What is World-Class OEE?
Adrian Pask
Manufacturing Digital Transformation Strategist | Consumer Goods Digital Manufacturing Leader
World-class OEE continues to be a hot topic. We are regularly asked questions such as; What is world-class OEE? Where did it come from? Should it be my target?
What is World-Class OEE?
In this case a picture is worth a thousand words (well - maybe a hundred).
Where Did These Numbers Come From?
The short answer - Japan. But that is probably not the answer you were looking for. So let's dig deeper!
World-class OEE numbers can be traced to Japan - in 1984. At that time, Seichii Nakajima, a consultant with the Japanese Institute of Plant Maintenance, authored TPM Nyumon (Introduction to TPM), in which he explained how to deploy TPM, OEE, and the Six Big Losses. Even today this book is a great read!
Seiichi Nakajima cited the four “world-class” numbers shown in the picture above. He defined them, based on his practical experience, as minimums for which companies should strive. He also noted that all the companies winning the Distinguished Plant Prize (awarded annually to Japanese plants that had successfully implemented TPM), had OEE scores in excess of 85%.
Should 85% OEE Be My Target?
Probably not. At least for now. Keep in mind that these numbers have roots in a particular place (Japan), at a particular time (1970s), and in a particular industry (automotive). So really, how relevant are they to you?
The most important thing about setting an OEE target is don’t fixate on the absolute value of the number. Fixate on your ability to improve that number.
Either set an OEE target that will drive solid, incremental improvement for your process. Or set targets to reduce one of the Six Big Losses to OEE. Targets should be be stretching and truly achievable, preferably within three or four months.
Learn more about World-Class OEE at OEE.com
Senior Consultant at Quest Worldwide
8 年50% OEE is spectacular. Higher than that moves you to world class
Founder of 4th Peak. An experienced Supply Chain & Logistics Director with 10 years interim experience following a 15 year permanent career with Coca-Cola, RHM and Amazon. 0pen to consultancy and interim opportunities
8 年As always a great article Adrian Pask. You know I've worked in "world class" environments where the OEE was 65% at best. The important thing is to calculate and accept the number and then as you say work out how you want to improve. To embed the concepts that improvement is possible and necessary in an organisation throws up all sorts of cultural challenges but once a team see the number go up and taste success there is no stopping them. Explanation of the number and how it is calculated is key and the provision of the tools to achieve improvement critical.
Founder & CEO, 4D Lean & 7 Generations I Consulting Organizations on HR Strategy & Future of Business I Human Potential Expert ? Keynote Speaker ??
8 年Even 100% can bring you in danger if you don't invest ...