Creating transparency with OEE
Overall equipment effectiveness (OEE) is an important machinery KPI relating to production and is derived as a product of the KPIs below:
- Availability of the machine: how much time did the machine have to run vs. how much time it actually spent running
- Performance: how much could the machine have produced vs. the machine’s actual output volume
- Quality: how many units and production were defective?
One point to remember here is that OEE is a KPI that cannot be applied across all machines and certainly not across all sites. Instead, it is primarily used to compare the performance of one machine with itself. Individual values are also considered very differently across the industry.
What OEE as a KPI means for you
Calculating overall equipment effectiveness helps you to analyse the various opportunities for improvement at your business and which action area should be given the highest priority. If you have only small losses in terms of performance and availability but high losses in relation to quality, then you should focus on quality as a matter of importance. From this information, you can then identify problems quickly and effectively, and resolve them accordingly.