Overall Equipment Effectiveness

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Overall Equipment Effectiveness (OEE) is a measure comparing how well manufacturing equipment is running to the ideal plant. OEE incorporates not only Availability but also Performance Rate and Quality Rate. In other words, OEE takes an holistic view of all losses that impact on equipment performance: not being available when needed; not running at the ideal rate and not producing first pass A1 quality output. Typical losses include:

Availability

Planned downtime
Set up time
Unplanned recorded downtime or breakdowns

Performance Rate

Reduced speed
Minor unrecorded stoppages

Quality Rate

Rejects
Rework
Yield and Start up losses

Many companies who recognise the important role equipment and process performance have on bottom-line results are using improvement programmes such as Total Productive Maintenance (Total Productive Manufacturing)and Lean Manufacturing to cost effectively maximise Overall Equipment Effectiveness through the elimination or minimisation of all losses.

Various equations exist to help us measure OEE which is based on OEE = Availability x Performance Rate x Quality Rate, however many companies are finding the simple high level measurement of OEE created by reducing the equations where: OEE = Good Output Produced/(Required Production Time x Ideal Rate)

There are "golden rules" associated with OEE as defined by Laurence Richardson and generally available. An example would be no individual piece can exceed 100%.

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