What is Overall Equipment
Effectiveness OEE ?
The primary goal of lean
manufacturing is to reduce inventory level and eliminate the
bottom neck of the production system. The reduced inventory
level will exposed the underwater rocks (bottom necks) in
stages, the company shall allocate right resources to
eliminate these bottom necks to achieve ideal zero inventory
level.
OEE is a measure
of loss of operating time and a basis of comparison for before
and after process improvement.
OEE =
Availability X Performance Rate X Quality Rate
Availability
determines how much time the process is available for
production. Shutdowns, breakdowns or set up and adjustment
times reduce availability of a process.
Performance rate
reflects the level of actual production with respect to
desired production rate. Inherent machine problem causes in
reduced performance rate.
Quality Rate
reflects the level of quality products produced out of the
total produced quantity. Defective products reduce quality
rate.
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