What does OEE mean?
OEE is the standard for measuring manufacturing productivity. A high OEE score indicates an efficient factory with high productivity. A low OEE score could mean there is a ‘latent factory’ with unused or poorly used resources that are producing losses where there could be value.
OEE identifies the percentage of manufacturing time that is truly productive. An OEE score of 100% is impossible because it means a factory is only producing perfect products, as fast as possible, with absolutely no down time. In OEE calculation terms that translates to 100% Quality (only perfect product), 100% Performance (as fast as possible) and 100% Availability (absolutely no down time).
OEE is a calculation of all three components:
Availability % x Performance % x Quality % = OEE%
An amazing, world-class OEE score is 85% and a typical score for discrete manufacturers might be around 60%.
OEE highlights the true potential of factories. Measuring OEE (and underlying losses) offers insights into systematically improving manufacturing processes. OEE is the best metric for identifying losses, benchmarking progress and improving the productivity of expensive manufacturing equipment.
Understand it. Measure it. Improve it.
Another way to explain OEE is if you are not meeting demand and your equipment is underperforming (operating at a low OEE), you know you have an equipment effectiveness problem that can be improved. If equipment is operating at a high OEE but not meeting customer demand, you know you have a capacity problem. And even if you are meeting current demand, without OEE you don’t know whether you have spare capacity to keep up with changes in demand.
Calculating OEE is an automatic input of the AspectPL MES. As a lean manufacturing tool, OEE defines the way the manufacturers think, plan, and execute. Measuring OEE can help businesses discover the true potential of a factory and the losses that can easily turn into real value.