Measuring Overall Equipment Effectiveness (OEE)

OEE Practical-1Measuring OEE

WHAT IS Overall Equipment Effectivenes (OEE)?

OEE (Overall Equipment Effectiveness) is a “best practices” metric that identifies the percentage of planned production time that is truly productive.

An OEE score of 100% represents perfect production: manufacturing only good parts, as fast as possible, with no downtime.

The term OEE was first used by Japanese maintenance consultant and teacher Seiichi Nakajima in the 1960s. He is commonly referred to as the “Father of TPM” and he stated that continuous improvement of OEE is one of the main goals of TPM (Total Productive Maintenance).

By optimising OEE,

you can :

• Increase capacity,
• Reduce costs,
• Improve quality,
• Increase efficiencies

Measuring OEE is closely linked to improvements in performance, availability, and quality – because these are the elements by which it is measured.

Measuring OEE gives manufacturers improved visibility into individual asset health, helps drive down costs, and improves both asset and process effectiveness.

Increment 1% OEE This improvement resulted in savings of :

• €50 per hour or
• €1200 for that day. five days a week, equates to
• €300,000 in annual savings.

*example taking data from a real company in the automotive sector