Understanding the OEE Calculation

OEE in Relation to TPM
To measure is to know	As long as the daily production process does not correspond to the ideal situation it is necessary to show the deviations and to search for a way to eliminate them. Getting a clear picture of the Six Big Losses – the difference between the ideal and actual – is the first step towards improvement. By using a standardized methodology for measuring the Six Big Losses, direct and specific attention can be paid to eliminating the losses which are no longer acceptable.
Uncovering the hidden potential	Most sectors of industry use measurement methods for their production machinery. Quantities such as available time, units produced, and sometimes even the production speed are measured. These figures are useful tools for those who want to know what the output of the machine is. TPM works differently: TPM does not only want to know what the output of the machine is, but also what could have been produced. This is the reason why hidden losses are being searched for.
Objective of OEE	Measuring Overall Equipment Effectiveness is a simple but powerful measuring tool for obtaining information about what actually happens. It helps operators with documenting machine performances and initiates desired behavior, namely eliminating losses.
Result of OEE	The OEE calculation is a measurement that generates daily information regarding the level of effectiveness of a machine. In addition, it tells us which of the Six Big Losses need to be addressed. OEE is not the only indicator with which the performance of the production system can be measured. Nevertheless, it is an important instrument for making specific improvements while setting the right priorities.
Involvement of production team	The effectiveness of a machine affects first of all the employees on the shop floor. Therefore, they are the ones that have to be involved in determining the OEE and in the planning and implementation of improvements for the machine in order to continuously reduce the loss of effectiveness.
Effect on the operator	By carrying out daily measurements the operator will: become more familiar with the technical aspects of the machine and the way it processes materials; focus his attention on the losses; start having a stronger sense of ownership of the machine.
Effect on the supervisor	By working with the OEE data the supervisor will: learn the basics about the way the machine processes materials; be able to conduct specific research as to where losses occur and what the consequences are; be able to give the correct feedback to operators and other employees who are involved in the improvement of the machine; be able to keep his managers informed about the state of the machine and the results of the improvements.

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