Posted by: productivityinc | June 17, 2014

Tips on OEE, and the metrics of TPM

blog imageThere has been much debate over the OEE (Overall Equipment Effectiveness) metric…how, when and where to use it most effectively. We are currently working on a white paper on the subject that will be published shortly.  In the meantime, here are a few tips:

  1. “OEE is a way to assign numerical value to opportunity,” Ellis New, senior consultant at Productivity Inc. says. Think of it as an improvement metric.
  2. OEE provides an ideal structure for teaching about the nature of losses, and changing mindsets.
  3. Use OEE to analyze problems and opportunities at specific constraints in your process, not as an aggregate key performance indicator (KPI) for a value stream or plant.
  4. Use simpler metrics (such as build to schedule), to track how production is going. Build to schedule won’t reveal much about losses or improvement opportunities, but it’s easier to calculate and understand as a gauge of production status.
  5. Always remember that it’s not about the absolute number, it’s about the improvement. Use OEE conscientiously and in context, as a “yardstick” for improvement (not as a stick with which to punish people).

If you’d like to receive a copy of the OEE white paper, click here to submit a request.


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