Overall Equipment Effectiveness abbreviated as OEE is an internationally standardized performance indicator for measuring machine efficiency. In short, the OEE value shows in percent how much of the planned production time is value-adding. The rest is losses and waste.
An OEE value can never exceed 100%. 100% OEE means that planned production time is fully utilized, i.e., no downtime, all production is at optimal speed, and all produced units are of approved quality.
OEE is Best Practice
To measure and follow up OEE is considered Best Practice within production and manufacturing. OEE and disturbance monitoring is a tool to create a shared understanding of the reasons behind losses and waste in the manufacturing process. OEE is an enabler for organizations to understand losses and disturbances and to increase effectiveness throughout the production processes.
OEE is the best-known Key Performance Indicator
OEE is the best-known KPI (Key Performance Indicator) to identify disturbances, losses, compare improvements, and to increase effectiveness in production processes.
OEE in short
OEE is a methodical way of describing where losses occur. When reviewing different loss categories, it is clear that when you strive to increase your OEE, you strive to improve value-adding time. Increasing the proportion of your time that creates value for your end-customer.
Breaking down OEE into categories makes it easier to identify appropriate corrective actions when your OEE value is deviant. There are several standards for this, and it is essential to find a structure that works for your factory.
When to use TEEP as KPI
If you want to view production effectiveness from a capital investment perspective, TEEP might be the KPI to use. TEEP is an abbreviation of Total Effective Equipment Performance. Instead of using “planned production time” as the base for 100% OEE, TEEP uses total time “24/7” as a base. This represent the actual amount of time the machine has at its disposal. Companies with multiple factories commonly use TEEP as KPI.