What is Overall Equipment Effectiveness (OEE)?

Reduce costs and increase return on assets by improving your operational efficiency and asset utilisation

Improving Plant Performance Requires Real-time Visibility into Operational Efficiency KPIs

Manufacturing equipment utilisation and OEE can be improved by combining modern software solutions with IoT-enabled sensors and edge devices, or through integration with existing automation. This provides benefits to OEE including:

  • Visibility into runtime vs. idle and unplanned downtime
  • Capturing short stoppages and reason codes
  • Scheduling preventive maintenance based on equipment utilisation

overall-equipment-effectiveness

Overall Equipment Effectiveness

OEE is a very powerful metric. This KPI is calculated from actual equipment availability, performance, and quality losses relative to maximum expected performance — essentially capturing when an asset is available, the speed at which it operates, and the number of products out of quality specification.

  • Availability (%) = Operating Time / Available Time
  • Performance (%) = Total Production / (Target Production Rate x Operating Time)
  • Quality (%) = Good Production / Total Production

Real-time OEE visibility empowers operators to make corrective actions quickly. Detailed historical data of production performance and equipment utilisation enables root cause analysis of capacity losses to determine areas for continuous improvement.

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Measure, Visualise, and Continuously Improve Operational Efficiency and Asset Utilisation

Your production process is only as effective as the poorest performing equipment on the line. This constrains profitability, schedule compliance, uptime, and safety. 

Line and equipment performance management via OEE monitoring methods, for example, helps identify the weakest links in your lines, and restores them to run reliably at their full operating potential.

Consistent reporting is the foundation for comparing metrics across the business, which improves decision making and best practice sharing. That’s why improving equipment performance begins by standardising equipment performance metrics and KPIs.

Performance management strategies are amplified by emerging digital technologies such as IIoT, smart devices and cloud computing for automatic capturing of production performance data and equipment downtime events, freeing line operators from manual data collection tasks.

Visibility of real-time performance metrics and drill-down analytics empowers stakeholders with actionable information to reduce equipment downtime and increase the operating efficiency and profitability of manufacturing operations.

Plants that have used Performance Management software  as part of their continuous improvement strategy have reported the following equipment performance gains:

  • OEE up by 20-30 percent
  • Equipment uptime up by 10-20 percent
  • Manufacturing cost reduced by 10-30 percent
  • Quality improved by 5 percent

Delivering Equipment Performance Management

Delivering Equipment Performance Management

Improving equipment performance is a multi-faceted task with a great potential for reducing time-to-value in repeated deployments. It begins with standardisation of equipment performance metrics and KPIs across the business. Consistent digitalisation and unification amplified by emerging IIoT technology is the foundation for comparison of metrics, which improves business decision making and best practice sharing.

Delivering Manufacturing Performance Management

Delivering Manufacturing Performance Management

Insight Performance is a ready-to-use cloud-based solution for manufacturing equipment utilisation and production data collection, monitoring, and analysis. It can replace manual paperwork and after-the-fact reporting with real-time dashboards and analytics. It offers automatic data collection through IoT or edge devices, or integration with local automation systems. With performance data coming together in the cloud, it is easy to compare multiple plants or distributed systems.

Line Performance is a preconfigured model-driven MES software solution providing proven industry best practices in F&B/CPG line OEE and production performance monitoring and reporting. It includes work order management and execution tracking for visibility into the performance impact of operational activities and planning. Integration with production and packaging line control systems offers automated real-time data collection of equipment utilisation events in high resolution.

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