Link to Blog: bit.ly/OEECalculation
In this video, we will discuss about OEE (Overall Equipment Effectiveness) .
OEE (Overall Equipment Effectiveness) is the gold standard for measuring equipment effectiveness (sometimes, we use it to monitor manufacturing productivity too!). While looking at operations, OEE simply gives a clear and powerful view of the ability to sustain quality production or how availability (time), quality (good product) and performance (speed) interact. OEE is the roadmap for other activities such as continuous improvement, lean, six-sigma and Cost of Quality.
For any organization to run profitably, both Effectiveness & Efficiency indicators are important. OEE is an excellent indicator related to Effectiveness of the machine. It is the single best metric for identifying losses, benchmarking progress, and improving the productivity of manufacturing equipment (i.e., eliminating waste).
In the early 1980s, Seiichi Nakajima from Japan introduced this terminology to the world. As per him, in TPM, the goal is, "The continuous improvement of OEE by engaging all those that impact on it in small group activities".
#OEE
#TPM
#Productivity