Overall Equipment Effectiveness or OEE for short is the gold standard for measuring manufacturing productivity. It helps identify and track the percentage of manufacturing time, that is truly productive in a workplace. If you were to achieve an OEE rating of 100% this would mean the company is manufacturing only Good Parts. As fast as possible, with no Stop Time.
- Only Good Parts = 100% Quality
- As fast as possible = 100% Performance
- No Stop Time = 100% Availability
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Measuring OEE | How Does It Work
Measuring OEE is a manufacturing best practice. By measuring OEE and the underlying losses, you will gain important insights on how to systematically improve your manufacturing process. OEE is the single best metric for identifying losses, benchmarking progress, and improving the productivity of manufacturing equipment.
The simplest way to calculate OEE is as the ratio of Fully Productive Time, to Planned Production Time. Fully Productive Time is just another way of saying manufacturing only Good Parts as fast as possible (Ideal Cycle Time) with no Stop Time. Hence the calculation is: OEE = (Good Count × Ideal Cycle Time) / Planned Production Time. Although this is an entirely valid calculation of OEE, it does not provide information about the three loss-related factors: Availability, Performance, and Quality.
OEE Ratings At R&M
R&M Powder Coating UK is a premier powder coating specialist. Therefore, we measure OEE here at R&M on a daily basis. We do this by using the preferred OEE calculation which is based on the three OEE Factors: Availability, Performance, and Quality. By using a multiplying equation consisting of productivity (what’s your theoretical output?) times by quality (which is your reject rate) times by the availability of your plant (down time). So those three inputs times together, all worked out could be 100%. One of our key performance indicators as a company is to achieve an OEE figure of 90%. This is throughout the year and we are at our 90% target.
World Class OEE is defined as having a score of 85% or better. Therefore, we are hitting our target and achieving world class results. However, we are always striving to find ways to improve our overall OEE percentage on a daily basis.
You can find out a lot more information about OEE and basis behind how it works and the multiplying factors by visiting the following website www.oee.com
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