Overall Equipment Effectiveness (OEE) is the preferred metric for measuring manufacturing productivity. OEE identifies the percentage of manufacturing time that is genuinely productive – with a score of 100% characterizing ideal production. While it’s not possible to achieve a perfect OEE score, as that would represent manufacturing with zero errors and no downtime, it is possible to improve OEE through optimized asset performance.

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Benefits of Using Overall Equipment Effectiveness (OEE)

Put simply, overall equipment effectiveness (OEE) is valuable as both a baseline and a benchmark for manufacturing productivity. Used as a baseline, OEE tracks progress for process or equipment efficiency. OEE as a benchmark, however, lets organizations see how their manufacturing processes compare to industry standards, or how a piece of equipment performs compared to a similar asset. It’s incorrect to assume OEE only provides a high-level assessment of manufacturing efficiency. The real benefit of OEE is knowing where and how to make improvements. Because OEE breaks down efficiency into hard numbers based on quantifiable components – availability, performance, quality – it makes discovering and addressing bottlenecks more easily identifiable.

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