By now, most manufacturing companies are familiar with Overall Equipment Effectiveness (OEE) concepts and apply them to their own operations to understand the performance of their operating assets (lines and machines).
To review, OEE is a metric that expresses the operational effectiveness of an asset over a time period. It is expressed as a percentage (from 0% to 100%) and is the result of this simple formula:
Availability x Efficiency x Quality
This metric is popular because it is an easily understood concept; it provides quick insight about the performance of an asset; it is relatively easy to gather the underlying data; and it can serve as a starting point for a “deeper dive” investigation into an asset’s performance problem.
Given the apparent simplicity of the concept, you’d think that all manufacturers would be able to implement Overall Equipement Effectiveness programs easily and uniformly. In reality, this is not the case because of differences in how manufacturers interpret the meaning of the three effectiveness factors and how they measure them.
The fact that companies implement Overall Equipment Effectiveness programs differently is not necessarily a problem; it’s simply something a manufacturer should be aware of when it plans and executes an implementation, and especially, as it attempts to benchmark its own operations vs. its industry peers.
Let’s take a look at a few considerations when planning what to measure in an implementation.
These are just a few of the implementation issues to consider when planning an Overall Equipment Effectiveness program. Be aware of how to best measure the factors for your company. Anticipate how they affect your comparisons to industry benchmarks and how they’ll be used for strategic decision making going forward.
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