Total Productive Maintenance can be a very powerful strategy in supporting the Just in Time System. In fact, it can be a powerful strategy in supporting any organization in general. The foundational measurement that is used in TPM is Overall Equipment Effectiveness. Overall Equipment Effectiveness or OEE as it is often referred to, is a key performance indicator used in the manufacturing industry to determine the efficiency of its plant operation. Most companies do not have a full understanding of their capacity on manufacturing equipment. OEE measures and makes your plants' effectiveness visual for everyone to see. You can then create actionable steps to improve quality and production, save time, and eliminate waste. It is important to note that OEE does not tell you what to improve, rather it is a gauge or a KPI to help you understand where to improve.
How is OEE Calculated?
OEE is calculated by multiplying Availability by efficiency and quality. This gives you a percentage that you can use as an improvement gauge. Let’s understand each of these three areas of OEE a little better.
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