The concept of overall equipment effectiveness (OEE) is all around us. We measure the performance of our automobiles in miles per gallon. We measure the effectiveness of our computers in file download speed. And we measure the success of our fitness regimen in our completion times in the 5K race. In our factories we measure the effectiveness of our equipment, in an effort to increase optimum machine uptime and operation, in a data driven process called OEE.

The theory of OEE is straightforward. The performance of a single piece of equipment, or even an entire factory, is governed by the cumulative impact of the factors of availability, performance rate, and quality rate. Analyzing these factors can help clarify a manufacturer’s equipment strategy. Yet OEE is often an underused or misapplied tool, even though it can help companies maintain existing equipment and even preclude the purchase of new equipment. It can be used effectively in both discrete and process based manufacturing environments. 

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