OEE (Overall Equipment Effectiveness)

OEE phases clock

The OEE measure is unique as a Key Performance Indicator in that it provides a holistic view of asset utilisation. It drives an organization to examine all aspects of asset performance in order to ensure that they are obtaining the maximum benefit from a piece of equipment that is already bought and paid for.

Once OEE is calculated a Pareto can be formed which shows very clearly where the main loss or losses have occurred which then leads to specific and direct corrective action improving OEE.

A further benefit of measuring OEE is the increased interaction of the shopfloor with regard to daily data collection and OEE recording. Shopfloor personnel not only take the responsibility for the daily OEE routines but also significantly contribute to problem resolution by understanding and improving their area of operation.

Production Line

Benefits of Overall Equipment Effectiveness Include:

Higher Availability of Machines and Equipment

  • Increase in machine or asset uptime
  • Just in Time delivery to the customer
  • Increased asset flexibility

Improved Machine Capability

  • Increased rate of production output
  • Improvement in product quality
  • Stable and reliable process

Business Financial Impact

  • Reduction in finished goods stock holding
  • Reduction in manufacturing cost per part
  • Improved business performance
  • Reduction in potential capital expenditure

Kaizen Institute Consulting group has several success stories about OEE multiple production environments

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