Equipment Effectiveness Copy



Overall Equipment Effectiveness

The Overall Equipment Effectiveness (OEE) of a machine or set of equipment is a Key Performance Indicator (KPI) that indicates the equipment’s overall operational performance. In essence, OEE is a measure of the actual output that was produced with a machine, compared with the maximum output that could be expected from the machine over the same period of time. OEE takes into consideration the cumulative impact of three factors: the equipment’s availability (percent of scheduled production time in which units are actually produced, also called the Machine Operating Time), its performance rate (percent of material produced compared to standard), and the quality of its output (percent of good material produced compared to all material produced during the Machine Operating Time). In equation form, OEE is the multiplication of these three factors: OEE = % Availability x % Performance x % Quality.

Continuously and visibly monitoring and reporting OEE provides the basis for achieving optimum operational efficiency. When implemented on key manufacturing equipment, all levels of the manufacturing organization will be able to take greater control of the daily management, and improve the utilization of those plant assets.

In short, this will save the company money while increasing production output. In addition, utilizing automated data collection and OEE measuring systems that are highly visible and easy to use, such as OEM Partner’s Remote Monitoring solutions, saves enormous effort and delivers highly visible, real-time intelligence on the overall equipment effectiveness of a machine, a work cell, or a plant. This allows operators and supervisors to proactively track, monitor and respond to operational issues as well as measure and justify ongoing improvement efforts.

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