Benchmarking and Evaluating OEE

Overall Equipment Effectiveness, OEE, is a metric that pinpoints productivity and efficiency in manufacturing operations by comparing true productive time and planned production time. To determine how productive an operation is, it combines three main metrics: availability, performance, and quality.

As a benchmark and evaluating tool, it can be used to compare the performance of production within the industry or in-house. OEE is also used to track data and progress over time to help eliminate waste from an operation.

Evaluating and Measure OEE

What exactly is a good OEE score? Just like tests or exams in school, the best score you can receive is 100%, but that doesn’t happen very often. A score of 100% means that a facility is maintaining absolutely perfect production- no stoppage time, no back-ups, no mistakes. Perfect isn’t always practical.

A score of 85% is considered “world class” and is a more achievable goal than a perfect score. World class or best in class performers have high efficiency in all areas of availability, performance, and quality.

The most common OEE score is 60%, meaning that an operation is only productive 60% of the time.

Laggards are the lowest tier of manufacturers. A score between 30% and 50% indicates extremely low productivity levels which could be caused by downtime or equipment performances.

Minor Stop Index

The minor stop index is a vital metric that measures the number of minor stops per hour that last 10 minutes or less. On average, a production line experiences almost 9 stops per hour (that equals to roughly 7 minutes per hour of downtime!).

Contrary to popular belief, the best in class performers are responsible for more minor stoppage than others. This is because world class performers have put in the time and resources to solve major issues that minor ones, like bottles breaking or label jams, take up most of their time.

Minor stops are the most common problems in the industry that consistently need time and attention.

Improving OEE

The best way to improve overall equipment effectiveness is to identify all problems in your operation. You can’t solve any issues until you’ve found the root of the problem!

According to the Manufacturing Benchmark Study by Informance, best in class performers knew where 99% of their day went, while laggards had no idea where 16.2% of the went! This statistic is alarming to say the least. For more perspective, laggard performers are unaware of where 9 minutes of every hour goes. It’s impossible to improve OEE without identifying the key problems in your operation.

Focusing on reducing short, minor stops will help boost availability in equipment. Availability is a vital metric because it is a critical indicator that most affects OEE improvements.

You can be the best in class

It’s time to raise the bar and become a world class performer. Prevent shutdowns, reduce changeover, and eliminate equipment downtime with our team at Thrive. Our Downtime Tracking System provides real-time data and reporting to aid in increasing efficiency and meeting production goals!

What are you waiting for? Are you ready to Thrive? Schedule a free demo and take the first step to becoming world class!