Overall Equipment Effectiveness Boosts Productivity

by make money blogger on February 9, 2010

OEE enables the measuring of the overall efficiency of a piece of equipment or that of a whole manufacturing plant. OEE can have a significant impact towards the productivity of a production system.  Implementation of software systems can changes the OEE score by up to 20% in as little as the first year.  It has been demonstrated that optimising the OEE of only one percent produces a much larger change in the machine’s through put and resultant decrease in the unit cost of the produced items.

The OEE score is derived from three elements: Availability (A), Performance (P) and Quality (Q).

  • Availability is the % of uptime of each manufacturing or plant asset
  • Performance is the % throughput compared with the target set for it
  • Quality is the % of scrap.

To get the OEE score, multiply Availability by Performance by Quality.

Producitivity through Overall Equipment Effectiveness in Use

Overall Equipment Effectiveness is useful as a key performance indicator for factory supervisors.  Whist the principles of the formula are simple, it can be {extremely, highly} laborious to calculate in real world cases.  For this reason, special OEE software are normally used to acquire the data from each part of the plant and make the OEE calculation quickly.  It is important 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 enterprise resouce planning system.

Once the data has been acquired and processed, it is only of benefit once converted into reports that are accurate.  OEE software from the leading players offers a wide choice of reports that can be adapted and drilled down into, to enable the manager to find what he is focused on.

OEE has established itself as the essential element of lean manufacturing. through incremental improvements a production line can reduce its carbon footprint, improve efficiency and decrease departmental silo-mentality as well as uncover and control risk.  Any manufacturing business must understand the details of OEE and how it relates to the lean manufacturing principles as a key force for productivity in the future.

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