Overall equipment effectiveness (OEE) is a hierarchy of metrics which focus on how effectively a manufacturing operation is utilized. The results are stated in a generic form which allows comparison between manufacturing units in differing industries.
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 best illustrated by a brief discussion of the six metrics that comprise the system. The hierarchy consists of two top-level measures and four underlying measures.
Loading: The portion of the TEEP Metric that represents the percentage of total calendar time that is actually scheduled for operation.
Availability: The portion of the OEE Metric represents the percentage of scheduled time that the operation is available to operate. Often referred to as Uptime.
Performance: The portion of the OEE Metric represents the speed at which the Work Center runs as a percentage of its designed speed.
Quality: The portion of the OEE Metric represents the Good Units produced as a percentage of the Total Units Started. Commonly referred to as First Pass Yield
The four underlying metrics
In addition to the above measures, there are four underlying metrics that provide understanding as to why and where the OEE and TEEP performance gaps exist. The measurements are described below:
The two top-level metrics
Overall equipment effectiveness (OEE) and total effective equipment performance (TEEP) are two closely related measurements that report the overall utilization of facilities, time and material for manufacturing operations. These top view metrics directly indicate the gap between actual and ideal performance.
Overall equipment effectiveness quantifies how well a manufacturing unit performs relative to its designed capacity, during the periods when it is scheduled to run.
Total effective equipment performance (TEEP) measures OEE effectiveness against calendar hours, i.e.: 24 hours per day, 365 days per year.
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