August 2016

CAN OEE BE USED TO REDUCE OPERATING COST?

OEE or Overall Equipment Effectiveness measures manufacturing performance against perfection. It is regarded as the global benchmark for measuring manufacturing efficiency. Any deviation from perfection drives up operating cost. OEE looks at three different losses and multiplies them across to assess total losses. Those losses are:

Availability - This is a measure of downtime (both planned and unplanned)

Throughput - This measures rate loss against the theoretical maximum run rate

Yield - This measures the amount of efficiency lost due to quality issues