How to Start Measuring and Using OEE (Overall Equipment Effectiveness)

Measuring OEE isn't the objective.  Using OEE data to focus your improvement efforts is the key.  This short video summary article will help you get started with OEE.  

Introduction to OEE:

• OEE (Overall Equipment Effectiveness) is a crucial metric in manufacturing for assessing equipment performance.
• It measures how well equipment is utilized in relation to its maximum potential output.

Calculation of OEE:

• OEE is calculated by multiplying three factors: availability, performance, and quality.
• Availability indicates the actual run time compared to potential operating time, accounting for downtime.
• Performance evaluates equipment speed and efficiency relative to its maximum capacity.
• Quality measures the ratio of defect-free products to total products produced, reflecting production quality.

Purpose and Importance of OEE:

• OEE serves as a tool to identify areas for improvement in equipment efficiency.
• It helps in pinpointing losses in availability, performance, and quality.
• OEE facilitates the identification of bottleneck processes, which limit overall system output.
• OEE is a key indicator of Total Productive Maintenance (TPM) and is associated with Lean methodologies.

Application and Measurement:

• OEE can be measured for individual machines to track improvements in reliability and effectiveness.
• It should primarily be applied to bottleneck processes for maximum impact on overall system output.
• Six big losses categorize OEE issues into availability, performance, and quality losses, including breakdowns, changeovers, minor stops, reduced speed, scrap/rework, and startup losses.
• OEE is the product of availability, performance, and quality factors, expressed as a percentage.
• Calculating OEE involves careful planning, data collection, analysis, and implementing actions for improvement, with regular monitoring and adjustment being essential for sustained progress.

Considerations and Limitations:

• Different companies may have varied approaches to calculating OEE.
• Planned stoppages like breaks and changeovers are sometimes excluded from OEE calculations, affecting potential improvement visibility.
• Managers and operators may be incentivized based on OEE figures, which can lead to unintended manipulation.

How to get started with OEE measurement

• Start OEE calculation with problem-solving techniques rather than mere calculation.
• Begin by selecting one or two machines, focusing on the most critical product family, and creating a value stream map.
• Interview machine operators and observe machine performance to gather data.
• Use gathered data to make assumptions about OEE values, initiate improvement processes, and refine calculations gradually.

Course Forward:

• OEE should be followed up with improvement tools like TPM (Total Productive Maintenance) to drive actual enhancements.
• Would you like to improve you skills to guide the improvement efforts (using OEE and other tools) and develop the capabilities to focus on the biggest opportunities in your Site or Region?
• Learn more about our Focused Improvement Leader coaching program!  See the benefits below, and find more details in this link.  https://www.beltcourse.com/focused-improvement-leader-course-page

Sources (Best YouTube Videos on OEE Calculation and Use): 

https://www.youtube.com/watch?v=kqH5Fnado7Y

https://www.youtube.com/watch?v=eLQqaSGjlrw&t=5s

https://www.youtube.com/watch?v=WQDUnE_pepY&t=2s