management
Overall equipment effectiveness
 

Notice:

OEE is a very severe test since it is the product of three factors. If each factor were a high 90%, then the OEE would be only 72%. (Actually, 85% is good performance in world terms). OEE is directly related to (the 6 big losses: Breakdown and Changeover form the availability measure, Minor Stoppages and Reduced Speed form the performance measure and Non conforming items and changeover scrap form the quality measure The components of OFF should be tracked separately. It is a good idea to display 4 graphs; one for overall OEE, and one each for the 3 elements. Below each graph, the reasons may be given in the form of a fishbone diagram.

 

Where there are several similar machines, say presses a very useful exercise is to identify the highest performing machine on each of the three dimensions, and then to calculate the current 'test demonstrated practice". This would be the current best OEE in the shop if the best feature of each were used. This gives an immediate, attainable target. Find out why or how the best figures are obtained for the best machine in each category.

OEE figures often come as a shock to management. They should certainly be calculated before any capital acquisitions are made, and as an indicator for continual improvement activities.