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What is OEE (Overall Equipment Effectiveness)?


Overall Equipment Effectiveness (OEE) is a key metric in manufacturing, designed to measure the productivity of machines and processes. It's commonly used across industries as a way to benchmark performance and identify areas for improvement. By understanding OEE, manufacturers can assess how well their equipment is performing and compare it with historical data or similar processes within their operations.


OEE consists of three main components: 


Availability, Performance, and Quality. These three metrics work together to provide a comprehensive view of how effectively equipment is utilized:


  1. Availability - This metric measures the proportion of scheduled time that the equipment is available and running. In can manufacturing, downtime can arise from planned maintenance for critical machinery, such as the Bodymaker or Necker, as well as from unexpected stoppages. Changeovers and routine tool changes also impact Availability but are often necessary for consistent quality.


  2. Performance - Performance evaluates whether the equipment is running at its optimal speed. In can-making, where high-speed production is essential, even slight misalignments or tooling wear in machines like the Cupper or Bodymaker can reduce performance. Slower-than-ideal operation or minor adjustments can result in Performance losses, as can delays due to material feed inconsistencies.


  3. Quality - Quality focuses on the proportion of good parts produced. In can manufacturing, defects can stem from issues in the D&I Process (in the Bodymaker), coating inconsistencies (in the IC Spray machine), trimming errors, or other machine-specific issues. Quality losses include defects, rework, or spoilage that reduce the ratio of acceptable cans produced.


An ideal OEE score is 100%, meaning equipment is available 100% of the time, operates at full speed, and produces only good parts. However, achieving 100% is rare. Instead, OEE is used to identify gaps and areas where improvements can be made, whether it’s reducing downtime, increasing speed, or improving the quality of output.


How OEE is Calculated


To calculate OEE, you multiply the percentages of Availability, Performance, and Quality. Each component identifies specific types of losses, which can be used to pinpoint improvement opportunities:


  • Availability Losses arise from downtime events, such as scheduled maintenance or unexpected breakdowns.


  • Performance Losses occur when the machine runs slower than its maximum speed or is halted due to material shortages.


  • Quality Losses relate to defective products or scrap, which reduce the proportion of acceptable output.



Industry Applications of OEE


Different industries apply OEE with varying focuses. In high-volume manufacturing, such as can-making, the emphasis may be on minimizing downtime to maintain a continuous production flow. In regulated industries like pharmaceuticals, more attention may be given to quality due to stringent standards and detailed changeover processes.



Beyond OEE: 


Total Effective Equipment Performance (TEEP)

While OEE measures equipment effectiveness during scheduled time, TEEP (Total Effective Equipment Performance) extends this to include planned downtime, offering a view of overall equipment potential. For can manufacturers, this can be particularly useful, as it helps assess the impact of scheduled maintenance on equipment utilization, providing a balanced view of both planned and unplanned downtime. Comparing OEE and TEEP can help prioritize maintenance schedules and better allocate resources for optimized production.