Overall Equipment Effectiveness (OEE) is an industry standard, versatile measurement for production efficiency. It suits any industry or process.
OEE is the result of three factors, Availability, Performance and Quality, which describe the six big losses. Together these factors form OEE = A x P x Q. Availability is reduced by equipment failure, setup and adjustment. Performance is reduced by idling, minor stops, and reduced speed. Quality is reduced by process defects and startup losses.
Research has shown that improving any of these factors will have a major impact on efficiency. In order to drive operational excellence in any industry or process, it is recommended to monitor OEE and make it a baseline for improvement efforts.
OEE is now universally accepted as a significant Key Performance Indicator (KPI) for all manufacturers. But if we are used to judging performance in the range of 99%, we'll never get there with OEE. Many people still don't know how to interpret it because the number is too low. The second problem is that executive management often discounts it because it is a manufacturing metric, not a business metric. Learn how OEE can help different functions across your industrial operations.