What is OEE?
Overall Equipment Effectiveness or OEE is an industry standard Key Performance Indicator (KPI) used to measure the output compared to the potential capacity of manufacturing operations. OEE can be defined as the actual amount of specification compliant product manufactured, compared to the amount which could theoretically have been manufactured, for a stated period and presented as a percentage. It can be applied to individual machines or processes or complete production lines.
OEE was conceived by Japanese engineer Seniichi Nakajima in the 1980s as part of the Total Productive Maintenance (TPM) system. It has gained worldwide acceptance because it combines all the important metrics relating to manufacturing efficiency into a single value. OEE is also intrinsically linked to the Six Big Losses of manufacturing theory.
Which is best OEE, OOE or TEEP?
The best KPI to monitor your manufacturing is the one which answers your question. That may sound obvious, but although OEE is the gold standard, you should not simply measure OEE because others do.
To start with you need to consider if you will use the KPI to compare your manufacturing process with other plants in your organisation or industry. In that case it is important to make sure that you use the same calculation. It is worth checking how the KPI you wish to compare to is actually calculated. It is quite common for someone to call their KPI OEE when in fact it is OOE being calculated. Check where the data for different metrics comes from, such as the available time and bad quality count. Also, whether planned downtime is considered.