OEE

Overall Equipment Efficiency, OEE

When the studied process is highly automated, the optimisation of the labour become less important in comparison to the often costly machines. For example the cost of the few operators controlling the steel rolling mill is neglectable compared to the rolling line itself. In order to make a cost difference the utilisation of that investment needs to be increased.

Also here the waste elimination is the way to increase added value.

The OEE index is the product of three indicators:

	Availability. During how much of the planned production time does the equipment actually produce?
	Performance. Is it running on its possible (or benchmark) level of performance?
	Quality. How much of the production is correct?

Each indicator can be 100%, i.e. the OEE can be 100%. However, it is often far below that.

The indicators themselves does not improve the situation so OEE is not - strictly speaking - a method itself. However, a study and documentation of them will visualise the problems preventing them from being 100%.

Yes, there we have the waste again! If we see it, we can fix it!

Which brings us back to the Kaizen approach...