14/February/2019
Decoding Jargons – 4
Today I will talk about “OEE” or Overall Equipment Effectiveness
As we all understand, OEE is a powerful metric which takes into account various components of the manufacturing process such as Availability, Performance, and Quality, and provides a snapshot of the production effectiveness. However, some salient points are often missed by manufacturers and especially by #Industry40 solution providers.
- First and foremost, everybody within an organization needs to have a universal definition of OEE. Right? Only partially. Conceptually everyone must have same definition of OEE. However, method of calculation changes depending on type of machines and type of work done.
- OEE values are affected by how losses are categorized by the organization
- OEE is not the measure of absolute performance, but it is a good measure as to how effectively you are using your assets and where is the scope for improvement
- Rather than real-time OEE numbers, manufacturers should focus on OEE over a period of time and along with various other parameters
- OEE improvements don’t happen overnight, but need sustained Plan-Do-Check-Act (PDCA) cycles
- Looking forward to your comments, disagreements, and experiences of monitoring OEE
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