There is no question that having the proper equipment is important for any business. This is especially true for businesses that rely on technology to function, such as a computer repair business. A business that is unable to properly repair computers will likely not be successful. Similarly, a business that relies on machines to produce its products will also need the proper equipment to be successful. This is why it is so important for businesses to invest in the proper equipment and to maintain it.
Are you looking to improve your overall equipment effectiveness? Keep reading to find out if there is an overall equipment effectiveness formula you can use.
What is overall equipment effectiveness?
Overall equipment effectiveness (OEE) is a metric that seeks to quantify how effectively a manufacturing process is running. In order for a business to be successful, it is important for all aspects of the company to be effective. This includes the OEE, which measures how well the equipment is running and how much it is being used. This information can help businesses improve their operations and increase their profits. For example, if the OEE is low, it may indicate that the equipment is not running at its full potential. This may be due to a number of factors, such as a lack of maintenance or improper setup.
What is the formula for overall equipment effectiveness?
OEE is expressed as a percentage and is calculated by multiplying different factors, including availability, performance, and quality. Availability is a measure of how often the manufacturing process is able to run, expressed as a percentage of the total time the process could be running. To calculate availability, the formula is:
Availability = Actual / real run time / scheduled production time
Performance is a measure of how efficiently the manufacturing process is running, expressed as a percentage of the maximum potential output. To calculate performance, the formula is:
Performance = (Ideal cycle time × overall total count) / run time
Quality is a measure of how often the manufacturing process produces quality product, expressed as a percentage of the total products produced. There is also a fourth factor, efficiency, which is the amount of time the machine is actually producing products. Other factors such as scrap rate and downtime can also be included in the calculation. Each organization will have its own specific formula based on its individual needs and goals.
To determine the final OEE calculation, the formula is:
Overall equipment effectiveness = (Good count × ideal cycle time) / planned production time
The purpose of calculating OEE is to identify areas where improvements can be made in order to increase efficiency and productivity. By identifying which machines or processes are underperforming, steps can be taken to correct the problems and improve overall output. There is no single magic bullet for improving OEE; rather, it requires a concerted effort by all members of an organization to identify areas for improvement and work together to make those changes happen.
How do you improve overall equipment effectiveness?
By setting goals for improving OEE, companies can strive to achieve the greatest possible efficiency and productivity from their equipment. Factors that should be considered when setting OEE goals include the availability, performance, and quality of machines and other production assets. In addition, management must identify the specific areas where improvement is needed most and create achievable targets for each. Once goals have been set, a variety of techniques can be used to improve OEE. These might include process redesigns, training programs for operators and technicians, or upgrades to existing machinery. By tracking progress against these goals on a regular basis, companies can ensure that they are making efficient use of their resources and achieving the best possible results from their operations.
In summary, overall equipment effectiveness is important to an organization’s success. Organizations must tailor their approach to equipment effectiveness based on their specific needs and goals. However, there are a few key factors that are always important to consider when aiming for high overall equipment effectiveness. These include effective asset management, robust process management, and continuous improvement.
