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How Overall Equipment Effectiveness fits into manufacturing
Overall Equipment Effectiveness (OEE) is a series of metrics that is used to measure performance initiatives. Most often Overall Equipment Effectiveness is used in conjunction with Total Productive Maintenance. OEE is a powerful lean manufacturing tool, especially when combined with other tools using an integrated approach. This type of metric allows managers to determine the success of their Total Productive Maintenance processes. Overall Equipment Effectiveness is a simple, but clever calculation, which focuses on the individual items of process or manufacturing equipment, at a finite level, and allows their "effectiveness" to be measured individually or in groups (i.e. with other equipment items). The OEE calculation is always based on the ratio of the three key production parameters. These parameters are:availability, performance, and quality with time (e.g. planned shift times) being used as the baseline measurement. These factors are known as the availability rate, the performance rate, and the quality rate. Here is a brief overview of each-
The bottom lines is that if these areas can be addressed simultaneously then significant improvements, can be made throughout the production process, output can be increased, product variation can be expanded, and production cost reductions can be achieved using OEE.
It is believed that OEE is an excellent way of communicating the improvement opportunities to everyone, including:operators, maintenance technicians, sales representatives, engineers and managers. Employees take ownership in helping to improve the Overall Equipment Effectiveness rate, when they are properly trained. When a business first uses Overall Equipment Effectiveness metrics they can see the real efficiency of their equipment. They will then have the information, from which they can set improvement goals, for their operation. In turn, by improving the availability, performance, and quality rates, a manufacturer can then reduce their expenditure, on maintenance, and raw materials, as well as improve their manufacturing capability, and customer delivery times. This helps improve customer satisfaction and improve profitability. |
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