OEE or Overall Equipment Effectiveness is a system of hierarchical metrical evaluation devised by Seiichi Nakajima in the 1960s. It gauges how effectively a manufacturing operation is utilized. It is a means of assessing labor efficiency, so that the organization can keep track of its progress and observe its flaws. It identifies areas for improvement and how time, labor, efficiency can all be enhanced if combined to work together in a synchronized fashion. More about it can be found in the CMTI handbook.
How does it work?
OEE takes into consideration three factors while tabulating results. The time the machine is running for, the quantity of products the machine is producing, and the quantity of output of goods. It considers all three factors to generate a combined score, which indicates overall efficiency of the machine. The analysis thus acquired can help organizations implement newer standards, manage inventory and also handle the workforce.
How does it benefit me?
OEE is a universally accepted form of measurement and is used as the norm in almost all places. It makes tabulation easy by reducing all pertinent statistics to just one coherent number. It helps organizations strategize better, to formulate its resources better so as to achieve better results with the same elements available.
What makes this even more user friendly is the fact that it can work even in mostly manual operations. This might require some pruning and tweaking, but is mostly achievable.
By enlisting operators to take responsibility for OEE, organizations can ensure that the division of labor is smooth and hassle free. This chalks out clear and well defined rules and duties, so as to maximize efficiency. This can enhance the capability of the machine, cause lesser wastage of resources both manual and mechanical, can save power and also time. Operators in charge of OEE tend to develop a great relation with the machine, understanding its needs and are better equipped to handle any malfunctions.
OEE is tried and tested by generations of workers and everyone who has used it has vouched for its viability.
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