Improving OEE: Analyzing the Six Big Losses

improving-OEE--analyzing-the-siz-big-lossesOverall Equipment Effectiveness, or OEE, has several benefits over simple one-dimensional metrics like machine efficiency. If you are not meeting demand and have a low OEE (equipment is underperforming) then you know you have an equipment effectiveness problem. If equipment is operating at a high OEE but not meeting customer demand, you know you have a capacity problem. Also, OEE lets you understand if you have spare capacity to keep up with changes in demand.

Once you have cleared the important hurdle of configuring and collecting OEE data, what do you do with it to start improving OEE? The entire purpose of OEE is to highlight losses, so all losses must be analyzed, prioritized, and minimized. This can be a bit overwhelming at first, so where do you begin?
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Calculating OEE: Formulas for Peak Performance

oee2Overall Equipment Effectiveness (OEE) is a manufacturing performance metric that is used to identify lost opportunities and measure improvement efforts.

OEE combines downtime, speed, and quality losses into one metric to determine how much quality product is produced compared to how much should have been produced in a given time. Essentially, OEE measures the percentage of time that is actually productive. Calculating OEE is done by multiplying three factors together:
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