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.
Download our overall equipment effectiveness cheat sheet to get a better understanding of the components of OEE. The sheet includes OEE calculation examples.
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.