Overall Equipment Effectiveness - OEE
Measuring efficiency and performance of production facilities
Overall Equipment Effectiveness (OEE) is an important indicator in production that is used to evaluate and improve the overall efficiency of facilities.
The most important key figures in production and manufacturing
Relevant KPIs in production are crucial for monitoring, analysing and improving the performance and efficiency of production processes. The exact metrics can vary depending on the industry, company goals and specific production processes. Here are some of the most important key figures in production and manufacturing:
OEE (Overall Equipment Effectiveness)
A metric that measures the overall effectiveness of equipment by combining availability, performance efficiency and quality rate. OEE helps to identify losses in production - including downtime, loss of speed and quality issues.
Production utilisation
This is the ratio of actual production time to available time. It helps to assess how effectively production capacity is being utilised.
Productivity
Indicates how efficiently resources (labour, machines, materials) are used to produce goods and services. It is often calculated as the ratio of output to input.
Reject rate
The percentage of units produced that do not meet quality standards and are considered rejects. A low reject rate is a sign of high product quality and efficient production processes.
Lead time
Time required to produce a product from order placement to completion. It includes processing times, waiting times, transport times and inspection times.
Capacity utilisation
The ratio of the quantity actually produced to the maximum possible production quantity. High capacity utilisation indicates efficient use of production resources.
Total cost of production
All costs associated with production, including material costs, labour costs, machine costs, etc.
The selection of relevant KPIs should be closely linked to the company's objectives and production strategy. It is important to regularly monitor performance and adjust KPIs accordingly to ensure that production remains efficient and competitive.
OEE - Key figure and calculation
The key figure OEE (Overall Equipment Effectiveness) is a measure of the overall effectiveness of production facilities. It provides a comprehensive picture of how effectively a production plant is being utilised. The OEE is calculated from three key factors:
OEE = Availability x Performance x Quality
Quality
The quality factor measures the proportion of defect-free products in the total quantity produced. It is calculated by dividing the number of good units by the total number of units produced (including rejects and rework).
Availability
This factor measures the extent to which planned production time is actually utilised for production. It is calculated by subtracting downtime (e.g. due to machine breakdowns, maintenance) from the planned production time and dividing the result by the planned production time.
Performance
This factor evaluates whether the production system is being operated at the maximum possible speed. It is determined by comparing the actual production quantity with the theoretically possible production quantity (at maximum speed and without downtimes).
The ideal OEE value is 100 %. Although this can be achieved in the short term, it cannot be maintained over a longer period of time. Good OEE values are 80 % and above. OEE calculation and visualisation make it possible to identify sources of loss and optimise bottleneck machines. Non-optimised machines, which usually only have a value of 60%, can be improved in this way.
The OEE metric helps production managers to identify bottlenecks and areas for improvement in order to increase overall efficiency and optimise production processes. It is a powerful tool for continuous improvement in the manufacturing industry.
6 reasons in favour of OEE
The following 6 reasons illustrate why OEE is an important tool for companies that want to optimise their production processes and increase their competitiveness. This requires companies to prepare for the challenges of Industry 4.0 in a future-oriented manner.
- Increasing production output by identifying inefficiencies.
- Reduction of losses by minimising downtimes and production errors.
- Reduction of production costs through more efficient processes.
- Increased transparency with clear performance data.
- Basis for continuous improvement through regular monitoring.
- Optimisation of capacity utilisation by uncovering unused potential.
Improving OEE to increase competitiveness
By combining the approaches listed above, you can not only improve your company's OEE, but also create the basis for sustainable growth and competitiveness. It is important to establish a continuous improvement process in which you regularly check whether the measures taken are achieving the desired results and make adjustments if necessary.
Optimise maintenance
Carry out regular and preventive maintenance to minimise downtime.
Process optimisation
Analyse and improve production processes to eliminate bottlenecks and shorten throughput times.
Strengthen quality control
Implement strict quality controls to reduce errors and increase product quality.
Use data analysis
Use OEE tracking tools to collect and analyse data and derive improvement measures.
Employee training and commitment
Train your staff regularly and encourage the involvement of all employees in the improvement process.
Use of technology
Invest in modern technologies and automation to increase efficiency and productivity.
Implementation of OEE
Implementing OEE requires commitment, time and resources, but can lead to significant improvements in production efficiency. By consistently implementing the following steps, companies can increase their productivity, reduce costs and strengthen their market position.
Laying the foundations
Promote understanding: Explain the importance of OEE to all stakeholders.
Training: Offer training on OEE calculations and their benefits.
Record data
Set up a system: Use automated or manual systems for data collection.
Ensure accuracy: Establish guidelines for data collection.
Calculate and analyse OEE
Calculation: Apply the OEE formula to measure availability, performance and quality.
Analysis: Use analysis tools to identify potential for improvement.
Set goals
Benchmarking: Set realistic targets based on current performance and industry standards.
Strive for improvement: Promote a culture of continuous improvement.
Carry out improvement measures
Root cause analysis: Identify the main sources of loss and take targeted measures.
Apply methods: Implement TPM and lean methods to increase OEE.
Involve employees
Participation: Encourage the active participation of employees in improvement processes.
Recognition: Recognise employees' contributions and successes.
Monitoring and customisation
Review: Carry out regular reviews of the OEE values.
Adaptation: Use feedback to continuously improve strategies.
Utilising technology
Invest: Consider modern technologies and automation as a means of increasing efficiency.
Monitoring and optimisation of production with OEE dashboards
Monitoring and optimising production using OEE dashboards is an effective way to collect, analyse and act on real-time data. OEE dashboards provide a visual representation of production line performance and allow decisions to be made based on up-to-date information.
Benefits of using OEE dashboards
Improved decision making
With access to real-time data and trends, managers and teams can make informed decisions.
Increased efficiency
Identification and minimisation of downtimes, speed losses and quality problems lead to increased production efficiency.
Cost reduction
Waste can be reduced and operating costs lowered by optimising production processes.
Quality improvement
Insights into quality rates help to identify and reduce the causes of rejects and rework.
Transparency
All levels of the organisation gain insight into production performance, which improves communication and collaboration.
Continuous improvement
Long-term data supports the identification of improvement potential and the implementation of lean management principles.
Adaptability
The ability to react quickly to changes in the production process increases the company's flexibility and competitiveness.
Data visualisation for production management - making complex data understandable and manageable
Data visualisation plays a crucial role in production management by transforming complex amounts of data into easily understandable and usable information.
OEE dashboards are usually web-based or integrated as part of a wider production management system, making it easy to access from different devices and collaborate as a team. The key to an effective OEE dashboard lies in its ability to transform complex data into easily understandable and actionable information to continuously improve production performance.
Improving OEE and ensuring competitiveness with WeASSIST from WERMA
Based on the comprehensive collection of operating data and machine data, OEE dashboards provide you with detailed insights into the status of your production. You can see the current status of your machines and systems and derive optimisation measures. This results in significant added value:
- Optimisation of existing systems instead of installation of new machines
- Data-based process understanding to minimise errors
- Insight into reasons for losses (overproduction, waiting times, rejects, ...)
Comparison - Production with and without WeASSIST:
X - Help on call and travelling times
Search and travelling times continue to increase until the contact person is found. Help is now provided on request to see if the contact person can help. Machine downtime increases further.
X - Unknown downtime
No statement can be made on the question of downtime. Only a time estimate is possible, as no data is recorded.
X - Unknown disturbance reasons and key figures
Production manager would like to know the most recent reasons for disruption. He would also like an overview of the other key figures. No information can be provided as no data collection is available.
✔ - Recorded downtimes / documented reasons for faults
Machine fault has been rectified and can now be easily documented. This means that the downtime is recorded and the reason for the fault is documented.
✔ - Key figures available
Key figures can now be easily supplied at the request of the production manager.
✔ - OEE at a glance
Shifts and working times can be planned precisely. The downtimes of production equipment are automatically recorded and compared with the planned working times (planned occupancy time). Availability is thus displayed in real time.
Preparation of machines & systems in production
Before you can evaluate the data from your machines and make it usable for OEE analyses, you must first ensure that the machines supply the required data. WERMA is the right partner for this! With WeASSIST we offer you:
Hardware and software from a single source
Coordinated software on the data-capturing hardware to visualise the relevant data of your value-adding processes quickly and easily and to derive optimisations.
Ready-to-use system without a large software project (no IT department required) "Customising by the customer"
The intuitive user interface allows you to put together the desired solution components to obtain targeted and relevant data.
SaaS solution (Software-as-a-Service)
WERMA takes over the operation, maintenance and provision of the infrastructure. Access to the solution via browser and app to monitor production and identify performance losses at any time and from any location.
Simple monitoring without intervention in the machine control system
WeASSIST from WERMA utilises the existing 24V status signals on the signal tower, which are provided by the machine control system. Using transceivers, the signal tower of individual machines and workstations can be retrofitted modularly (via Plug&Play) and thus easily integrated into existing processes and systems.
Stand-alone or fully integrated
Use of the system as a quick stand-alone solution without intervention in the internal systems or integrated into the ecosystem via an interface.
