How to Calculate the Quality Factor for OEE

How to correctly calculate the Quality Factor for OEE Most people assume that the quality factor for Overall Equipment Effectiveness (OEE) is determined by simply calculating the yield of good parts from the total parts produced.  Unfortunately, this logic does not hold true when calculating the quality factor beyond the individual part or process. We will show you how to […]

OEE and the Quality Factor

Many articles written on OEE (ours being the exception), indicate or suggest that the quality factor for OEE is calculated as a simple percentage of good parts from the total of all parts produced.  While this calculation may work for a single line part number, it certainly doesn’t hold true when attempting to calculate OEE for multiple parts or machines. OEE […]

SPC for OEE

Some of our readers have expressed an interest in the application of Statistical Analysis Tools for OEE.  We have also reviewed various texts and articles that have expressed opposing views on the application of Statistical Tools with OEE data. Our simple answer is this:  At best, statistical tools should only be used on unique or individual processes.   Comparisons may be made (with caution) […]

Make or Break with OEE

Reward systems, bonuses, and other forms of compensation have been the topic of many newspaper articles and news broadcasts as of late.  Although attention has turned toward the viability and sustainability of the manufacturing sector, there are many of us who question how the performance of these companies is measured and, even more so, rewarded. While executive compensation is typically subject to scrutiny in and outside of […]

OEE – A Vantage Point Metric

The automotive industry has recently been plagued by doom and gloom as the economy continues to erode any chances for a rebound.  Chrysler has already met with the reality of an uncertain future and has subsequently filed for bankruptcy.  Unfortunately, as Chrysler plants shut down and cease operations for the next 30 – 60 days, suppliers will also feel the impact […]

Get Lean for Earth Day! OEE Required.

Being accountable to society as responsible manufacturers, it only seems natural that lean is green – by design. We encourage you to visit our Lean Environment page to gain a greater appreciation for how lean can help our environment and the bottom line.  (You can also see our Lean Environment page at the following address:  http://versalytics.org/lean-environment/ ) Being responsible stewards of […]

6 things OEE is NOT!

While OEE has been receiving much deserved attention as manufacturers look for ways to improve their bottom line, it is not the cure for all that ails manufacturing.  Many in the manufacturing community seem to be getting caught up in the buzz and hype of OEE and its profound ability to improve the bottom line. 1.  OEE is NOT magic As we were […]

How to use the 5 WHY approach

The 5 WHY technique, developed by Sakichi Toyoda, is one of the core problem solving tools used by Toyota Motor Corporation and has been adopted and embraced by numerous companies all over the globe.  This technique is unconstrained, providing the team with a high degree of freedom in their thinking process. As we suggested in our “How to Improve OEE” […]

How to Improve OEE – Any Questions?

Ask any Quality or Engineering manager and they will tell you that measurement systems are valuable tools to identify problems and opportunities.  The measurement system itself is not the answer – it is the data source, the EVIDENCE that drives the questions.  It is a part of the discovery and validation process to confirm the opportunity or problem and the effectiveness of the solutions to resolve it. A well […]

OEE Integration: Can you fix it?

As we are all aware, inspecting or measuring parts does not change the quality of the product.   Likewise, measuring and reporting OEE alone does not solve problems or improve performance.  While it is fair to say that increased focus and measurement of any process usually results in some degree of improvement, these are typically attributed to changes in human behavior due to […]