Overall Equipment Effectiveness is a key performance metric in manufacturing that measures how efficiently equipment is utilized. It is calculated as:
OEE = Availability \times Performance \times Quality
Where:
Availability = (Operating Time ÷ Planned Production Time)
Accounts for equipment downtime (e.g., breakdowns, setup time).
Performance = (Actual Production Output ÷ Theoretical Maximum Output)
Considers speed losses (e.g., running at reduced speed, minor stops).
Quality = (Good Units Produced ÷ Total Units Produced)
Measures defective or rework units.
OEE Interpretation:
100% OEE = Perfect production (No downtime, no speed loss, no defects).
85% OEE = World-class performance.
60-70% OEE = Typical for most manufacturers, with room for improvement.
Below 50% OEE = Significant losses and inefficiencies.
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