The OEE Calculation
OEE% = Availability% * Performance% * Quality%
was created by Seiichi Nakajima at Nippon Denso in the late 1960's but only reached the English speaking world in the late 1980's with the translation of his texts. World Class levels are reported at 85% but most companies struggle to reach a true 60%.
Leading manufacturers who have adopted Lean Manufacturing techniques approve the OEE Calculation as one of their continuous improvement tools. Lean ideas are not restricted to large corporations, more they are based on commonsense practice but they do require cultural adoption throughout the company. Those that truly adopt a cultural change and engage their employees on the benefits will reap the rewards.
"If you are thinking of simply introducing OEE to get a number we suggest you save your money as that is not the purpose"
What the OEE Calculation identifies:
The OEE calculation is split into the three components of Availability, Performance and Quality.
These components identify the following losses:
Availability: Actual v Planned Production Time
Major Equipment breakdowns
Performance: How the process is running against the target rate
Qaulity: Percentage of right first time
The OEE calculation is expressed as a percentage and calculated as shown in the diagram below that also shows the following losses: