OEE(Overall Equipment Effectiveness) is the result of three components:
- Availability indicator - shows how much time the machine was available for operation. It includes planned technological breaks, breakdowns, downtime and other unplanned breaks that prevented the machine from working.
- Performance indicator (Performance) – shows how many products were produced during the machine's operation time, compared to the maximum theoretical machine performance. This metric takes into account quality issues, startup issues, or production changes.
- Qualityindicator (Quality) – shows how many products produced by the machine comply with the quality requirements. It is calculated as the ratio of good products to all products produced.
This indicator allows you to identify weak points in the production process, which allows you to take actions to increase production efficiency. Due to its complexity, it allows you to take properly targeted corrective actions necessary to optimize the production process, improve machine efficiency, and thus increase the company's profits.
By analyzing the value of the indicator for individual machines, we can determine the operating time of each of them and indicate the areas and processes most requiring improvement in order to plan optimization activities in these places.
The OEE indicator defines the extent to which we used our production capacity. It is the product of three other indicators:
1. Availability
It is the ratio of the actual working time to the total time during which the operation of the machine or group of machines was planned. The value of the indicator is not influenced by any planned downtime, including downtime resulting from, for example, single-shift work.
2. Quality
It is the ratio of good (free of any defects) manufactured products to all manufactured products.
3. Performance
It is the ratio of all products produced to production capacity, i.e. the expected number of products that would be produced under ideal conditions without any disruptions, at the nominal speed.
The OEE indicator shows the efficiency of equipment use and allows for a percentage of the level of use of the machinery. It can range from 0 to 100%. The higher it is, the more efficient the machine, production line or factory is.