How to calculate Overall Equipment Effectiveness (OEE)?

How to calculate Overall Equipment Effectiveness (OEE)?

In manufacturing, the ability to accurately measure machine uptime, efficiency, and effectiveness is critical for an effective IoT implementation. Understanding overall equipment effectiveness (OEE) starts with getting a clear, comprehensive view into machine performance. But what exactly are you calculating, which goals are top of mind, and who is brought into the conversation when valuable machine information becomes available?

When it comes to OEE, there are a lot of factors to consider—here are some practical discussion points for getting started, broken into key questions about calculating OEE.

What is overall equipment effectiveness—and how can it be used to measure manufacturing productivity?

What is overall equipment effectiveness? Manufacturers use OEE to measure top performance indicators across their equipment. Most notably, these performance indicators include machine uptime (whether the machine is functioning properly), machine efficiency (whether the machine is getting the product out the door on time), and machine effectiveness (whether the product being manufactured matches your standards for quality).

Which roles in manufacturing should be most concerned with calculating OEE?

Everyone from shop-floor engineers to top-floor executives should be concerned with calculating OEE. For engineers, OEE helps determine whether day-to-day tasks are being accomplished. For leaders and plant managers, OEE helps determine whether equipment is being maintained and production goals are being met. For sales employees, OEE helps determine where sales support is required. Even for customers, OEE helps determine whether the product is meeting expectations.

What are some sensible ways to get started?

Start by identifying key improvement areas: understand machine failure modes, downtime, and their potential roadblocks to efficient production. Once you have a sense of where machine performance can be improved, take the opportunity to reevaluate and potentially reset your goals. Are they addressing the most prevalent equipment issues?

Once you’ve adjusted your goals, ask yourself if you’re maximizing the value of IoT analytics. Effective measurement leads to improvement—and ensuring your ROI on IoT lays the groundwork for efficient operability. 


How IIoT will deliver smarter factories

The Industrial Internet of Things (IIoT) has been described as the fourth industrial revolution. Like steam, the production line and information technology before it, the convergence of cyber and physical systems has the ability to utterly transform how factories operate.

How? At its core, the IIoT is able to bring together design, manufacture, supply and demand and maintenance, blurring the boundaries between these previously disparate elements of the factory floor. In this white paper, we’re looking at each of those areas in more detail, and giving some examples of how the IIoT will – and is already – delivering smarter factories.