OEE is a measure of how well a manufacturing operation is utilized compared to its full potential. It takes into account three key factors: Availability, Performance, and Quality. By analyzing these components, manufacturers can identify areas for improvement and optimize their production processes.
To calculate OEE, you need to determine the values of Availability, Performance, and Quality, and then multiply these three factors. Here’s how each component is calculated:
Availability
Availability measures the percentage of scheduled time that the equipment is available to operate. It is calculated as:
Planned Production Time: The total time that the equipment is scheduled to operate.
Operating Time: The actual time the equipment is running (Planned Production Time minus Downtime).
Performance
Performance measures the speed at which the equipment operates as a percentage of its designed speed. It is calculated as:
Ideal Cycle Time: The fastest possible time to produce one unit.
Total Count: The total number of units produced.
Quality
Quality measures the percentage of good units produced out of the total units started. It is calculated as:
Good Count: The number of units that meet quality standards.
Total Count: The total number of units produced.
Once you have the values for Availability, Performance, and Quality, OEE is calculated by multiplying these three factors together:
Measuring OEE provides several benefits:
Identifying Bottlenecks: Helps pinpoint where inefficiencies are occurring.
Improving Productivity: By addressing the issues identified, production processes can be streamlined.
Cost Savings: Reducing downtime, improving speed, and ensuring quality leads to cost savings.
Benchmarking: Allows for comparison against industry standards and best practices.
While OEE is a powerful tool, measuring it accurately can be challenging:
Data Accuracy: Ensuring accurate and consistent data collection.
Complex Processes: Handling complex production environments with multiple variables.
Cultural Resistance: Overcoming resistance to change within the organization.
Understanding and measuring OEE is crucial for any manufacturing operation aiming to improve efficiency and productivity. In the next part of this series, we will explore how to implement OEE monitoring using Peakboard Dashboards, providing practical insights and real-world examples.
Hello everyone, I'm Paul.
Currently, I'm working at Peakboard America in Chicago, IL as a Software Consultant. My journey with Peakboard began when I did my dual studies in Digital Business Management.
I focus on customer projects, applying my skills directly where they’re needed most. I’m passionate about finding innovative solutions to enhance data visualization and communication for our clients.
