Overall equipment effectiveness (OEE) is the answer to the question that all the manufacturers have been asking: How do I compare to my competition? OEE measures each piece of machinery or equipment to gather data on how effective it is. This is done by taking the product of the availability of the equipment, the quality of the product produced on the equipment, and the performance as compared to theoretical maximum capacity and bringing them together.
Unfortunately, companies tend to get the wrong idea about OEE and think that the emphasis is on the Overall. They think that taking the complete output, availability of the equipment’s average and production capability and putting that all together creates the OEE. That is, in fact, incorrect.
To find the real OEE, companies need to put the emphasis particularly on the Equipment individually. To find the OEE you have to spend time with each specific piece of equipment and calculate their productivity based on their intended use.
To learn more about OEE, read the full article on LNS Research’s website.