Learn what OEE is, how to calculate and the importance of this indicator
OEE (Overall Equipment Effectiveness) is the main indicator of the overall effectiveness of equipment, being responsible for optimizing production factors.
How efficient are the processes developed in the production line of the company that you work for? Are there many stops for maintenance, for setup time or lack of material? Does daily production income follow the goal set by companies? If the answers to these questions are negative, know that this company's OEE index is low.
But what is OEE? Have you ever heard of this term? Do you know how it can be used?
In this article, I will answer all these questions. Check out some topics such as:
- What is OEE?
- Example of application of the OEE
- How to calculate the OEE?
- What is World-Class OEE?
- What are the advantages of OEE?
Let’s go?
What is OEE?
OEE (Overall Equipment Effectiveness) is an indicator extremely used in TPM programs to measure the overall efficiency of organizations.
The OEE is a product of the indicators of availability, performance and quality.
The OEE was developed by the Japan Institute of Plant Maintenance and according to this institution, this indicator must be able to answer 3 questions within the organizational environment:
- How often is my equipment available for operation?
- How fast am I producing?
- How many products were produced and did not generate production losses?
Thus, the indicator is defined as the metric of each of the three questions:
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To understand a little more about the application of the OEE and how the indicators that make up this concept work, we will show you an example down below.
Example of application of the OEE
A manufacturing industry, which works with 3 different shifts (6h - 14h, 14h - 20h and 22h - 06h), and has equipment that remains connected for 24 hours a day.
Thus, an analysis was made according to the 3 indicators that make up the OEE.
1. Availability
Availability is an indicator that takes into account all downtime on the production line. These are events that do not happen daily, such as maintenance stops, periods when the material is missing for production, setup and others.
Considering that each shift has 1 separate hour for meals, the company's total standard production time is 21 hours per day.
However, it is not always that a machine works during all these hours. If, in one day, a machine stays stopped for 3 hours for issues, such as those mentioned above, the production time available will be 18 hours.
Therefore, your availability of work will be:
And, for the matter in question:
2. Performance
The performance index in the OEE represents the relationship between the production speed on the line and the speed at which wherein equipment was designed.
The machine doesn’t work at the ideal speed when there are failures due to the inefficiency of the operators, lack of training of employees and materials that do not meet the desired specification.
This machine was supposed to produce 1500 pieces in 18 hours. However, only 1100 pieces were produced, which corresponds to 16 hours of net production, the other 2 hours were lost because the machine worked below the ideal speed.
Soon the machine's performance was:
3. Quality
Quality, in OEE, is an indicator that relates the quantity produced that really meets quality standards and can be used, with the total quantity produced.
Of the 200 pieces produced in the company, 4 were refugees and 9 were reworked.
Therefore, this machine presented a Quality of:
How to calculate the OEE?
The calculation of the OEE does not require complex accounts, it is enough to multiply the 3 factors (Availability, Performance and Quality) to obtain the result of this indicator.
In the example cited above, the result obtained from this account was 71.43% , that is:
Availability x Performance x Quality = OEE Index
To raise a company's OEE, it is necessary for the entire team to be aware of what is happening on the factory floor and in real-time.
What is World-Class OEE?
World-Class OEE is an indicator used as a global benchmarking of companies, that is, this indicator is a reference index.
According to studies developed, the most efficient company in the world has an index of 85%, while the others have an OEE of 60%.
Therefore, in an extremely competitive market, this comparison makes companies review the work being done in order to achieve the best possible results.
What are the advantages of OEE?
OEE is an indispensable index in the competitive market!
Managing a company is not a simple task, often knowing where the problems are on a production line becomes a real challenge for managers.
With the use of parameters such as OEE, it is possible to understand how the efficiency of a machine directly influences production processes.
Therefore, be sure to make use of this indicator in your company. When using OEE, I'm sure it will be much simpler to identify production problems and thus optimize the production of the plant where you work!
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