• September 3rd, 2014
  • Posted by LEP Weekly

What is OEE (Overall Equipment Effectiveness)?

What is OEE

What is OEE (Overall Equipment Effectiveness) and how does it effect your business?

What is OEE (Overall Equipment Effectiveness)?

OEE or Overall Equipment Effectiveness is a key metric used in Total Productive Maintenance (TPM) that improves and monitors the efficiency of a company’s manufacturing processes.  By simply calculating 3 Factors: Availability, Performance, and Quality, you can learn your OEE.    Knowing your calculation can help you find inefficiencies with processes, quality, consistency, and productivity which can have ultimately have an immediate impact on your company’s bottom line.  This calculation is extremely important to manufacturing companies.

What is OEE Calculation ?

Ellis New, Senior Manager Consultant – Business Practice Leader, Productivity Inc. explains,

“OEE (Overall Equipment Effectiveness) = Availability x Performance x Quality

Availability rate (percentage of time the machine is ready to produce, working properly, and not in the midst of changeovers or adjustments) = Available time (scheduled operating time − downtime) ÷ Scheduled operating time.

Performance rate (ratio of output produced compared to a standard) = Actual output ÷ Standard output.

Quality rate (ratio of good output compared to actual output)= Right-first-time output ÷ Actual output.”

Click Here to read the full article on Industryweek.com

Six Big Loses’ to OEE

According to the Academy for Optimum FX, “To be able to better determine what is contributing to the greatest loss and so what areas should be targeted to improve the performance, these categories have been subdivided further into what is known as the ‘Six Big Loses’ to OEE.”
These are categorized as follows:
OEE Six Losses

OEE Six Big Losses Breakdown











To Learn more about the Six Big Loses’ click Here

How Can Lean Enterprise Partners Help with your company’s OEE?

Lean Enterprise Partners is a private Lean consulting firm focusing on Lean Methodology. We can assist your company with not only finding your OEE, but also implementing custom programs that will increase the key factors of efficiency mentioned above.   What makes Lean Enterprise Partners different than other private consulting firms? Our guaranteed 3:1 ROI and holistic approach.  Contact us today!  (724) 485-2577



A private consulting firm focusing on Lean Methodology. What makes Lean Enterpirse Partners different than other private consulting firms? Our guaranteed 3:1 ROI. Contact us to discuss how you can implement Lean today!

David Buggan, President

Lean Enterprise Partners

(724) 485 – 2577



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