In order to manage short lead times of order fulfillment, meet cost targets, handle the pressure on budgets, and the demands to quality, the right priorities must be set. But where to start and what to do?
Making decisions based on gut feeling is not the best option. It is much better to take action based on facts and data. How can you motivate the people who make the product, who maintain the equipment, and who plan and manage the value-creating process, to behave in a way that leads to all the above? OEE can help manufacturers to collect data that can be processed into valuable information.
This blog series is about the fundamentals of OEE. We will answer the 10 most important questions around the subject of OEE and give an insight into the possibilities it offers.
We will start to answer the first question: What is OEE?
1. The definition of OEE
OEE stands for Overall Equipment Effectiveness or Overall Equipment Efficiency. It is a measurement tool that is used to reveal production losses (or better said: improvement opportunities) of a machine. When these losses are identified, they can be solved by using improvement strategies like TPM, Six Sigma, Lean Manufacturing, or Monozukuri.
With OEE, you and your teammates can discover where (and for what issue) a machine needs attention. That way, it will become clear what incidents do not add any value – or, even worse, subtract value – and need to be resolved.
For who is OEE relevant?
OEE is a methodology for operators, mechanics, team leaders, quality staff, shop floor, and production managers, and continuous improvement managers. The OEE measurement gives them the possibility to evoke and steer a strong productivity improvement.
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