Overall Equipment Effectiveness (OEE)


 

O'PEEP'S OVERALL EQUIPMENT EFFECTIVENESS EXPLANATION 

You need cement and that's why you rented a cement mixer. You pay the rent per hour. You are paying also if the cement you mix is bad. You pay if you take a half-hour coffee break in between and turn the thing off. You pay the same if you set the mixer to half speed and produce cement more slowly. If you have to fetch new material or tighten screws in between - you pay for the equipment. Overall Equipment Effectiveness (OEE) would be a good metric for you to produce as much cement as possible in as little time as possible.

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OEE (Overall Equipment Effectiveness) is a Lean Metric that compares the potential machine performance to the actual performance. It is the product of three factors: Availability, Performance, and Quality.
 

WHY WORK WITH OEE?

  • To improve equipment / machine productivity
  • To increase good quality output
  • To support continuous improvement: With OEE you can identify your levers for improvement: Should you work on your machine output, on your quality, or on your machine availability? These numbers will help you find this out. And OEE will also show you how you are improving.
  • To support investment decisions: Before buying new equipment, you might want to check how much more you could produce with your existing equipment. How much would you have to increase your OEE in order to avoid the investment? Is it feasible? From our experience, many investments can be avoided when working smartly with OEE.
  • To improve people productivity: You can use OEE to eliminate shifts, thus increasing people's productivity.
  • To decide on site allocations: Looking at OEE 1 and OEE 2 can also tell you where to produce what.
  • To compare sites regarding performance: Be careful if you build on OEE to compare sites. Often it‘s like comparing apples to pears as batch sizes/ lot sizes are different, product complexity varies, and sites work with different equipment.

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Click here and get a taste of this special OEE eLearning Course. It will take you about 5 min.

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OEE 1 OR OEE 2?

Depending on the calculation of the machine availability, OEE 1 and OEE 2 can be distinguished:

  • OEE 1 is calculated based on the total available time, which would be 24/7/365 to see what the equipment could potentially deliver.
     

  • OEE 2 is calculated based on the planned production time, e.g. 15 shifts per week. So, you can see how good your efficiency is in the time which you have planned to produce.

HOW TO CALCULATE OEE?

An overview on OEE calculation. Overall Equipment Effectiveness. How to set-up Availability, Performance and Quality by factors. See the explanation what goes into OEE1 and OEE2.
BUILD ON OEE 1 TO...

  • Decide on investments. Can you avoid the investment by producing more using your existing equipment? 


BUILD ON OEE 1 AND OEE 2 TO...

  • Increase the capacity of the bottleneck process. Use OEE 1 to see the potential and OEE 2 to understand the actual efficiency and need for improvement.
  • Identify open capacities in order to transfer products. Use OEE 1 to see the potential and OEE 2 to understand about efficiency and need for improvement.
  • Decide which equipment to get rid of. Use OEE 1 to see how much the equipment is being used overall. Use OEE 2 to understand how much improvement will be required.


BUILD ON OEE 2 TO...

  • Increase the efficiency of any equipment.
     

Would you like to discuss your challenges in setting-up OEE? Reach out to us! Learn more about setting-up OEE and managing with OEE in our eLearnings.

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Click here and get a taste of this special OEE eLearning Course. It will take you about 5 min.

look inside elearning  more info on oee course  

 

Learn more on about setting-up OEE and managing with OEE in our blogposts!

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Should you use OEE to assess how good is your site? What is OEE telling you and what are you missing out?
Interesting insights, good read!

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