Improved quality - By measuring and tracking OEE, it is easier to identify and address quality issues in the production process, resulting in improved product quality.Increased productivity - OEE helps identify the root cause of production inefficiencies and allows to target improvements, resulting in increased productivity.The most essential advantages of calculating your OEE include the following: Enhancing equipment and processes - Analyze production data, find ways to optimize manufacturing processes, and enhance tools to reduce reasons for downtime.Īs with any data, there are always many benefits to having a specific analysis of your business.Monitor product quality and identify areas for improvement. Improving quality - Implement quality control measures to reduce defects.Train your operators on best practices and implement regular maintenance to ensure that machines operate at maximum efficiency.

Increasing performance - Optimize production processes to reduce cycle times and eliminate bottlenecks.Have spare parts and maintenance personnel available, and schedule maintenance during periods of low demand. Improving availability - Ensure that equipment is well-maintained and breakdowns are minimized.But, how do you start actually optimizing your manufacturing? Here’s how to improve OEE in your business: The all-around average OEE in manufacturing seems to be 60%, with many companies starting their OEE tracking at around 40% and working their way up from there. But, 85% is considered the goal to work towards. On the other hand, a low OEE value indicates problems with the equipment, processes, or workflow that must be addressed to improve efficiency and productivity.Īn ideal OEE value in a manufacturing plant is 100%, and achieving that would be ace. The goal of measuring OEE is to identify areas where production processes and equipment can be improved to increase productivity and reduce waste.Ī high OEE value indicates that the equipment is being used effectively, and there is little waste or downtime in manufacturing, leading to a higher output of quality products. OEE = Availability x Performance x QualityĮach factor is represented as a percentage, with 100% representing perfect performance. The calculation for OEE is relatively easy if you follow the formula: Manufacturers can take targeted actions to improve efficiency and optimize production by understanding the factors driving low OEE. Finally, if the quality is low, this may indicate issues with the raw materials or the production process itself. If performance is low, it may suggest bottlenecks in the production process that need to be addressed. Quality - Refers to the percentage of products that meet the required quality standards.īreaking down efficiency into these three components allows manufacturers to identify specific areas for improvement.įor example, low availability may indicate frequent breakdowns with the equipment, which ultimately means emotional breakdowns for the team.Performance - Measures how well the equipment or process is performing compared to its maximum potential output.Availability - Refers to the amount of time that the equipment or process is available for use.OEE takes into account three factors that contribute to overall productivity: The goal is to create value for the customer while minimizing manufacturing waste, and OEE is used as a tool to help achieve this goal. In contrast, OEE in lean manufacturing strongly emphasizes quality and efficiency. In traditional manufacturing, the focus is often on maximizing the output of equipment and processes without necessarily considering the quality or efficiency of the final result. It measures the effectiveness of equipment or manufacturing processes while producing quality products on time. Overall equipment effectiveness (OEE) is a performance metric in manufacturing to calculate the productivity and efficiency of a production process.

Manufacturing efficiency