OEE1 vs OEE2 – What’s the difference?

A quick introduction to OEE 1 and 2

In this article, we will explore the differences between OEE1 and OEE2. OEE, or Overall Equipment Effectiveness, is a measure of the efficiency of a manufacturing process. It is calculated by multiplying the availability, performance, and quality of a manufacturing process.

While the calculation of OEE can vary depending on the specific approach used, it is a valuable tool for manufacturers to assess the effectiveness of their operations. In this article, we will compare OEE1 and OEE2, two different approaches to calculating OEE, and discuss the advantages and disadvantages of each.

What does the term OEE mean?

OEE is a measure of manufacturing productivity. It stands for Overall Equipment Effectiveness and is a way of quantifying how well a manufacturing process is performing. OEE is calculated by multiplying three factors together: availability, performance, and quality. The resulting number is a percentage that indicates how efficiently a manufacturing process is operating. A high OEE score indicates that a process is running smoothly and efficiently, while a low score indicates that there are areas for improvement.

How do you calculate OEE?

To calculate OEE, you need to first determine the availability, performance, and quality of the manufacturing process. Here’s the formula:

OEE = Availability * Performance * Quality

Availability is the percentage of time that the equipment is available to produce product. This is calculated by dividing the actual run time by the planned production time.

Performance is the speed at which the equipment is operating compared to its designed speed. This is calculated by dividing the actual production rate by the designed production rate.

Quality is the percentage of good products produced by the equipment. This is calculated by dividing the number of good units produced by the total number of units produced.

Once you have determined the values for availability, performance, and quality, you can multiply them together to calculate the OEE for the manufacturing process. Here’s an example:

Suppose a manufacturing process has an availability of 80%, a performance of 90%, and a quality of 95%. The OEE for this process would be calculated as follows:

OEE = 0.8 * 0.9 * 0.95 = 0.702

In this case, the OEE is 70.2%, which indicates that the manufacturing process is operating efficiently.

What’s the difference between OEE1 and OEE2?

OEE1 and 2 are almost the same, but different from each other in the calculation. Or rather what the inputs are into the calculation. OEE1 is based on the maximum available time, so all available hours in a day, meaning all 24 hours.

OEE2 is based on the planned production time. So in the 24 hours, you might have 2 separate shifts; a day and a night shift. The two shifts span 8 hours, each shift has 30 minutes break time, so you’re 100% availability will be calculated from 15 hours total.

To specify OEE1 and OEE2

• OEE1 is based on the total available time, 24 hours, 7 days a week, and 365 days a year.
• OEE2 is based on the planned production time or amount of actual working hours.

When to use OEE1

OEE1 is used when you need to find the overall capacity, and if you need to improve or maximize the capacity. You often use OEE1 to see the potential for improvement as it gives an easy overview of the overall production capacity of the factory or machine.

When not to use OEE1

OEE1 is not good for seeing the actual potential or making improvements for individual machines and/or shifts. When using OEE1 you have many more variables to take into account when trying to understand the number. This is because you’re looking at a broader perspective, and the number will even be affected by vacations, holidays, etc.

When to use OEE2

OEE2 is good when you want to make actual improvements and lay strategies for future improvements. It calculates based on actual production time and filters out all irrelevant data that doesn’t affect the actual efficiency of your machine.

If you reach a point where you are actually getting the OEE2 number for your machine, you’re already far into a good strategy and foundation for improving efficiency.

To get the OEE2 number you need to know the following:

• How many shifts do I have and how many hours are they working?
• How many planned stops do I have? Like breaks, maintenance, setups, etc.
• How do I identify each stop, and what is planned and unplanned?
• How much am I producing per hour when the machine is running? How much should I be able to produce each hour when the machine is running?
• How much should I produce each hour based on each order/item number?
• How much do I scrap of what I produce?

This is of course hard to get, especially if you have different types of machines and no way of getting this type of data yourself. Luckily we are experts at this, feel free to reach out if you need any assistance.

When not to use OEE2

OEE2 is in general harder to achieve because you need the actual planned production time as your base for calculating the availability. This means you need a system to handle working hours and planned production time, which is not something you can easily do in a spreadsheet.

So if you need a quick KPI for your production, OEE2 is not the way to go. It might be the best, most precise, and most useful for actually getting performance improvements. But it’s also the hardest to achieve.

Which is better, OEE1 or OEE2?

As similar as the two terms are, they have two different goals. If you want a quick and good overview of your production you need OEE1. If you need to actually start improving efficiency and performance, go for OEE2.

Overall I’d say OEE2 is better. It’s more realistic and you sort out all irrelevant stuff that doesn’t have any direct impact on your production.