About Overall Equipment Efficiency & Its Benefits

OEE is also known as Overall Equipment Efficiency. In simple words, OEE is the measure of a manufacturing operation or machines that is utilized i.e. facilities, material and time when compared to its full capacity, during the periods or time when it is schedule to operate. Manufacturing time in percentage is identified through the OEE, which is truly productive. If you get an OEE of 100% it means that the parts of the good are produced with 100% quality that too at the maximum speed of 100% in performance and that without any kind of interruption i.e. 100% availability. Measuring the OEE percentage for manufacturing is one of the best practices. By calculating the OEE and the fundamental losses, pivotal understanding can be gained on enhancing the manufacturing process in a systematic way. One of the best metric for identifying the losses is OEE, with standard progress and enhancing the productivity of the equipment of manufacturing by removing the waste.

About TEEP –

Then, there is also a TEEP, which is closely connected with measures the OEE against the day’s hours rather than against planned operating hours. TEEP is also known as Total effective equipment performance. If you get a TEEP of 100%, it would mean that the work has run or operated with an OEE of 100% and for 24 hours including 365 days in a year. Moreover, that the loading is 100%. Seiichi Nakajima was the first person to coin the word OEE. OEE is based on the way of thinking of Harrington Emerson. OEE is regarding the labor efficaciousness. In the general form of OEE the OEE permits assessment between differing industries and manufacturing units. But the things, is that there is no full measure related to the same and OEE is best used to identify scope for process performance improvement. Or let’s say in other words how to get improvement.

KPI in OEE –

One of the measurements in OEE is used as a KPI i.e. key performance indicator in combination with lean manufacturing efforts, which will show or indicate success. One of the reasons why OEE also known as overall equipment effectiveness is so popular and well-known because in the manufacturing operation metric , it gives out perfect data on which the manufacturer can work for productive improvement.  In order to measure the effectiveness of a manufacturing process, one of the best practice metric that can be used is OEE.  OEE calculation is done in three ways.

Product Factors of OEE-

So the three ways or the three product factors of OEE calculation is availability, quality, performance. One of thing that you will know about OEE, Overall Equipment Efficiency tool is that it helps manufacturers to know planned production time that is fully fruitful.  If you get a score of 100% when using the OEE tool, it would mean that the production of the goods is perfect in time available and in good quality.  The other ways in which you can use OEE is to track the progress and performance i.e. needed for removing waste or losses from a particular machinery.

Benefits of OEE –

There are several benefits of OEE.  One of the major benefits of OEE is that, it helps the manufacturer to know where improvement is needed in the manufacturing process.  The only way in which people can realize the value of OEE is through the use of OEE metrics.  Prior to taking any steps to enhance the production process, it is very important for people to know about the efficiency and inefficiency of the production process.  With the assistance of the OEE metric the manufacturer can count the efficiency in simple number at the same time unmasking the real effectiveness of production process.

OEE Helps in Tackling Losses –

One of the things, which the manufacturers should know, is that if there are limitations on the performance of manufacturing operation then it can be like a hindrance in the process of manufacturing.  Apart from that, this can encourage the workers in the manufacturing unit to continuously work towards the improvement in the projects.  Loses can be defined in several ways in the manufacturing unit.  One of the things that you will notice that OEE helps in tackling with more than 5+ kinds of loses.  The different kind of loses, that the OEE tackles are – breakdown and failure, set-up and adjustment, small stops, reduce speed, start-up rejects, and production rejects.

Conclusion –

So in simple words OEE is very helpful for the business manufacturer and organizations to know about the percentage of productivity.  OEE also helps to identify the down time.  In addition, OEE is one such tool that helps the business to stay competitive with each other.

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