OEE Explained in simple terms
Plus 2 Quotes & 1 Image to kindle your thoughts
What is Overall Equipment Effectiveness (OEE) and how relevant / important is this? Many professionals just look at OEE as a number and do not understand the significance / foundation of the OEE.
OEE is a measure of how effectively a machine is utilised. It is calculated by looking at 3 parameters.
Availability - how much time the machine is running, as against the plan. For e.g. Out of 8 hours, there is a breakdown of 2 hours and a 30 min set up time. Availability= Operating time /Planned Production Time = 5.5/8=68.75%
Performance - In this 5.5.hours, how many products are produced, as against the ideal run rate.E.g. the machine produced 200 pieces in 5.5 hours (@ C/T=99 sec). Let us assume the ideal cycle time is 72sec, we could’ve produced 275 pieces in the same 5.5 hours. Performance = 200/275 = 72.72%
Quality - of this 200 pieces, only 190 pieces are good. Quality = 190/200 = 95%
When we multiply all these 3 parameters, we get the OEE. OEE for this example = 68.75% X 72.72% X 95% = 47.5%
So, we are utilising the machine only for 47.5% .
To improve this OEE, we need to focus on the parameter that scored low. In this case, Availability. We need to reduce the breakdown and also reduce the changeover time to improve the overall OEE.
You can also watch our video on OEE in Youtube. Click on the below links to watch.
2 Quotes for the Week:
“If you’re following your calling, the fatigue will be easier to bear, the disappointments will be fuel, the highs will be like nothing you’ve ever felt. I’d”
― Phil Knight in Shoe Dog“In the beginner’s mind there are many possibilities, but in the expert’s mind there are few” —Shunryu Suzuki
1 Image for the Week:
