Why is OEE important?

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?

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.

10 things everybody should know about OEE
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Question number 2:

2. Why is OEE important?

OEE is important because it is part of improvement strategies

Calculating OEE is a crucial element of improvement strategies, including Total Productive Manufacturing (TPM) and Lean Manufacturing. By using OEE, it is revealed which machine or process needs to be improved at what point. Without OEE, many losses remain invisible. OEE, when correctly implemented, makes visible all losses on each measured machine.

TPM: A Japanese invention In 1971, the Japan Institute of Plant Maintenance, introduced the concept of Total Productive Maintenance. Eventually, TPM evolved into Total Productive Manufacturing. Around the end of the 1980s, TPM became also known in the Western world. At the end of the 1990s, the first books on OEE were published. They made OEE accessible and feasible for Western production areas. OEE was initially used in TPM to improve processes.

OEE is important because is measures machines, not people

When production goals are not met, it is sometimes tempting to blame the production team, the engineers or the management. One of the big advantages of using OEE is that it measures machines and processes, not people. The objective of the measurement is improvement. OEE provides a common language for production teams, operation managers and management.

For teams, it is crucial that everybody understands that the OEE measurement does not criticize people. Its sole purpose is to improve the machine and/or the process. Sharing information is important: It gives a team a common goal.

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