Category: OEE

The Goal for OEE in 2020

What is your goal for Overall Equipment Effectiveness (OEE) in 2020? I suggest keeping it simple:

A continually increasing trend in OEE over time.

OEE can be an elusive metric unless you understand what it measures: Ideal Run Time vs Actual Run Time expressed as a percentage. The formula “Availability x Performance x Quality” categorically quantifies, expressed as a percentage, how OEE is affected by each factor.

Read “How to Calculate OEE – The Real OEE Formula With Examples” for a thorough introduction and explanation to calculate OEE correctly.

Correctly calculating OEE is only the beginning. To continually improve OEE over time is where the journey truly begins. As the formula to calculate OEE suggests, it cannot be treated in isolation.

Micro Lean and OEE

Although OEE is not necessarily considered a “lean” metric, the opportunities for improvement may very well be. To improve OEE, identify opportunities where the most significant increases exist and focus on the sub-trends for Availability, Performance, and Quality.

An opportunity to improve exists for every factor that is not 100%. As suggested by our post “Micro Lean in 2020,” the devil is in the details. The culmination of many small improvements can compound to yield significant positive results.

In practice, Availability and Quality tend to be the primary areas of focus. TPM (Total Preventive Maintenance), SMED (single minute exchange of dies), Quick Tool Change, and Six-Sigma represent best practices serving as mechanisms for change to help address these issues in kind.

As new initiatives, these programs quickly address the significant issues. The challenge is to seek opportunities for improvements continually. When viewed through the lens of “single-piece flow,” the opportunities are endless.

More advanced tools such as Va/Ve (Value Analysis / Value Engineering) and QFD (Quality Function Deployment), DOE (Design of Experiments), and TRIZ may help to explore opportunities that are not immediately obvious to the untrained eye.

The key is to recognize the goal and keep it in focus. The fun begins when we accept the challenge to maintain a continually increasing trend in OEE over time.

Until Next Time – STAY lean!

Related Articles and Resoures

How To Calculate OEE – The Real OEE Formula with Examples, Versalytics.org

Calculate OEE > A list of articles here on Versalytics.org

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OEE – Reporting Live Part 1

How do you report Overall Equipment Effectiveness?

The next greatest challenge after learning how to calculate Overall Equipment Effectiveness (OEE) is reporting it.  This is often a topic of great debate and likely a reason why so many avoid discussing it at all.

Note that we have prepared several Excel spreadsheets to help you get started and they are available free of charge from our downloads page.

The question is, “What do we report?”  Some will argue that you can’t compare OEE between plants, departments, shifts, or processes. While we tend to agree with them in some respects, there is relevance to understanding the differences in the results.  In a comparative context, we would also add that we never intended to use OEE as competing metric, rather …

Our objective is to continually improve OEE over time.

Our objective is to provide a report that calculates OEE for multiple parts and processes such that a “summary OEE” can be determined from any combination of factors included in our production report.

Our report can be further extended to include other factors derived from the reporting system itself.

How to Report OEE

While technologies exist that offer instantaneous OEE reporting on the shop floor, they do little to help you in the boardroom.  Over the next few posts, we will create a relatively simple reporting structure using Excel as our development platform.

Before we get started with our spreadsheet, lets first understand what data we need to collect.  We can then decide what elements to add to our spreadsheet accordingly.

Data Collection

We need a method for collecting the minimum amount of data that will satisfy our requirement to establish a robust OEE reporting system.  For now we will consider collecting the following data using a very simple production shift report::

  • Date
  • Shift
  • Employee (Name / Number)
  • Start Time
  • Finish Time
  • Part Number
  • Work Order (Job Number)
  • Sequence (Step Number)
  • Work Center (Machine)
  • Quantity Good
  • Quantity Scrap

This basic report can easily be enhanced by adding columns for setup, material changes, breaks, or other events to better understand what transpired over the course of a given shift.  We recommend keeping it short and simple.  Only add more rigorous reporting requirements as needed and if the results demand it.  A simple format encourages people to complete the forms more readily.

Reporting OEE

In our next post, we will introduce a spreadsheet where we can input our data and generate our OEE report.  Our spreadsheet will allow you to calculate OEE for any combination of the above data entries.

Until Next Time – STAY lean!

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