OEE, which stands for Overall Equipment Effectiveness, calculates the proportion of scheduled production time that is genuinely efficient.
It’s a percentage that reflects the amount of manufacturing time that is productive and free from defects, slowdowns, or stoppages.
Recognised as the gold standard in gauging equipment efficiency, this metric is often referred to as world-class OEE or OEE world-class.
A high OEE score means that a machine is running nearly perfectly, with little to no waste of time or materials.
The Three Pillars of OEE in Manufacturing
Within manufacturing, OEE serves as the benchmark for comparing the actual productive time against the planned production period.
OEE is determined based on three crucial elements: Availability, Performance, and Quality.
- Availability accounts for any losses in availability, encompassing events that halt production significantly. This includes both scheduled pauses, like changeovers, and unforeseen stoppages, such as equipment malfunctions, calculating the ratio of actual production time to the planned period.
- Performance considers speed losses and any factors impeding a process from reaching its maximum speed. This could stem from material shortages, equipment breakdowns, or minor pauses, often defined as stoppages lasting less than five minutes.
- Quality addresses losses related to quality, such as any produced items that fail to meet the set quality benchmarks.
Combining these three factors – Availability, Performance, and Quality – gives an overall picture of a machine or production lines effectiveness and each factor contributes to the final OEE percentage.
Interested in enhancing your equipment’s effectiveness but unsure where to start? Contact POET Systems now to learn more about how our solutions can help you better understand, measure, and improve your OEE.
What Does a World-Class OEE Score Entail?
OEE, or Overall Equipment Effectiveness, is measured as a percentage. A perfect score of 100% means that the equipment is always running at full speed, with no stoppages, and producing only good, non-defective products.
However, getting a score of 85%, which is considered excellent, or “world-class” is the standard that is considered to be ‘gold’.
For many manufacturing companies, OEE scores are around 60%, indicating that there is a lot of potential to make processes better. If you are scoring an OEE of 40% or lower, don’t fret, you are not alone. You can, however, make a lot more profit than you are right now.
Achieving an 85% OEE is tough because it requires a high score in three key areas: the equipment’s availability, its performance speed, and the quality of the goods produced.
That’s why aiming for a perfect or world-class score right off the bat might not be the best strategy. Instead, focusing on steadily improving these areas can be more practical and rewarding.
Is World-Class OEE Realistic?
Aiming for a world-class Overall Equipment Effectiveness (OEE) rating, which is around 85%, is a bold goal for manufacturing companies.
It represents nearly ideal operations with machines continuously producing defect-free products at full capacity. While achieving this level of performance is possible, it is more feasible in certain industries, such as food manufacturing, due to simpler production processes and less complex machinery.
In contrast, manufacturers in sectors like metal, discrete, or plastics often find it harder to reach these lofty OEE numbers because of the intricate and specialised nature of their equipment and processes.
For these companies, consistent OEE scores of 70% might be a more attainable target, allowing for steady, realistic improvement rather than striving for perfection that might be out of reach.
Setting a Feasible OEE Target
Identifying a realistic Overall Equipment Effectiveness (OEE) target is essential to maintain morale and drive continuous improvement in manufacturing.
The process involves understanding industry benchmarks, evaluating current performance, and focusing on incremental improvements.
- Industry Benchmarks: Begin by researching the typical OEE scores within your industry to set a reachable target, acknowledging the differences in production processes across sectors.
- Current Performance Evaluation: Assess your operation’s current OEE, focusing on its components: availability, performance, and quality. This assessment helps pinpoint areas for enhancement and forms the basis for a realistic goal.
- Incremental Goals: Rather than aiming for an elusive “world-class” OEE score, establish small, achievable goals. This approach keeps the team motivated and emphasises continuous progress.
- Team Morale: Setting attainable targets ensures that employee morale remains high. Involving the team in the goal-setting process can also foster a sense of ownership and commitment.
- Continuous Improvement Focus: Treat the OEE target as a milestone in the ongoing journey towards operational excellence. Prioritise long-term, continuous enhancement over hitting an arbitrary benchmark.
Enhancing Your OEE with POET Systems
To uplift your OEE, the initial step involves precise measurement. POET provides software capabilities for accurate OEE valuation, supporting root cause analysis and continuous improvement strategies.
Improving OEE entails several measures, from reducing downtime through optimised maintenance schedules to employing real-time machine condition monitoring for actionable insights.
Are you ready to unlock the full potential of your manufacturing operations? Contact POET Systems today to explore how we can transform your approach to OEE.
Remember, OEE is not just a figure to achieve but a tool for ongoing improvement.