Overall equipment effectiveness
Overall equipment effectiveness[1] (OEE) is a measure of how well a manufacturing operation is utilized (facilities, time and material) compared to its full potential, during the periods when it is scheduled to run.
An OEE of 100% means that only good parts are produced (100% quality), at the maximum speed (100% performance), and without interruption (100% availability).
By measuring OEE and the underlying losses, important insights can be gained on how to systematically improve the manufacturing process.
OEE is an effective metric for identifying losses, bench-marking progress, and improving the productivity of manufacturing equipment (i.e., eliminating waste).
[citation needed] The generic form of OEE allows comparison between manufacturing units in differing industries.
9 Major Downtime Losses Affect Availability[citation needed] Each of the three components of the OEE points to an aspect of the process that can be targeted for improvement.
The Loading Metric is a pure measurement of Schedule efficiency and is designed to exclude the effects how well that operation may perform.
The Availability Metric is a pure measurement of Uptime that is designed to exclude the effects of Quality and Performance.
The Quality Metric is a pure measurement of Process Yield that is designed to exclude the effects of Availability and Performance.
Specifically, the goal of TPM as set out by Seiichi Nakajima is "The continuous improvement of OEE by engaging all those that impact on it in small group activities".
To achieve this, the TPM toolbox sets out a Focused improvement tactic to reduce each of the six types of OEE loss.
Once an asset efficiency is stable and not impacted by variability in equipment wear rates and working methods.
Combining OEE and TPM Focused improvement tactics creates a leading indicator that can be used to guide performance management priorities.
In such a condition, higher quality may be far more important in a proper evaluation of efficiency than performance or availability.
