A Great Start To Pull Your True Potential
In the production unit or manufacturing, we often hear the term Overall Equipment Effectiveness (OEE) and its score.
Primarily, OEE is a fundamental practice in lean manufacturing, production unit, workshop, or individual station for visualizing and analysing the performance of a production plant.
Beyond being an indicator of performance, more importantly, OEE is an improvement tool that allows us to eliminate bottlenecks, issues, and sources of losses.
OEE is a performance driver, and the calculation of OEE reveals how effectively we are working and how much we can pull our potential.
Practically, OEE = Availability × Performance × Quality
#Availability ?is no. of times an asset is available for production.
#Performance ?is the actual running speed of equipment against its operating designed speed.
#Quality ?is the no. of products produced that satisfy the customer's needs.
Most manufacturing units' OEE scores are closer to 40-60%. Unlikely, some companies achieved 85%. But it doesn't mean 85% is a limit. It is possible to desire above 85%.
Setting OEE targets means maximizing machine utilization. Unknowingly, operating below our true potential is not a long-run strategy in this fast-paced world.
Improving three metrics of OEE leads to a more efficient and productive manufacturing operation Which directly impacts the company's bottom line.
Hence, getting availability right, getting cycle times right, understanding quality are the key targets for any progressive manufacturing unit for OEE improvement.