Frequently Asked Questions: OEE

What is OEE?
OEE stands for overall equipment effectiveness and is the best standard for measuring the effectiveness of any manufacturing process by identifying how much of the manufacturing time is productive.

What determines OEE?
Three factors are measured when determining OEE: availability, performance and quality.

What is availability?
Availability shows how efficient production is during planned production time. It considers all equipment failures (unplanned stops) as well as setup and adjustments (planned stops). A score of 100% means production never stops.

What is performance?
Performance is the measurement of idle time and small stops. If performance is at 100%, then production is always running at max speed.

How is quality determined?
Quality is determined by subtracting the number of defective parts that are produced from the number of quality parts that are produced. A quality score of 100% means that none of the parts produced need to be scrapped or repaired.

How can I determine my OEE?
Overall OEE can determined through the simple equation:
Availability x Performance x Quality = OEE
In order to execute this equation, you must also determine the percentages of your availability, performance and quality.

How can I determine availability?
To determine availability, use the equation:
Run Time/Planned Production Time = Availability

How do I determine quality?
To determine quality, use the equation:
Good Parts/Total Parts = Quality

How do I determine my performance score?
Performance can be determined by using the following equation:
Actual Output / Standard Output

What events hurt my OEE score?
Production slowdowns and stoppages, along with quality rejections, are obvious. Other events such as shift changes and lunch breaks can have a negative impact if you are expecting to have production continue during those times.

Does shutting down the plant have a negative effect on OEE?
No. Plant shutdowns (including holidays and time periods where there are no shifts scheduled) are not included in determining OEE.

What are the most common ways production is lost?
There are six main ways production is reduced. Commonly referred to as the six big losses, they include: unplanned stops, planned stops, small stops, slow cycles, production rejects and startup rejects.

How can tracking OEE help my company?
By tracking your OEE, you will be able to see which areas of production are running efficiently and which areas need improvement. This will allow you to focus on improving those areas, which will  increase your OEE score and level of production.

What is TEEP?
TEEP stands for total effective equipment performance and measures the maximum amount of production capable of being produced.

What is the difference between OEE and TEEP?
OEE measures the amount of time you are productive during planned productive time and TEEP measures the maximum capacity that you can manufacture if you operated 24 hours a day, 7 days a week. In other words, TEEP shows you how much your operation could potentially produce if it runs non-stop.

How can OEE be improved?
There are multiple ways OEE can be improved, but the most popular way is through lean manufacturing.

What is lean manufacturing?
Lean manufacturing strives to reduce processes that add no value to the product being built. This means cutting out unnecessary stops and idle time. OEE was created as a way of improving lean manufacturing.

How can I use OEE to my advantage?
The best way to use OEE to your advantage is to fix the troublesome areas of the manufacturing process. To do this, you need to identify the trouble areas, determine how to fix them, and execute that plan. Once the problem is resolved, your OEE score will improve and so will your production.