{"id":16558,"date":"2024-11-12T10:00:26","date_gmt":"2024-11-12T09:00:26","guid":{"rendered":"https:\/\/ezfactory.nl\/?p=16558"},"modified":"2024-10-24T16:06:45","modified_gmt":"2024-10-24T15:06:45","slug":"oee-what-is-it-and-how-do-you-calculate-it","status":"publish","type":"post","link":"https:\/\/ezfactory.nl\/en\/knowledge-base\/oee-what-is-it-and-how-do-you-calculate-it\/","title":{"rendered":"OEE: What is it and how do you calculate it?"},"content":{"rendered":"

OEE is often used to measure performance in the production environment, making it a commonly used KPI in manufacturing companies. In this blog, we’ll explain what OEE is, how to calculate it, and how it can improve the efficiency of the production process.<\/span><\/p>\n

What is OEE?<\/span><\/h2>\n

The full meaning of OEE is Overall Equipment Effectiveness. It is a method used to measure the overall efficiency and performance of the production process. This includes looking at both machines and equipment, as well as people. OEE shows the difference between the maximum production output that theoretically should be achievable and the actual production output. The OEE calculation refers to performance, availability, and quality to determine the ratio between potential and reality. An OEE score of 100% would mean that efficiency is optimal, with performance, availability, and quality each scoring perfectly.<\/span><\/p>\n

What is Overall Equipment Effectiveness used for?<\/span><\/h2>\n

With the insights provided by OEE, it becomes easier to measure underlying losses. It also gives you a better understanding of how you can systematically improve production processes to work towards an OEE of 100%. OEE is therefore used as an important benchmark for identifying losses, eliminating waste, and improving equipment productivity. By looking at both machines and equipment, as well as people, OEE is also used to create a motivated and engaged atmosphere in the workplace. In this way, OEE contributes to the culture within the company and to production efficiency. Additionally, OEE can be beneficial for <\/span>audits<\/a> by providing insights into the achieved results of ongoing processes.<\/span><\/p>\n

How do you calculate OEE?<\/span><\/h2>\n

OEE consists of several factors: availability, performance, and quality. The OEE calculation is therefore made from the following formula:<\/span><\/p>\n

OEE = Availability \u00d7 Performance \u00d7 Quality<\/b><\/p>\n

To calculate each factor separately, we use three formulas:<\/span><\/p>\n

Availability = (Total operating time – Planned non-operational time) \/ Total operating time<\/b><\/p>\n

Performance = (Net production time \/ Total operating time) \u00d7 100%<\/b><\/p>\n

Quality = (Good products \/ Total produced products) \u00d7 100%<\/b><\/p>\n

Each formula yields a percentage. These percentages can then be inserted back into the OEE formula. The higher the outcome of this calculation, the better the production performance. The lower the outcome, the more opportunities for improvement there are.<\/span><\/p>\n

Example OEE calculation<\/span><\/h3>\n

With the formulas outlined above in mind, we’ll provide a simple example of OEE for you. <\/span>Let’s assume:<\/b><\/p>\n