If you have a manufacturing facility where different pieces of equipment, such as generators and conveyors, are used, there is one question to always ask at the end of the day, “Are you hitting the maximum potential?” One way of answering this question is calculating the overall equipment efficiency (OEE). Keep reading as we dig deeper to determine what OEE is and the best method for calculating it.

What is OEE?

OEE (shortening for overall equipment effectiveness) is considered one of the best methods of assessing the productivity of manufacturing facilities. The method is used to establish the percentage of manufacturing time that is, in reality, productive.

If your facility gets a 100% OEE score, it implies that you are manufacturing good parts rapidly. In OEE terms, it means you have hit 100% quality, 100% performance and 100% availability. Such a scenario is the desire for most companies, but it is never easy to achieve for many manufacturers.

Measuring OEE is considered one of the best practices because it provides insights into how to improve the productivity of a manufacturing facility. It also helps with benchmarking the process of improving the productivity of manufacturing machinery, from motors to material handling equipment.

How is OEE Different from Efficiency

Before looking at how to calculate OEE, we need to differentiate it with the term “efficiency.” Indeed, the two terms are not interchangeable. Equipment effectiveness is the relationship between what you produce within a specific period with a machine versus the maximum potential of the machine. So, if you have a machine, say a pump, that can pump 1,000 liters, but only manages 800 liters, it is only 80% effective.

However, this does not mean that the pump is 80% efficient. OEE does not include other factors that come into play when running the equipment. Instead, these additional attributes, such as materials, energy, and the use of personal protective equipment, are important when calculating the efficiency of a machine.

How Do You Calculate OEE?

The best method of calculating OEE is by tracking three key metrics; Availability, Quality, and Performance. Let’s look at each of them closely:

• Availability: This metric means the time that the respective equipment, be it a boiler or hydraulic machine, among others, is available compared to planned production time. Make sure to include both the planned and unplanned downtime when determining the availability.
• Performance: This metric looks at everything that might pull down the production process, such as slow production speed, short stops, and machine breakdown. If a machine scores 100%, it implies that it is running as fast as possible.
• Quality: This metric allows for defects that need to be reworked later. Simply put, it checks the products that do not meet the set standards and, therefore, cannot be released into the market without additional processing.

As a manufacturer, your focus should be directed at trying to hit the highest OEE rates. You can improve OEE in a number of ways, including proper equipment maintenance and automation. Capacity improvement to build the skills of your staff would also come in handy to help improve OEE.