Overall Equipment Effectiveness is an excellent tool for measuring how productive you truly are based on planned production time.
An OEE calculation segments the performance of a manufacturing asset or process into three measurable elements:
Each of these element’s tie into a specific aspect of the process which can then be evaluated for areas of improvement. The result is a better understanding of where and why a piece of equipment fails or is experiencing a performance loss, which leads to more efficient maintenance processes and reduced downtime.
How to calculate OEE
OEE = Availability × Performance × Quality
Notice the interdisciplinary and collaborative nature of the formula. In order to be able to calculate your OEE and work on improving your effectiveness you need people, processes, and systems from departments such as Production, Maintenance, Engineering, Warehouse and Quality Assurance working together.
According to research by Reliable Plant, an OEE score of 85 percent is thought of as “world-class” and the average industry benchmark is approximately 50 percent. Whatever your actual score, OEE is only a valuable Key Performance Indicator if you use it to achieve realistic goals.