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The OEE KPI and what it means to your business

Published: · Last updated: · 1 min reading time

The OEE is an abbreviation for the key figure in the production and stands for “Overall Equipment Effectiveness.” In the manufacturing environment, OEE is one of the critical indicators of all, as it can be used to derive statements about the efficiency of machines. OEE is calculated from the actual plant availability, performance, and quality losses concerning the maximum expected performance. This tells us how available an asset is, at what speed it is operating, and how many products are outside the quality specification.

After considering the various factors, the result is expressed as a percentage. This percentage can be viewed as a snapshot of the current production efficiency for a machine, line, or cell. For example, a low OEE value is usually considered to be slightly negative and a high OEE value as an indicator of high overall equipment effectiveness.

What are the benefits of real-time OEE measurement?

Real-time OEE measurement enables employees to take corrective action quickly. Detailed historical data on production performance and asset utilization allow root cause analysis of capacity losses to identify areas for improvement because your production process is only as effective as the least efficient equipment on the line. This limits profitability, schedule adherence, and uptime of your equipment.

To optimize overall line effectiveness in the long term, you need a “CIP culture” within the organization, in which lean managers, workers, and production managers work closely together to derive the right measures – and initiate a continuous improvement process.

About the author

With a global mindset and entrepreneurial spirit, Sandy Abraham works with and across the organization to execute on integrated marketing programs and to initiate compelling new operational models. Sandy loves pugs, travel, automotive engineering, the aerospace industry, and smart design.

Sandy Abraham

Marketing & Brand Management