One of the simplest definitions of OEE is that OEE is a high standard for measuring or calculation of manufacturing productivity. Another plain definition of OEE is that OEE finds out the percentage of manufacturing time that is truly productive. Some simple meaning and definition of OEE is that, it is a tool with one of the quickest ROI i.e. return of investment, which helps in understanding the effect of productivity losses, & available improvement potential. OEE definition also describes OEE as maintenance KPI that measures the level of productivity of assets. So, likewise there are many definitions of OEE.
Important Factors of OEE –
There are 3 important factors that are important in OEE calculator. They are availability, performance, and quality. OEE, how to calculate is a very common questions that many individual or employees would have. The calculation of OEE or Overall Equipment Efficiency is very simple, i.e. OEE=AxPxQ. Alternatively, OEE how to calculate or calculator can be simpler like this – availability x performance x quality = OEE. Other ways OEE how to calculate or calculator is OEE = (Good Count × Ideal Cycle Time) / Planned Production Time. These are some of the basic ways of OEE calculation and some detailed ways also in which you can do OEE calculation.
100% Score in OEE- What it means.
One of the simple OEE calculationor formulas or calculator or is the calculator of OEE as the ratio of fully productive time to planned production time. When using the OEE formula or calculation if you get a score of 100% it means that, your production process is good. It would mean that in your production process you are manufacturing only good parts, that too as quickly as possible without any stop time. One of the ways where OEE formula helps is in finding out where there are hindrances in the production process. So, through OEE formula, you can find out the stop time, and also where the assets are underperforming while measuring overall asset effectiveness.
Reducing the Cost –
Through the OEE formula or calculator one can measure even the underlying losses and know where improvement is needed in the overall asset effectiveness. Another important thing, you will know about the OEE calculator or OEE calculator is that, it helps in reducing the cost and controlling the cost. The OEE calculation will overall help manufacturer identify the areas of losses and where there is less cost or no investment needed or cost control is needed. So, in this way OEE calculator helps the manufacturer in making a wise investment decision regarding cost, expenditure and control of cost during the production process.
OEE Index –
If you want to look for the OEE index, then you can get the OEE index of each companies or discrete manufacturer in their site or online. All you need to do is check online for OEE index of the manufacturing units. OEE index is updated every one hour; it can differ from country to country also. OEE index indicates where there is room for improvement, and it also tells the manufacturer that one cannot improve what you cannot measure. You can expect an overall equipment efficiency index ranging between 30% and 40%.
The OEE index has total 3 indicators, i.e. average speed indicator, average quality indicator, and average time indicator. So, this calculator is somewhat like this – OEE Overall equipment efficiency indicator = time indicator x speed indicator x quality indicator. These indicators can be calculated through no. of days and no. of hours. And, the OEE index will be the percentage during the calculations. Now, lets look at some of the Overall Equipment Efficiency or OEE benchmark and what is considered as a good score for OEE. The OEE benchmark of 100 % shows perfect production, in which the goods that are manufactured are perfect, as quick as possible and with no stop time.
World Class Benchmark of OEE –
There are also other benchmarks of OEE or overall asset effectiveness. An OEE benchmark of 85% is considered as, ‘A’ class all around the globe, which is for discrete manufacturer. For many industries, it is one of the most suitable long-term goals. You can also get overall asset effectiveness or OEE benchmark of 60%, which is quite fair, but at the same time it also shows that there is room for improvement. A benchmark of 40% is also there in OEE, which is low and is not uncommon for the industries that have just begun to trace and enhance their manufacturing performance.
The score of 40% of OEE Overall Equipment Efficiency a low score but there are many ways in which it can be improved through the straightforward measures. It can be improved by tracking the stop time reasons and also by addressing the sources of downtime and much more.