Understanding Overall Equipment Effectiveness (OEE) in Practice
Overall Equipment Effectiveness (OEE) is a crucial metric that measures the efficiency of production processes. Initially developed by Japanese expert Seiichi Nakajima, optimizing OEE can lead to increased capacity, cost reduction, better quality, and enhanced efficiencies. Measuring OEE allows for improved visibility into asset health, driving down costs and improving overall effectiveness. Improving OEE translates to waste reduction and significant cost savings, exemplified by the 1% effect. To achieve operational excellence, it's essential to focus on maximizing OEE in manufacturing practices.
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OEE (Overall Equipment Effectiveness) In Practice www.prodemyasia.com
OEE (Overall Equipment Effectiveness) WHAT IS OEE? OEE (Overall Equipment Effectiveness) is a bestpractices metric that identifies the percentage of planned production time that is truly productive. An OEE score of 100% represents perfect production: manufacturing only good parts, as fast as possible, with no downtime. www.prodemyasia.com
The term OEE was first used by Japanese maintenance consultant and teacher Seiichi Nakajima in the 1960s. He is commonly referred to as the Father of TPM and he stated that continuous improvement of OEE is one of the main goals of TPM (Total Productive Maintenance). www.prodemyasia.com
WHY OEE BECOME IMPORTANT ? www.prodemyasia.com
OEE and Why Its IMPORTANT ? By optimising OEE, you can : Increase capacity, Reduce costs, Improve quality, Increase efficiencies www.prodemyasia.com
Why MEASURING OEE? Measuring OEE gives manufacturers improved visibility into individual asset health, helps drive down costs, and improves both asset and process effectiveness. www.prodemyasia.com
Improve OEE means Reduce Waste www.prodemyasia.com
OEE and the 1% effect Increment 1% OEE This improvement resulted in savings of : - 50 per hour or - 1200 for that day. five days a week, equates to - 300,000 in annual savings. *example taking data from a real company in the automotive sector www.prodemyasia.com
www.prodemyasia.com WA: 081586475597 E-mail: prodemy.asia@gmail.com www.prodemyasia.com
References https://blog.seebo.com/oee-benchmarks-manufacturing-infographic/ https://limblecmms.com/blog/oee-overall-equipment-effectiveness/ https://www.ibm.com/blogs/insights-on-business/electronics/hey-bud-want-free-manufacturing-line-part-2/ https://www.interactivecoding.co.uk/free-technical-guide-explains-importance-benefits-oee/ https://www.sistemasoee.com/en/oee/90-advance/110-oee-effect-1 https://eriskusnadi.com/2011/09/25/tentang-overall-equipment-effectiveness/ https://www.slideshare.net/oeconsulting/total-productive-maintenance-tpm-maximizing-equipment-effectiveness-for- operational-excellence-by-allan-ung-operational-excellence-consulting www.prodemyasia.com
