What is OEE and how to calculate it

In this article, we will talk about a maintenance indicator that contributes to a culture of continuous improvement in companies: the OEE.

 

What is OEE?

 

OEE stands for Overall Equipment Effectiveness and is an indicator that measures the effectiveness of equipment through the analysis of his performance (production capacity), quality (number of parts without defect), and availability of machinery. It also serves as a reference in assessing the condition of the equipment, that is, to verify if the asset is working properly or if some kind of maintenance is needed to bring it back to its initial efficiency.

 

How is the OEE calculated?

 

The purpose of this metric is very simple: to compare the performance of the equipment against its maximum productivity. If the OEE is low, it means that there is space for improvement, meaning, something is preventing the equipment from reaching the expected productivity. Below is the formula used to calculate it.

 

 

OEE = Availability * Performance * Quality

 

 

The closer the OEE is to 100%, the closer the equipment is to its maximum production capacity. Availability is calculated according to the time the equipment has been running and the planned working hours.

 

What are the advantages of OEE?

 

This maintenance indicator is able to indicate, as a percentage, the real effectiveness of any production process and is a key factor for companies to be able to identify any inefficiencies that may arise during this process. As a result, it reduces machine downtime, identifies the causes of downtime, and increases the product quality index. In addition, having access to reliable, real-time production information significantly increases the productivity of technicians and facilitates their work.

 

Why is OEE important?

 

Taking actions to improve OEE is almost always more cost-effective than the alternatives, especially in the long term, but often also applies in the short to medium term. Alternatives consist of adding a new work shift, increasing over time, buying new equipment, outsourcing production, or opening a new facility.

 

Currently, we can consider an OEE score of 85% as excellent. However, the reality is that many companies are at a much lower value, which gives scope for significant and very impactful improvements for companies.

 

Increase the availability of your company’s assets through preventive maintenance strategies. Find out how Valuekeep can help you simplify and optimize maintenance processes!

 

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