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OEE is Overall Equipment Effectiveness and is a measure of the Availability (actual production time as a percentage of planned production time), Productivity (actual production speed as a percentage of planned production speed) and Quality product (Good product produced as a percentage of total product produced). These three percentages are multiplied together. A world class company will be operating at95% in the ratios of90% x95% x99%.
In other words it is a measure of how you use the company time and is affected by any downtime that is not planned, PM should be planned but affects finished goods, the lower the OEE the longer it takes / less finished goods there are.
For example:
Plan to work for12 hours, but with changeovers and breakdowns you only work for eight hours.
8 /12 x100 =67% Availability
In the time you were working you should have been producing at5000 parts per hour, but you only managed4500 parts per hour.
4000 /5000 x100 =80% Productivity
In the time when you were producing you had some parts as start up scrap and some in process rejects.
You had30,000 good parts from32,000 total parts (8 hours x4000 per hour).
30,000 /32,000 x100 =94% Quality
So the OEE is67% x80% x94% =50% with work to be done on all three aspects.
If you use the6 big losses you can direct your engineers to improve the losses.
I hope this helps you.
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