What is Overall Equipment Effectiveness and How Does it Impact Manufacturing Productivity?

Overall equipment effectiveness (OEE) is a key metric in nearly any manufacturing process. For manufacturers, OEE is a measurement of a machine’s ability to effectively complete its intended tasks. Historically, OEE has been deployed mostly by large factories, but with the increasing connectivity of machines, it’s a useful measurement for small operations too.

Calculating OEE requires the ability to capture granular data from all shop floor equipment, as well as the ability to translate this data into meaningful insights. This may be difficult for some, but an accurate OEE measurement can reveal hidden inefficiencies in production processes to help manufacturers get ahead of the competition.

How Does OEE Impact Manufacturing Productivity?

With a solid understanding of OEE across the entire factory, manufacturers can accurately identify sources of downtime and inefficiency. Once these sources are identified, corrective action can be taken to maximize productivity and ensure high levels of OEE on an ongoing basis.

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How Can Manufacturers Improve OEE?

With the right methods of data collection and analysis in place, there are many different ways that manufacturers can improve their OEE. A few of the most common ways include:

• Reducing the duration of planned downtime by assessing maintenance procedures
• Minimizing unscheduled downtime by monitoring machine performance
• Avoiding overloading production systems while maintaining peak productivity

While there are certainly other ways to improve OEE, especially when taking a granular look at the technical processes, the three methods mentioned above are some of the most basic but most effective.