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Overall Equipment Effectiveness, Part 2

Applying the OEE formula

Matthew Littlefield
Tue, 09/25/2012 - 15:01
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In part one, “Overall Equipment Effectiveness,” (OEE) I gave a detailed explanation of how LNS Research thinks the OEE Formula is best applied to a given asset or production line to both maximize local production efficiency and overall supply chain performance. In this article, I’ll go through a fictional example and apply real numbers to all the OEE formula terms mentioned previously.

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To start, let’s review the complete OEE formula. Remember, overall equipment effectiveness should be thought of as a composite metric that measures a particular asset’s uptime, production efficiency, and quality. It is best represented as:
OEE = Availability × Efficiency × Quality

 …

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