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Overal Equipment Effectiveness (OEE)

Manufacturing Metrics Made Easy

What is OEE?
Overall Equipment Effectiveness (OEE) is a comprehensive metric that evaluates the productivity and performance of manufacturing processes or individual pieces of equipment. By providing insights into equipment utilization and efficiency, OEE helps optimize the production of goods and delivery of services.

OEE Availability
Availability refers to the extent to which a system or service is accessible and operational when needed by measuring the ratio of actual runtime and the planned production time. Any unplanned events that stop planned production for an appreciable length of time is an inefficiency that is reflected in OEE Availability.

Imagine a manufacturing plant operates a machine for an 8-hour shift with scheduled breaks totaling 1 hour. However, during the shift, the machine experiences 30 minutes of unplanned downtime due to maintenance issues. Therefore, the actual production time becomes 6.5 hours (derived from 8 hours scheduled - 1 hour break - 30 minutes unplanned downtime).


The Overall Equipment Effectiveness (OEE) Availability is calculated as 92.86%, obtained by dividing the actual production time (6.5 hours) by the scheduled production time (7 hours).

OEE Performance

OEE Performance is not based on the number of units produced, but on what the line was designed to process over a given period of time. If equipment is running slower than what it is capable of, then it is not as efficient as it could be and is reflected in OEE Performance

A final formulation machine is designed to reach a target rate of 1000kg per hour. Based on this design capacity, in 6 hours and 15 minutes of actual runtime, the machine theoretically could produce 6250kg (1000*6.25).


However, the cumulative output is at 5000kg only, then the OEE Performance is at 80%

(calculated by 6250/5000)

OEE Quality

OEE Quality for continuous real time monitoring is determined by the difference between the actual point value and target set point predetermined over the target set point predetermined.

Overall quality of equipment parameters will be determined instantaneously and the average quality since the start of production will be calculated and reflected in OEE Quality. 

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In a continuous process, maintaining optimal Mixer and Dissolver speeds is crucial to ensure product quality, with deviations of no more than 10% permitted for the Quality % of each equipment. Sensors detected Mixer Speed at 78.56 rpm and Dissolver Speed at 85 rpm, leading to a 0% quality rating for Mixer Speed (calculated by (78.56-90)/90 *100% which is more than 10% deviation, thus 0% bad quality) and a 100% quality rating for Dissolver Speed.


This final calculation represents the Overall Equipment Effectiveness (OEE), amalgamating all three OEE sub-values. It's crucial to understand that these sub-values operate independently. For instance, if equipment downtime occurs, only OEE Availability is impacted, while OEE Performance and OEE Quality remain unaffected. Similarly, if the equipment operates below optimal speed, only OEE Performance is affected, leaving OEE Availability and OEE Quality unchanged, and so forth.

OEE = Availability x Performance x Quality

Why OEE Matters

Standardized Performance Measurement

OEE provides a standardized framework for measuring and comparing the performance of different equipment or production lines within a facility or across multiple facilities.

Identifying Opportunities for Improvement

By analysing OEE components, organizations can pinpoint areas for improvement and implement targeted strategies to increase efficiency and productivity.

How ISDN Can Help OEE Software Implementation

ISDN's advanced OEE software monitors and analyzes equipment Availability, Performance, and Quality, providing actionable insights for improvement. Data Integration and Visualization’s integrates data from various sources, such as mixers, dissolvers, and weight sensors, into a centralized system, enhancing visibility and control. This enables informed decision-making based on comprehensive data.

In summary, OEE is a powerful tool for identifying losses, benchmarking progress, and improving equipment productivity. It is an essential factor influencing performance for all types of manufacturing facilities, production entities, workshops, or individual workstations.

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