Overall Equipment Effectiveness - OEE

Overall equipment effectiveness (OEE) is a performance metric used availability/equipment up-time, performance efficiency and quality management of the output products. The metric is considered an overall metric of plant efficiency as well as plant performance. It is a good measure to compare and benchmark different plants, and evaluate the progress of process improvement/kaizen or lean manufacturing initiatives .

In order to calculate OEE we must first calculate the three performance measures that make up the ratio, as previously named. These measures are calculated as follows:

-Equipment/Plant Availability: operating time/ net available time.

-First time through (FTT)/quality: (total parts run-total defects) / total parts run.

-Performance efficiency: (total parts run x ideal cycle time) / operating time.

OEE= Plant availability x FTT x Performance Efficiency