We have already told you that Overall Equipment Effectiveness (OEE) is an indicator that shows the equipment level of efficiency and is widely used in industry. The index measured by the OEE is extremely important to improve the processes.
The OEE formula compares the production capacity of a machine and the amount it actually produces. In other words, it is an indicator that translates the machine efficiency in a factory and measures the manufacturing capacity of new items. From this metric, you can find out the time spent in production. The OEE calculation is essential to reduce waste and increase machine performance, improving the operation.
How do you calculate OEE?
The formula that represents the calculation is OEE = availability x quality x performance.
Availability: Amount of time a machine has been working compared to the period it has been available for operation, in other words, stopped. This downtime can be planned or unplanned.
- Availability % = (Time producing / Scheduled time to produce) * 100 %
In other words: The longer the time producing, the higher the availability. The lower the availability, the longer the time the equipment has been stopped.
Quality: Index used to measure products and items that are defective and cannot be delivered to the client. It is essential to maintain control and constantly monitor the production in series.
- Quality % = (Quantity of Good Items / Total Quantity Produced) * 100 %
Performance: Evaluates the pace of production, gathering data about the production rate of a given item and comparing it with the expected level of agility. Performance compares the quantity produced with the quantity that could have been produced while the equipment was producing, regardless of the quality of what was produced, and is calculated as follows:
- Performance % = (Actual Production Quantity / Target Production Quantity) * 100 %
So, are you ready to find out your company OEE and optimize your processes?
We have created a spreadsheet that helps you find out the Overall Equipment Effectiveness of your machines. Click here to download it.
And that’s not all! With this spreadsheet you can also calculate the revenue per OEE of each product. See how improvements in your company can be simpler to implement than you thought?
What are you waiting for? Download the spreadsheet and start transforming your factory!
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