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.
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::
- 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.
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!