Overall Equipment Effectiveness (OEE)
What it is and How it works
OEE is the efficiency and effectiveness measure of a process or machine and takes into account the various sub-components of the manufacturing process: Availability, Performance and Quality.
The basic OEE formula is availability times performance times quality, which in equation form is:
1. Availability
Refers to a work center being available for production when scheduled. The availability component of OEE allows for a determination of lost production due to downtime.
Availability is calculated as:
2. Performance
Is determined by how much waste is created through running at less-than-optimal speed. It allows for a determination of how much production was lost by cycles that did not meet the ideal cycle time.
In practice, it is calculated as:
3. Quality
Identifies time wasted when producing a product that doesn’t meet quality standards.
It can be calculated as:
For the equations just mentioned:
Preferred OEE calculation
OEE is the ratio of Fully Productive Time to Planned Production Time.
Schedule Loss is not included in OEE calculations since there is no intention of running production.
