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How to Measure Overall Equipment Effectiveness (OEE)?
Axium Robotics & Automation ULC Posted 04/17/2015
The “Overall Equipment Effectiveness” (OEE): a simple but effective way to measure the performance of production equipment.
There are many ways to measure and evaluate the productivity of equipment or a line. One of them is called the “Overall Equipment Effectiveness” (OEE). It considers the availability of the equipment, its performance and the quality of the goods produced. As you will see below, it is easy to evaluate, as long as you do document properly what really happens on the production floor.
The following graph illustrates what is measured by the OEE, the real productive time.
To understand how to calculate it, take a look at this example.
Finally, once you have calculated your OEE, how do you compare with other manufacturers? According to sources*, “world class” manufacturers have an OEE of 85%, which means that they have around 95% at each factor. The average manufacturer is around 60%, representing 85% at each factor*. Those around 40% are trailing the pack and should get thing going to improve their performance.
Finally, our recommendation is to measure and calculate the OEE periodically, once a year as an example. Normally, it should remain constant or, ideally, improve over the years as the personnel improve its knowledge of the equipment.