An Introduction to OEE

Overall Equipment Effectiveness (OEE) is the leading standard for measuring manufacturing productivity that, when applied correctly, can provide multiple benefits and give manufacturers a competitive advantage. OEE works based on a numerical value assigned to improvement opportunities and factors in the loss of availability, performance, and quality. Using this data, the management can make informed decisions to better utilize production capacity, all while eliminating bottlenecks and identifying potential improvements.   

Considering the importance and significance of metrics like performance, quality, and machine availability, it becomes clear why manufacturers want to keep track of the insights they provide. Armed with this knowledge, they can effectively control their production and monitor key areas and processes.

Manufacturers experience various kinds of losses but the six types seem to be the most significant. The main losses that can help operators understand the reasons behind a decrease in OEE include equipment failure, setup and adjustments, idling and minor stops, reduced speed, process defects, reduced yield.