Overall Equipment Effectiveness (OEE)

05 April 2023 0 views

In an average work environment, after using a device or machine for a long period of time, we find that it tends to slow down the more we use it. At first it may not be noticeable, but as time passes, at some point, you will no longer be able to ignore the instances when your equipment ‘lags’ or ‘freezes’. In the long term, not knowing your equipment’s exact effectiveness can be risky to ignore, as your equipment can end up depreciating prematurely or even worse, breakdown entirely, causing unplanned downtime. 

With what’s called an Overall Equipment Effectiveness (OEE) Standard, it becomes clear how effective your equipment is, whether its rate of productivity is at an appropriate level or if it needs immediate servicing. In this article we’ll observe how OEE is measured and why it’s always appropriate to have OEE in your own respective industries.

Overall Equipment Effectiveness Solution - Real-time Machine Availability  Management for Maximizing Operational Excellence - Advantech

Definition and Explanation of Overall Equipment Effectiveness (OEE)

According to (2021), OEE (Overall Equipment Effectiveness) is the best standard created for measuring equipment productivity in various industries such as manufacturing. It identifies the amount of time that the equipment is completely/fully productive. When measured through a score between 0% to 100%, an OEE score of 100% means you are manufacturing at the highest rate of productivity, where the rate of task completion is at its fastest, with no single Stop Time. The three factors that rate an equipment’s OEE is generally seen through its Quality, Performance, and Time, which are all graded in percentages between 0-100. 

An OEE score of 100% means you are manufacturing only Good Parts, as fast as possible, with no Downtime. Generally, OEE scores differ depending on the size of your company, but the best case for a MNC’s around 85% in terms of total OEE. The definition of each factor is seen below: 

  • Availability - It takes into account the amount of Unplanned and Planned Stops the equipment faces. An Availability score of 100% means the process is always running during Planned Production Time, a score lower would mean that the equipment is subjected to more unplanned downtimes (breakdowns).

  • Performance - It takes into account the amount of Slow Cycles and Small Stops that the equipment faces. A Performance score of 100% means when the process is running it is running as fast as possible. A score lower would mean there are times where the equipment lags or slows down its rate of productivity.

  • Quality - It takes into account the Defects (including parts that need Rework) that the equipment produces. A Quality score of 100% means there are no Defects (only Good Parts are being produced). A score lower would mean there are times where the equipment fails to properly complete its task (ex. Misaligned cuts on a good).

By having a standard to measure your equipment’s productivity, it allows the management to schedule preventive maintenance. It also gives an analytical inference on the upcoming productivity rates, allowing for upper level management to make short term decisions or other forms of planning for the near future. PT. Duta Kalingga Pratama is currently in the process of creating our own OEE Management System. Stay Tuned for more updates!

References (2021). Understanding OEE in Lean Manufacturing | Lean Production. [online] Available at:

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