What is OEE – Overall Equipment Effectiveness


What is OEE is a great video created by a group of Lean Thinkers.
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Here the transcript of the video.

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What is OEE?

OEE means Overall Equipment Effectiveness, and it is a proven way to monitor and improve process efficiency.

OEE is a diagnostic tool. It does not give you a solution to your problem.

It is a KPI that measures effectiveness and deviations from effective machine performance.

You can use OEE in TPM and Lean Programs.

The goal is to reduce the six big equipment-based losses:

1) Equipment Breakdown
2) Setup and Adjustment
3) Minor Stoppage
4) Reduced Speed
5) Start-Up Scrap
6) Product Scrap

OEE represents the percentage of good production time on the selected equipment.

The six big losses can be grouped into 3 categories:
A) Availability Loss
B) Performance Loss
C) Quality Loss
and the OEE can be calculated as:

OEE = Availability x Performance x Quality

Remember!

Use OEE as an improvement KPI and not as the final goal of your company.

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