Overall Equipment Effectiveness
OEE : A complete guide
to optimising industrial performance
Introduction to the Overall Equipment Effectiveness (OEE)
What is OEE?
OEE (Overall Equipment Effectiveness) is a performance indicator developed by Seiichi Nakajima in the 1960s. It is designed to measure the efficiency with which an industrial installation is used. Today, OEE is the most commonly used indicator for assessing the performance of industrial equipment.
Although there is no international consensus on this indicator, it is essential for identifying opportunities for improvement in the manufacturing process.
OEE improvement is generally measured against an equipment-specific benchmark, which means that its value is not directly comparable between different types of equipment or different production sites. Maximising OEE, or TEEP (Total Effective Equipment Performance), therefore does not necessarily guarantee overall optimisation of the production entity.
BASE
Calculating OEE:
methodology and formulas
The calculation of TRS (Taux de Rendemant Synthétique) is based on three main components:
1
Availability
This is the percentage of time the equipment is available for production. It can be calculated by dividing the actual operating time by the total planned time, then multiplying the result by 100.
2
PERFORMANCE
This measures the efficiency of the equipment in relation to its maximum capacity. It is generally calculated by dividing actual production by maximum theoretical production, then multiplying the result by 100.
3
Quality
This is the percentage of products that comply with quality specifications. It can be calculated by dividing the number of compliant products by the total number of products produced, then multiplying the result by 100.
4
OVERALL OEE
Overall OEE is a composite measure that combines the three factors mentioned above (availability, performance and quality) to give an overall indication of equipment performance.
1
Availability
This is the percentage of time the equipment is available for production. It can be calculated by dividing the actual operating time by the total planned time, then multiplying the result by 100.
2
PERFORMANCE
This measures the efficiency of the equipment in relation to its maximum capacity. It is generally calculated by dividing actual production by maximum theoretical production, then multiplying the result by 100.
3
Quality
This is the percentage of products that comply with quality specifications. It can be calculated by dividing the number of compliant products by the total number of products produced, then multiplying the result by 100.
4
OVERALL OEE
Overall OEE is a composite measure that combines the three factors mentioned above (availability, performance and quality) to give an overall indication of equipment performance.
OEE VS OOE VS TEEP
Difference between OEE and other indicators
OEE vs OOE: What are the differences?
OEE (Overall Equipment Effectiveness) and OOE (Overall Operations Effectiveness) are two indicators often used to measure the performance of industrial equipment, but they focus on slightly different aspects:
– OEE measures the overall efficiency of equipment, taking into account availability, performance and quality, as explained above.
– The OOE, on the other hand, also includes losses linked to series changes and adjustments, providing a broader view of production losses.
These differences mean that the OOE can often appear to be a more severe indicator than the OEE, because it incorporates more factors that can negatively affect performance.
Importance of OEE in relation to other metrics
OEE is crucial because it provides a direct measure of equipment efficiency and a solid basis for continuous improvement. Compared with other metrics that may focus on isolated aspects of production, OEE offers a global perspective on three key components that are essential for any company seeking to optimise its manufacturing processes and reduce costs.
GUIDE
Setting up and monitoring the OEE
How do you set up an OEE monitoring system?
Setting up an effective monitoring system for OEE involves several key steps:
- Definition of measurement parameters: It is essential to define precisely what will be measured and how, ensuring that the data collected is reliable and relevant.
- Choice of monitoring tools: Using automated systems such as an MES (Manufacturing Execution System) can make data collection and analysis much easier.
- Team training and involvement: Operators need to be trained to understand the importance of OEE and how their actions directly influence results.
Using the MES system to optimise OEE
An MES system helps to automatically collect the data needed to calculate the OEE, providing real-time information that enables rapid action to be taken to rectify inefficiencies. This type of system often incorporates advanced reporting and analysis functions, enabling constant monitoring and continuous improvement of production processes.
TOOLS
Indicators and causes of performance loss
Introduction to TEEPTRAK solutions
TEEPTRAK is a technological solution for monitoring and analysing equipment performance in real time. It offers a number of specific tools:
PerfTrak: to monitor machine performance.
QualTrak: to monitor product quality.
PaceTrak: to measure production rate.
Each tool enables operators to enter the causes of deviations directly via a tablet, making it easier to identify problems quickly and adapt processes.
Construction of performance indicators
The data collected by TeepTrak solutions is used to build robust performance indicators. These indicators help to understand the main causes of performance loss and to implement targeted corrective actions.
Performance loss nomenclature for OEE/TEEP
For effective monitoring of the OEE, certain categories of losses such as ‘production site stoppages’ and ‘planned downtime’ are generally not included in the calculation of the OEE, allowing the focus to be on avoidable losses and maximising operational efficiency.
optimisation
Improving OEE: strategy and techniques
Using TPM to improve OEE
Total Productive Maintenance (TPM) is a proactive approach to maximising the efficiency of industrial equipment. TPM involves all employees, from production operators to maintenance managers, in a collective effort to reduce losses and improve machine performance. By integrating TPM into business strategy, organisations can achieve the following benefits to improve their OEE:
– Reducing unplanned downtime: Preventive maintenance enables problems to be detected and resolved before they cause production stoppages.
– Improved product quality: By maintaining equipment in perfect condition, TPM contributes to the production of high-quality parts, thereby reducing the scrap rate.
– Increased productivity: A well-maintained machine operates at optimum capacity, which increases overall performance.
SMED method and OEE
The SMED (Single-Minute Exchange of Die) method is a technique designed to reduce the time required for format or equipment configuration changes. SMED plays a crucial role in improving OEE, especially in production environments that require frequent production changes. The main benefits of applying the SMED method include:
– Reduced downtime: By reducing changeover times, downtime is minimised, which increases machine availability.
– Greater flexibility: With faster changeovers, it is possible to respond more effectively to fluctuating demand and to produce small series economically.
– Better use of resources: By optimising change processes, less time and resources are spent on non-productive activities.
Integrating Industry 4.0 for optimised OEE
Industry 4.0 represents the next wave of digital transformation in the manufacturing sector. The integration of advanced technologies such as the Internet of Things (IoT), artificial intelligence (AI), and cyber-physical systems can significantly transform the calculation and improvement of OEE. Here’s how Industry 4.0 can contribute to optimised TRS:
– Real-time monitoring: Sensors and IoT devices can monitor machine operating conditions in real time, facilitating accurate predictive maintenance and reducing unplanned downtime.
– Advanced data analysis: Using AI and the analysis of large quantities of data, it is possible to identify failure trends and optimise production processes to improve OEE.
– Increased automation: Robots and automated systems can take on repetitive or dangerous tasks, increasing performance and quality while reducing human fatigue.
Would you like to find out more about OEE?
OEE & TEEP
Case studies and recent analyses
Case study: Impact of OEE improvement
The impact of improving the OEE can be illustrated by a number of case studies in various industrial sectors. Here are a few concrete examples:
Automotive industry: A plant manufacturing automotive components implemented a TPM programme to improve its OEE. After one year, the plant saw its OEE increase from 65% to 85%. This improvement led to a significant reduction in downtime and an increase in production without requiring additional investment in equipment.
Medical device manufacturing: By applying the SMED method, a company specialising in medical devices reduced its equipment changeover time from 50 minutes to 15 minutes, thereby increasing machine availability and improving OEE from 72% to 90%. This improvement also helped the company to better respond to market demands in terms of product variety.
Beverages sector: The introduction of Industry 4.0 technologies at a brewery enabled real-time monitoring of equipment performance, resulting in a 10-point improvement in OEE. Data collected via intelligent sensors has helped to optimise processes and reduce quality losses.
These examples show that targeted initiatives to improve the OEE can have a direct positive impact on a company’s production capacity and profitability.
Recent data : Trends and innovations
Current trends and innovations in OEE include:
Increased digitisation: The use of digital platforms for monitoring and analysing OEE is on the rise. These tools enable production data to be collected and analysed in real time, facilitating faster and more accurate decision-making.
Predictive maintenance: With advances in AI and data analysis, predictive maintenance is becoming common practice to prevent failures before they occur, helping to improve OEE.
Customisation of monitoring solutions: OEE monitoring solutions are becoming increasingly customisable, enabling companies to adapt precisely to their specific needs and integrate OEE into wider production management systems.
These innovations suggest a continuing evolution in equipment performance management, where OEE plays a central role in helping companies remain competitive in a rapidly changing industrial environment.
OEE & TEEP
Conclusion Key points and advice
Summary of key points
The Synthetic Efficiency Ratio, or OEE, is a fundamental indicator for measuring and optimizing the performance of industrial equipment. Through its calculation, which integrates the dimensions of availability, performance and quality, OEE offers a precise overview of production efficiency. Methods for improving OEE, such as TPM, SMED, and the integration of Industrie 4.0, show concrete results in increasing productivity and reducing costs.
Practical advice for production managers
For production managers, quality engineers and industrial performance consultants, the rigorous and systematic application of OEE principles is essential. It is advisable to set up a continuous monitoring system, to use modern measurement tools such as MES systems, and to keep abreast of the latest technological innovations that can help push equipment efficiency to its maximum. The aim is to transform data into concrete actions that generate continuous improvement in production.
In conclusion, OEE is not just a figure to be achieved, but a continuous journey towards operational excellence. By focusing on measurable improvements and adopting advanced technologies, companies can make significant gains in terms of performance, quality and customer satisfaction.