Ignoring productivity is a huge mistake when you’re in manufacturing.

Stop paying attention to it and you’ll miss out on important opportunities for improvement. You’ll be left vulnerable to competitors who become more productive than you.

By making your factory leaner you can achieve victory. With the right tools you can make constant improvements and see spectacular results.

OEE (Overall Equipment Effectiveness) is a simple but highly useful metric.

OEE helps you uncover your “hidden factory.” It gives you powerful information that you can use to run more efficiently and eliminate waste.

It can be expressed in the following simple formula:

OEE = Availability x Performance x Quality.

Now we’ll break down each part of the formula.

Here Are The 3 Simple Factors That Make OEE So Powerful

Factor #1 – Availability

Every time you need to stop production you experience availability loss. For example, maybe your equipment fails or you have a material shortage.

You need to know your:

  • Potential Production Time – The amount of time the machine would be running if there were no production stops
  • Actual Production Time – The amount of time the machine is actually operating.

Use the following formula:

Availability = Actual Production Time / Potential Production Time

If you have 100% availability it means your machine is never down.

Factor #2 – Performance

When your machine isn’t operating at maximum speed you have a performance loss. For example, maybe the incorrect settings are used or there is a misfeed.

You need to know your:

  • Theoretical Output – The number of pieces the machine is supposed to produce at full speed.
  • Actual Output – The number of pieces it actually produces while running.

Use the following formula:

Performance = Actual Output / Theoretical Output

If you have 100% performance that means you are running at maximum possible speed all the time.

Factor #3 – Quality

When you manufacture parts that don’t meet quality standards you have a quality loss. For example, every time you have to scrap or rework.

You need to know your:

  • Actual Output – The number of units you’ve produced in total.
  • Good Product – The number of units that meet quality standards.

Use the following formula:

            Quality = Good Product / Actual Output

If you have 100% quality that means every unit you’ve produced meets quality standards.

Here Is What Happens When You Put The 3 Factors Together

By measuring your availability, performance and quality you can harness the power of the OEE formula:

OEE = Availability x Performance x Quality.

Once you’ve started measuring OEE, you can look at the different factors and work to improve each one. For more details about the formula, you can visit the OEE Foundation website.

And if you’re interested in outsourcing your manufacturing, we can help with that.

This is How We Can Help You Outsource Your Manufacturing

At Gabrian International we provide turnkey manufacturing solutions to companies like yours. We help you take advantage of Asia’s low-cost labor market. We help you manufacture high-quality products. We focus on lean manufacturing principles.

We provide PCBs, Magnetics, Aluminum Extrusions and more.

If you’re looking for a manufacturing partner, request a quote from us. Our team of experts will be happy to answer any questions you have.