What is OEE for manufacturing and maintenance?

Overall equipment effectiveness (OEE) is perhaps the best estimation method you can use to enhance your manufacturing processes.

While discussing manufacturing at scale, minor upgrades can give a greater lift to your main process. That is particularly evident in the production business where shaving off a couple of minutes on one manufacturing process or diminishing the number of deformities by 1% can get a huge number of dollars consistently.

Keep reading this article to figure out how you can make the most out of OEE and amplify your production outcome.  Also, you’ll get complete clarity about OEE like basic definitions, and calculations, and even get practical examples.

So, let’s get started!

What does OEE mean or stand for?

OEE (Overall equipment effectiveness) is a term indicating an entire evaluation process used to assess how productively a manufacturer’s operation is being utilized. In short, overall equipment effectiveness assists you with noticing any issue in your tasks, recognizing what level of assembling time is truly productive, and fixing it while providing you with a standardized gauge for the following advancement. The objective for estimating your OEE is to improve consistently.

How does it work?

In simple words, OEE is the product of three measures availability, performance, and quality

OEE =Availability x Performance x Quality.

For instance, a machine having an availability of 90%, performing tasks at 95%, and having a 98% good item quality rate, will score an OEE of about 83.79%.

• Performance: The percentage of the real functional speed or the number of units created in a certain period, contrasted with the assigned or standard speed.
• Availability: The time percentage that a machine or other actual resource is relied upon to be accessible for production.
• Quality: The percentage of default-free parts or items delivered.

OEE Performance Example

Let’s take the case of the development of Coca-Cola bottles for instance. Theoretically, if our assembling unit can deliver a bottle each minute, and we want to create a complete number of 500 bottles for every shift, each shift must require 500 minutes.

Rather than that if it takes 600 mins to create the 500 bottles, we’d take the ideal manufacturing time of a single bottle (1 min) times the complete number of bottles we expected to deliver (500) and divide that value by the real runtime (600 min), winding up with 83.3%. performance overall.

OEE Availability Example

Let’s go back to the case of delivering Coca-Cola bottles. Assume that a shift at the Coca-Cola bottle manufacturing plant comprises 6 hours, in this duration, there’s like a half-hour meal break. After this meal break, the machine separates and doesn’t deliver one single bottle for 60 minutes.

Considering this situation, we figure out the expected run time by having 30 mins of a break from the complete shift time of 6 hours (360 minutes), which offers us a scheduled run time of 330 mins.

To figure out the real manufacturing time, we’ll take the expected and unexpected stop time, for this situation, the 1-hour breakdown, from the planned run time of 330 mins, which gives us a real manufacturing time of 270 mins.

At last, we can compute the availability by taking the real manufacturing time of 270 mins and partitioning that with the planned run time of 330 mins, which provides us a total availability of 81.8%.

OEE Quality Example

Yet again let’s utilize the development of Coca-Cola bottles for instance. As we discussed before, our assembling unit can theoretically create a single bottle each min, and we have a real creation time of 270 mins, this would provide us with a complete count of 270 bottles.

However, let’s assume that 20 of the Coca-Cola bottles didn’t meet the quality measures for any reason. For this situation, we would work out the great count by taking the 20 Coca-Cola bottles from the absolute count of 270 bottles, winding up with a fair count of 250 bottles.

At last, we can analyze the quality by performing the division of a great count of 250 bottles and the complete count of 270 bottles, providing us with a quality rate of about 92.6%.

What is OEE being used for in manufacturing?

Your OEE (overall equipment effectiveness) equation gives you a great indication of exactly how effective your manufacturing process is.

You can utilize it to quantify your resources and figure out which ones are failing to meet expectations. You can likewise compute OEE to interface one or each of the three of your key OEE factors in your production or assembling process- availability, quality, and performance.

When you figure out how to pinpoint your issue (that is the point responsible for the poor performance), you can research the hidden issues, tackle them, and work on the assembling or scheduled manufacturing time.

Is OEE a KPI for manufacturing?

Yes, OEE implying overall equipment effectiveness, is a KPI (key performance indicator) that compares your machine’s optimal performance to its actual performance. It is a measurable (i.e., utilizes numbers) method for figuring out how well your machines, processes, and workers are doing their tasks by estimating:

• Accessibility time/uptime (Availability)
• Keeping up with speed & consistency (Performance)
• Delivering not many deformities (Quality)

OEE utilizes useful information to observe the level of good manufacturing time on a resource. That implies that each piece of resource gets its own OEE score.

While scoring each machine might sound extreme, it is totally worth the hard work. OEE estimates the machine’s efficiency, yes. However, it likewise considers the people that operate them. You know as well as we do, that equipment isn’t always the issue. Processes and Staff can similarly be responsible for bringing down overall productivity.

What KPIs are being used in OEE for manufacturing?

Mainly, three KPIs are used to compute OEE. In short, OEE is a result of 3 assembling KPIs like:

• Availability: The proportion of time measure of when the machine was really productive to the time measure of when it was available to be productive. The Availability KPI is gotten from the granular components like Loading Time, Net Production Time, and Unscheduled Downtime.
• Performance: The proportion of the real speed with the planned speed. The Performance KPI is gotten from granular components like Net Production Time, Net Operating Time, and Speed Loss.
• Quality: The proportion of good items delivered to how many items are delivered in total. The Quality KPI is gotten from granular components like Net Operating Time, Value Operating Time, and Quality Loss.

OEE and its constituent KPIs are determined utilizing manufacturing or process information transformed in terms of time.

Why is OEE important?

You might have a critical potential limit in your processing plant that OEE optimization can successfully release. This will increment manufacturing and additionally make your tasks more productive and financially effective.

Moreover, taking more time to further improve OEE is quite often more financially effective than other options. This especially applies in the long run yet additionally applies in the short and medium-term as well. The choices incorporate adding another shift, expanding over time, buying new machines, reevaluating manufacturing, or opening another factory.

At present, an OEE score of 85% is considered to be excellent. Many assembling facilities fall well below this rate, making huge enhancements possible.

Benefits of OEE in Manufacturing

• Guarantees to utilize existing resources to their fullest limit, lessening the requirement for investment in different areas.
• Provides you with a superior oversight of the creation process, so you can comprehend where the real issues exist and how to focus on them.
• Conveys huge profit from investment whether you are expanding limit, driving efficiencies, introducing new items, and more.
• Assists you with keeping up with the competition in the market, especially in challenging enterprises like drug and clinical gadgets production.
• Further improved process quality will set aside your time and cash, as well as help to keep up with your position in the market while likewise staying away from the dangers and outcomes of item reviews.
• Diminishes machine maintenance and fix costs as you can set up legitimate plans and timetables.
• Works on the versatility of your production line.

Why do we need OEE for manufacturing?

The objective of OEE is to distinguish and decrease (or even cut off) the Six Big Losses of Total Production Management-the’s most well-known reasons for equipment-based efficiency misfortune in assembling:

• Availability: breakdowns & poor outcomes
• Availability: arrangement & changes.
• Performance: little stops
• Performance: less speed
• Quality: plan rejects
• Quality: product rejects

In short, this implies OEE can assist you with diminishing the expenses of rejections, downtimes, and deformities. Utilizing OEE, lean assembling is an actual objective.

Final Words

The OEE estimating system, basically, is a manufacturing’s best practice. It is utilized when makers and organizations try to acquire noteworthy bits of knowledge on the best way to drastically advance the production system. Constant OEE improvement can give your organization the advantage of important data that lets them know the degree of viability regarding each piece of equipment on the production line.

By using OEE measures, production organizations can follow and oversee the manufacturing process, diminish material waste, recognize mishaps, and evaluate progression.