The method most commonly used in Lean Manufacturing to measure the productivity of machinery is OEE, which is Overall Equipment Effectiveness.

The calculation for OEE is:

OEE = Availability X Performance X Quality

Availability measures the percentage of time the machine runs compared to its availability. It could also include a comparison of available size. For example, if a machine is available for production, but it is stopped for an unscheduled maintenance repair, OEE is reduced. OEE availability is also reduced for set up time. The machine is available to run, but it can’t until the setup is produced.

One way of thinking about OEE availability is if the machine is scheduled to run but doesn’t, OEE is reduced. Some companies use a variation of this and calculate OEE based on what they would like to run the machine, which is either 24 hours 7 days per week, or some other amount they are measuring.

Performance measures the production rate compared to rated speed. For example, if the machine runs at 14000 pieces per hour when everything runs great and the machine is well maintained, but only 8000 pieces per hour near the scheduled PM or with particular orders or sizes, performance is reduced.

Quality is percentage of good product produced. For example, if 100 pieces are produced, but only 90 of them are good, quality is 90%.As you can see, OEE cannot be over 100%. OEE is also reduced by performing more setups if they take any time at all.

Machines, lines, and work center OEE’s are rarely compared to each other in any type of competitive sense. Unless they are the same type of equipment, performing the same number of setups, and producing the same type of product, the OEE’s are going to be different based on the variables.The best comparison of a piece of equipment’s OEE is against itself. The idea is to improve OEE when running the same type of business mix.

The Lean Manufacturing module on OEE in the online course teaches the details of the calculation, how it is used in Lean, and ways OEE is improved through the application of Lean principles. Our online lean manufacturing course teaches the elements of OEE and how to implement successfully immediately after completing the course.

BPR’s lean manufacturing certification online courses can be completed at your convenience 24/7. Simply log in and begin the course. You can stop any time and come back to where you left off. Once the course is successfully completed, the certification will be mailed to you.