Why measure OEE
The popularity of OEE primarily consists in that it is the only well-balanced manufacturing indicator in general use (it takes all circumstances that impact manufacturing into consideration). If we forget any factor or contrarily over-emphasise it, a deficiency is always identified and the OEE value either does not change, or shall even drop.
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OEE combines the factors of time, speed and quality in a sensitive and useful manner.
In simple terms, the calculation of OEE comprises answers to 3 questions.
1. Machine Time Does the machine manufacture, i.e., make the product, or not?
2. Speed At what speed does the machine manufacture, i.e., make the products?
3. Quality How the pieces made on the given machine conform to specifications?
In a perfect world, the value would be 100%. In reality, a world class value is considered to be 85%. In practice, most companies do quite a lot of hard work to achieve 65% OEE.
Where can reserves be sought? Let’s look at the individual components of OEE and their definitions.
Faults and failures
Changes to other products
Delayed material deliveries
Tools or component exchanges
Production start-up or modification
The percentage performance loss factors include:
Idling and short machine downtimes (congestion, tripping of circuit-breakers, etc.)
Reduced speed, long cycle time, lower capacity
The loss factors that lower the quality percentage include:
Rejects, defects, rework
Variability of the input material
Loss during the start of production
Defects and inaccuracies of the equipment and tools, etc.
! It is important to remember that according to definition, the OEE is always related to the machine (line, manufacturing equipment, …), not to the product, standards, etc.!
Change to a higher gear
OEE measurement is only the first step. If you want to increase total productivity, start by targeting one or more of the losses stated above, e.g., the reduction of downtime. However, increased productivity and OEE is only the first step on the path to an optimal manufacturing process. If you want to continuously optimise the results and achieve the ideal 85%, it is necessary to gradually move from OEE monitoring and measurement to use of predictive and post-prescriptive manufacturing solutions.
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Prove it for yourself in your own production plant – take advantage of our offer and give Merz OEE a try.