Lean Strategies International
Menu

Glossary

Would you like to add a term to the community? Click Here!

Overall Equipment Effectiveness (OEE)

6/24/2022

0 Comments

 
Overall Equipment Effectiveness (OEE)
Click on the Photo to Subscribe to Our YouTube!
  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.  
  1. Availability is our first Measure.  Here we look at a machine’s ability to be available for production when scheduled.   Production may be halted due to many different forms of downtime.  Some examples may be machine failures, issues with raw materials that are needed, or some problems with scheduling and possibly changeover issues. By comparing scheduled run time to actual run time, we are able to determine the amount of production that was lost from different issues that may have occurred.
  2. Next we have Efficiency.  The efficiency measure looks at the number of items produced against a target number and determines the amount of waste when running at different speeds. 
  3. The final category that OEE looks at is quality.  This measure looks at the total quantity produced correctly the first time and the total quantity produced.  This measure helps reveal abnormalities and forms of waste that may be hidden from plain sight.
Combined these three categories help calculate the OEE percentage that is used as a gauge.  From here the three categories can be broken down into what is known as the six major losses, which are:
  1. Breakdowns.
  2. Setups and adjustments.
  3. Idling and minor stops.
  4. Reduced speed.
  5. Quality losses.
  6. Start-up issues.
0 Comments

Your comment will be posted after it is approved.


Leave a Reply.


    Glossary


    Subscribe below and receive lean, six sigma, operations, supply chain, logistics, distribution and business terms in your mailbox.

    CLICK HERE TO SUBSCRIBE

    Categories

    All
    #
    01. Add A Term
    3D
    3PL
    3P's
    5 Principles
    5S
    5 Why's
    6σ
    8 Wastes
    A
    B
    C
    D
    E
    F
    G
    H
    I
    J
    K
    L
    M
    N
    O
    P
    Q
    R
    S
    T
    U
    V
    VSM Shapes
    W
    X
    Y
    Z

    Archives

    March 2023
    February 2023
    January 2023
    December 2022
    November 2022
    October 2022
    September 2022
    August 2022
    July 2022
    June 2022
    May 2022
    April 2022
    March 2022
    February 2022
    January 2022
    December 2021
    November 2021
    October 2021
    September 2021
    August 2021
    July 2021
    June 2021
    May 2021
    April 2021
    March 2021
    February 2021
    January 2021
    December 2020
    November 2020
    October 2020
    September 2020
    August 2020
    July 2020
    April 2020
    March 2020
    November 2019
    October 2019
    August 2019
    July 2019
    June 2019
    May 2019
    April 2019
    March 2019
    February 2019
    January 2019
    December 2018
    November 2018
    October 2018
    September 2018
    August 2018
    July 2018
    June 2018
    May 2018
    March 2018
    February 2018
    May 2017
    April 2017
    March 2017
    February 2017
    January 2017
    December 2016
    November 2016
    October 2016
    September 2016
    November 2015

Lean Strategies International LLC.
Follow Us on YouTube or Our Other Channels Below.
             ©2015-2021 Lean Strategies International LLC.  
  • Home Page
  • Services
    • Training >
      • Waste Training
      • Introduction to Lean
      • Lean Champions >
        • Lean Six Sigma White Belt
        • Lean Six Sigma Yellow Belt
      • Lean Tools You Can Use Series! >
        • The 5S System
        • The ©Gemba Methodology
        • The FISH Methodology
        • The CURE Methodology
        • Quick Changeover with REDUCE
        • Mistake Proofing and the Poka Yoke System
        • The Just in Time System
  • Lean Resources
    • Listen to The Gemba
    • Glossary
    • Lean and Six Sigma Quotes
    • Recommended Reading
    • Events
    • Masters of Lean and Six Sigma
    • Career /Jobs
  • Store
    • Workspace
  • Home Page
  • Services
    • Training >
      • Waste Training
      • Introduction to Lean
      • Lean Champions >
        • Lean Six Sigma White Belt
        • Lean Six Sigma Yellow Belt
      • Lean Tools You Can Use Series! >
        • The 5S System
        • The ©Gemba Methodology
        • The FISH Methodology
        • The CURE Methodology
        • Quick Changeover with REDUCE
        • Mistake Proofing and the Poka Yoke System
        • The Just in Time System
  • Lean Resources
    • Listen to The Gemba
    • Glossary
    • Lean and Six Sigma Quotes
    • Recommended Reading
    • Events
    • Masters of Lean and Six Sigma
    • Career /Jobs
  • Store
    • Workspace