Manufacturing System Performance Measurement Using Overall Equipment Effectiveness (OEE)
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Manufacturing System Performance Measurement Using Overall Equipment Effectiveness (OEE)
By Reinaldo Ragil Rompas
In the modern industrial era, manufacturing companies must prioritize efficiency and productivity in order to remain competitive. The accurate and objective measurement of manufacturing system performance is critical for identifying improvement opportunities and increasing overall effectiveness. Overall Equipment Effectiveness (OEE) is a performance metric that measures the productivity of manufacturing equipment. Every factory’s primary focus is on increasing productivity in order to remain competitive in the market which increasingly competitive.
There are three metrics for measuring productivity and equipment effectiveness: availability, performance efficiency, and product quality level.
- Availability: The availability score compares the actual and planned production times. It considers downtime aspect, which includes any event that disrupts planned production for an extended period of time (typically a few minutes, or long enough to be classified as a trackable event).
- Performance: The performance score indicates equipment performing in comparison to its maximum potential. Performance factors impact speed loss, which occurs when a process runs slower than its maximum speed.
- Quality: This assesses the production rate of “good count” products that don’t require rework or defects. The quality factor accounts for quality loss by computing manufactured goods that don’t match quality requirements and goods that need to be reworked.
The result of these three metrics states in the percentage (%) form. When OEE score achieve 100%, it means the manufacturer produces only good parts at maximum speed without any stop time. That translates to 100% Availability (no Stop Time), 100% Performance (as quickly as possible), and 100% Quality (only good parts) in OEE terminology.
A perfect OEE score of 100% may be the ultimate goal but achieving it in reality is unrealistic. A score of less than 60% indicates that manufacturer is just getting started tracking OEE for evaluating production processes, whereas a score of 60% to 80% indicates that you have decent production processes with good potential for further optimization. Reaching 80% or higher places you among the top performers in terms of production efficiency. The way for improving overall equipment effectiveness (OEE) can be achieved through a variety of strategies including reducing unplanned downtime, using analysis tools, applying the OEE framework, incorporating continuous improvement methodologies such as Lean Six Sigma, identifying and addressing root causes, and implementing maintenance strategies such as corrective, preventive, and predictive maintenance.
Overall, OEE is a useful tool for manufacturers to gain a clear picture of the effectiveness of their manufacturing lines. Manufacturers can significantly improve productivity, cost savings, and overall business performance by leveraging this metric.
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