Overall Equipment Effectiveness

Overall Equipment Effectiveness (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.

Graphic showing the OEE pillar of the TPM model


Its primary purpose is to help teams identify losses on their bottlenecks and focus on ways to attack them.

  • Focussed 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:

  • Breakdowns
  • Setup and Adjustments
  • Minor Stops
  • Reduced Speed
  • Start-up Yield
  • 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.


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