Overall Equipment Effectiveness (OEE): An Overview

OEE or Overall Equipment Effectiveness is an efficient manufacturing business performance management tool that evaluates the effectiveness of a manufacturing operation. This solution metric is ideal for all types of the manufacturing process that actually measures the gap between the actual performance and the potential performance of a manufacturing unit. OEE is measured in percentage and reflects how well available resources have been qualitatively utilised. Measuring OEE is the best practice of manufacturing businesses that helps them gain insights on improving their manufacturing process. Manufacturing businesses looking for efficient OEE solutions can consult Manufapp, where you can continuously monitor OEE score.

An Insight into Three Pillars of OEE

OEE is a calculation measuring the percentage of productive manufacturing time. It is used as a benchmark to compare production to industry standards, in-house equipment, or amongst shifts working on the same equipment. OEE comprises three vital metrics quality, performance, and availability which account for its overall score.

Availability – Availability helps to find out the time that got wasted due to unplanned stoppages that may be caused due to failure or breakdown of equipment, or operators taking too much time to set the machine.

Performance – Measuring the Production over a period of time helps to determine the rate of output. Businesses may fail to reach 100% production due to reasons like machines not performing at the expected levels, or businesses may have overestimated their production efficiency, or there may be a lot of idle time in terms of machine availability. 

Quality – Quality helps business know how well the production systems and processes are. The measuring quality enables  businesses identify issues like manufacturing equipment not of standard quality, machines not configured correctly, certain areas of the process that may be holding production, or defects that may be caused by operator mistakes. All these issues can be tracked by periodically checking on product quality. 

Now the OEE Score, which is nothing but a product of Availability, Performance and Quality (A X P X Q) enables businesses measure their production performance.

Have Real-Time Visibility into your Production Floor with Manufapp Effective OEE Solution

Manufacturing businesses that score high all three areas performance, quality, and availability mean that their equipment performance has been carefully optimized, their machines are well maintained, and their staffs are well trained. This is a good sign because it indicates that factories are working at optimal levels and have minimal interruptions and downtime. However, if OEE reports score lower than their benchmarked score, then it indicates that manufacturers need to take action.  So we see OEE metric is extremely popular in several industries to improve upon their production line and ensure that machinery is providing the best output.

OEE Benefits

Manufapp OEE solution is used by the leading and progressive manufacturing companies to increase capacity, reduce costs, and enforce improvement. Our OEE solution gives manufacturing businesses complete control by highlighting performance issues in real-time. It allows them to consistently improve by discovering the inefficiencies persist in the manufacturing process. The solution enables businesses to take apt actions to address issues with ideal remedy. With the use of our OEE solution manufacturing businesses will achieve a transformative change in their productivity and organisational culture fulfilling their smart factory objectives. Right from a small manufacturer with a single factory to a globally recognized manufacturing business, OEE solutions provides many tangible benefits to businesses:

  • Businesses can track problematic areas that require improvement
  • Businesses can ensure maximum production efficiency
  • Existing manufacturing processes can be analyzed with Key Performance Indicators
  • Collect and analyze production data for making informed decisions
  • OEE data along with grouped metrics can be visualized to improve production 
  • OEE solution provides real-time alerts to identify production issues before they happen
  • Have deep insights for measuring manufacturing productivity

OEE Use across Manufacturing Businesses

OEE solution is used by manufacturers all around the world to take an objective look at their processes to gain valuable insight on how to measure productivity, increase efficiency, and increase production. This sophisticated tool analyzes the manufacturing equipment from a single interface and provides a competitive edge over others through continuous improvement. Spotting manufacturing issues like equipment malfunctions, production losses, and slow cycles can be spotted before they arise with the help of advanced analytics on the collected data. Spotting these issues allow manufacturers to maintain an ideal cycle time to reach important KPIs.

OEE Functionality

  • OEE is the optimum standard as far as measuring the efficiency of the equipment is concerned and it allows them to measure the manufacturing time that is effectively used to provide a score based on factors like quality, performance, and availability. The range of the score varies from 0% to 100%. 
  • The analysis of loss will collect data for the businesses so that they can analyze OEE metrics to monitor performance loss. The data is collected for a particular timeframe when a business sets a benchmark for performance. Businesses grab every available opportunity to improve by having the data to improve OEE
  • A high OEE score indicates that the equipment effectiveness of the manufacturer is top-class and they have streamlined processes with no or little downtime or waste. A perfect score is the aim of every manufacturing business because this allows them to improve product quality and line efficiency.
  • Using effective OEE solutions, businesses can view real-time data and also review the historical trends of their overall equipment effectiveness on a desktop or mobile device. This also helps in reducing future labour costs and availability loss because businesses will not need to further reduce downtime for maintenance of the machine.
  • OEE solution helps to accurately track several extremely valuable metrics with the aim to allow businesses to see actionable insights that may improve yield and run time that in turn will improve production.

The Significance of our OEE Solution in your Manufacturing Strategy

Manufacturing businesses can use our OEE solution to enhance their manufacturing operation.

Firstly it helps them improve profit. Businesses will be able to map actual data against your expectations to determine the current effectiveness of their equipment, identify issues, and make strategies to enhance their manufacturing processes. Businesses can find and eliminate the losses that pop up in production and our OEE solution enable them to find weak areas responsible for losses that should be optimized. 

Secondly, the ideal OEE score will be a great motivator, as both floor employees and management look for a reason to celebrate, especially if the improvements make a great impact on productivity because employee efficiency is essential. 

Our OEE solutions are meant for the manufacturing sector, as OEE is an amazing tool for measuring production effectiveness and discovering potential areas for improvement. A good OEE score is industry-wide recognizable.