OEE
OEE
OEE is an abbreviation for Overall Equipment Effectiveness and is one of your key Lean Manufacturing tools
This web site has been designed to help you get started and deliver the benefits of OEE to your organisation. It has been mainly applied to discrete manufacturing industries but do not let this limit your thoughts. It has been very successful applied to "Call Centres" and continuous processes. The KPI is a simple yet powerful benchmark to provide rapid feedback and efficiency improvements, with companies achieving 10-20% gains in several months.
The History
It was created by Seiichi Nakajima at Nippon Denso in the late 1960’s, but only reached the English speaking world in the late 1980’s with the translation of his texts. World Class levels are reported at 85% but most companies struggle to reach a true 60 %.
OEE Calculation
Major Losses identified by OEE
The KPI allows far more to be identified and improved upon if the data collected can be correlated and reported on efficiently. Many companies will start using spread sheets but rapidly find that admin and flexible reporting becomes an issue. This site provides links to companies providing manual and realtime software solutions.
Delivering improvements
To deliver real benefits from OEE it requires a full educational program, from operators to the managers and directors. For the program to be effective a cycle of improvement needs to be established. Companies that currently operate Six Sigma programs will be used to using data to identify areas of improvement and then using the data gained to monitor the modifications made. The importance placed on educating the production and operating staff of why an efficiency KPI is being introduced can not be understated to ensure a successful program.
We have been particularly impressed by the following OEE System