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What is meant by OEE?

What is meant by OEE?

OEE (Overall Equipment Effectiveness) is the gold standard for measuring manufacturing productivity. Simply put – it identifies the percentage of manufacturing time that is truly productive. An OEE score of 100% means you are manufacturing only Good Parts, as fast as possible, with no Stop Time.

What is OEE and how do you calculate OEE?

In practice, OEE is calculated as:

  1. OEE = (Good Count × Ideal Cycle Time) / Planned Production Time.
  2. Availability = Run Time / Planned Production Time.
  3. Performance = (Ideal Cycle Time × Total Count) / Run Time.
  4. Quality = Good Count / Total Count.
  5. OEE = Availability × Performance × Quality.

What is difference between efficiency and OEE?

Let’s make a brief summary, for a better understanding of the difference between overall effectiveness and overall efficiency: Overall equipment effectiveness means to use machines up to the limit; Overall equipment efficiency means to use machines up to the limit and with minimal resources.

Why is OEE important?

OEE is important because it measures machines, not people OEE provides a common language for production teams, operation managers, and management. For teams, it is crucial that everybody understands that the OEE measurement does not criticize people. Its sole purpose is to improve the machine and/or the process.

What is ideal cycle time?

Ideal Cycle Time is the minimum cycle time that your process can be expected to achieve in optimal circumstances. It is sometimes called Design Cycle Time, Theoretical Cycle Time or Nameplate Capacity. Example: A conveyor system is scheduled to run for two 8-hour (960 minute) shifts, with a 30-minute break per 8 hours.

Why is OEE used?

OEE (Overall Equipment Effectiveness) is a universally accepted method for measuring the improvement potential of a production process – with one simple number. Measuring makes it easier to improve, and improving productivity (by eliminating waste) is the core objective of Lean Manufacturing.