ABSTRACT
We recently posed some real-life questions about Overall Equipment Effectiveness (OEE) to Robert Chiarlanza, director of TPM Consulting at Productivity, Inc.
For the uninitiated, OEE is a metric used in implementing Total Productive Maintenance to evaluate how well equipment is used. OEE is the product of three ratios as its formula shows: OEE = availability rate x performance rate x quality rate. The availability rate expresses losses due to unplanned stoppages, the performance rate expresses losses due to machine performance lower than ideal or standard operating rates, and the quality rate expresses losses due to rejects and rework. Collecting and analyzing OEE data is the basis of a systematic approach to reducing equipment-related losses.
