What Is The Purpose of Overall Equipment Effectiveness (OEE)?

The Purpose of Overall Equipment Effectiveness (OEE) – to Improve the equipment performance.

OEE seeks to identify (bottlenecks), to improve flow in the value stream, capacity in operations and reduce cost.

OEE is a metric used to demonstrate the true effectiveness of an asset in terms of availability, performance and quality.  It is an enabler for teams to problem solve, drive cross-functional teamwork and structure maintenance for best performance.



Benefits of Overall Equipment Effectiveness

  • Focused activities to improve the process bottlenecks
  • Teamwork between operators and artisans
  • Improved unit cost through revenue opportunities
  • Re-allocation of resource
  • Central maintenance focused on resolution of complex issues
  • Focussed on Planned Maintenance

OEE focusses on the elimination of the 6 Big Losses:

  1. Breakdowns
  2. Setup and Adjustments
  3. Minor Stops
  4. Reduced Speed
  5. Start-up Yield
  6. Production Rejects.

From the Value Stream activities and the capacity analysis, OEE is deployed on the identified bottlenecks to improve performance.

Any shift in capacity leading to more volume must be managed through pull systems and buffer management.

Struggling to make your company become Lean?

Educate your leadership and begin to see the Lean Operating System and Principles appear across all of your standardised work and procedures.

Speak with our expert Lean Consultants today.

This page was written by Bob Newton in February 2018.
Due for review in 2019.

Share This