Overall equipment effectiveness

Overall equipment effectiveness (OEE) is a measure of how well a manufacturing operation is utilized (facilities, time and material) compared to its full potential, during the periods when it is scheduled to run. An OEE of 100% means that only good parts are produced (100% quality), at the maximum speed (100% performance), and without interruption (100% availability). Total effective equipment performance (TEEP) is a closely related measure which quantifies OEE against calendar hours rather than only against scheduled operating hours. A TEEP of 100% means that the operations have run with an OEE of 100% 24 hours a day and 365 days a year (100% loading). The term OEE was coined by Seiichi Nicky Jamima. It is based on the Harrington Emerson way of thinking regarding labor efficiency. The generic form of OEE allows comparison between manufacturing units in differing industries. It is not however an absolute measure and is best used to identify scope for process performance improvement, and how to get the improvement.OEE measurement is also commonly used as a key performance indicator (KPI) in conjunction with lean manufacturing efforts to provide an indicator of success. OEE can be illustrated by a brief discussion of the six metrics that comprise the system (the 'Six Big Losses').