{"id":34387,"date":"2023-12-15T12:49:46","date_gmt":"2023-12-15T20:49:46","guid":{"rendered":"https:\/\/www.linquip.com\/blog\/?p=34387"},"modified":"2023-12-15T12:49:46","modified_gmt":"2023-12-15T20:49:46","slug":"what-is-oee-how-can-manufacturers-benefit-from-it","status":"publish","type":"post","link":"https:\/\/www.linquip.com\/blog\/what-is-oee-how-can-manufacturers-benefit-from-it\/","title":{"rendered":"What Is OEE &#038; How Can Manufacturers Benefit From It?"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_83 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.linquip.com\/blog\/what-is-oee-how-can-manufacturers-benefit-from-it\/#Understanding_OEE_In_Manufacturing\" >Understanding OEE In Manufacturing<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.linquip.com\/blog\/what-is-oee-how-can-manufacturers-benefit-from-it\/#Benefits_of_OEE_for_Manufacturers\" >Benefits of OEE for Manufacturers<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.linquip.com\/blog\/what-is-oee-how-can-manufacturers-benefit-from-it\/#Calculating_OEE_In_Manufacturing\" >Calculating OEE In Manufacturing<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.linquip.com\/blog\/what-is-oee-how-can-manufacturers-benefit-from-it\/#OEE_Security_and_the_Cloud\" >OEE, Security, and the Cloud<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.linquip.com\/blog\/what-is-oee-how-can-manufacturers-benefit-from-it\/#Made_to_Measure_OEE_and_Manufacturing\" >Made to Measure: OEE and Manufacturing<\/a><\/li><\/ul><\/nav><\/div>\n<p><span style=\"font-weight: 400;\">Photo by <\/span><a href=\"https:\/\/unsplash.com\/@ageing_better?utm_content=creditCopyText&amp;utm_medium=referral&amp;utm_source=unsplash\" target=\"_blank\" rel=\"noreferrer noopener\"><span style=\"font-weight: 400;\">Centre for Ageing Better<\/span><\/a><span style=\"font-weight: 400;\"> on <\/span><a href=\"https:\/\/unsplash.com\/photos\/a-man-and-a-woman-in-a-warehouse-ZlOlRnWk8zU?utm_content=creditCopyText&amp;utm_medium=referral&amp;utm_source=unsplash\" target=\"_blank\" rel=\"noreferrer noopener\"><span style=\"font-weight: 400;\">Unsplash<\/span><\/a><\/p>\n<p><span style=\"font-weight: 400;\">The manufacturing sector has always been known to be highly competitive. To not just survive \u2013 but thrive \u2013 in the industry, manufacturers need to use all the tools at their disposal. One of the most important of these is Overall Equipment Effectiveness(OEE).<\/span><\/p>\n<p><span style=\"font-weight: 400;\">But just what is OEE? And how does it benefit manufacturers?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">That\u2019s what we set out to explore as we define OEE and how modern solutions mark a significant step forward for businesses looking to optimize the manufacturing process.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Understanding_OEE_In_Manufacturing\"><\/span><b>Understanding OEE In Manufacturing<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">In an industry with notoriously tight margins, maintaining operational efficiency is always a primary goal. The overall efficiency of a given operation is what the OEE metric is designed to cover. It provides a clear and quantifiable measure of how well a manufacturing operation is utilized compared to its full potential.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">At its core, OEE is composed of three essential components:<\/span><\/p>\n<ul>\n<li><b>Availability<\/b><span style=\"font-weight: 400;\">: This measures the percentage of scheduled time that the equipment is operational. It takes into account events that halt production, such as equipment failures and unplanned maintenance, thereby reflecting the reliability of the machinery.<\/span><\/li>\n<li><b>Performance<\/b><span style=\"font-weight: 400;\">: This component assesses the speed at which the equipment operates as compared to its designed speed. Performance losses occur when operating at speeds lower than the maximum possible, often due to factors like suboptimal machine settings, minor stoppages, and slow cycles.<\/span><\/li>\n<li><b>Quality<\/b><span style=\"font-weight: 400;\">: Quality measures the proportion of good parts produced versus the total parts produced. It factors in the production of parts that meet quality standards without rework, indicating the effectiveness of the manufacturing process in delivering products that meet the required specifications.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">By analyzing these three aspects, OEE provides a comprehensive view of how effectively equipment is being used. It goes deeper than merely keeping machines running, it ensures that they are running optimally and producing quality products \u2013 all with a bare minimum of downtime.\u00a0 \u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Benefits_of_OEE_for_Manufacturers\"><\/span><b>Benefits of OEE for Manufacturers<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">For any metric to be worth measuring, it must provide insights and benefits that help and not hinder the manufacturing process. In this sense, the adoption of OEE ticks all the boxes.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Among the benefits that OEE brings to manufacturing are:<\/span><\/p>\n<ul>\n<li><b>Enhanced productivity<\/b><span style=\"font-weight: 400;\">: By pinpointing areas where production lags, OEE helps in optimizing machine use. This leads to increased throughput without the need for additional resources.<\/span><\/li>\n<li><b>Cost reduction<\/b><span style=\"font-weight: 400;\">: OEE identifies inefficiencies and waste, such as excessive downtime or poor quality outputs. Addressing these issues directly leads to lower production costs and reduced waste.<\/span><\/li>\n<li><b>Improved quality<\/b><span style=\"font-weight: 400;\">: A focus on the Quality component of OEE ensures that more products meet specifications on the first pass, reducing the need for rework and ensuring higher customer satisfaction.<\/span><\/li>\n<li><b>Data-driven decisions<\/b><span style=\"font-weight: 400;\">: OEE provides actionable insights based on real data, enabling manufacturers to make informed decisions about equipment maintenance, upgrades, and process improvements.<\/span><\/li>\n<li><b>Predictive maintenance<\/b><span style=\"font-weight: 400;\">: Regular OEE analysis can predict potential equipment failures, allowing for proactive maintenance and reducing unplanned downtime.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Ultimately, OEE aims to serve as a powerful tool for improving efficiency, reducing costs, and improving product quality. All these goals represent something of a Holy Grail for the manufacturing sector.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Calculating_OEE_In_Manufacturing\"><\/span><b>Calculating OEE In Manufacturing<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The three components of OEE that we mentioned earlier (Availability, Performance, and Quality) are all central to the calculation. The complexities of how these are used in the OEE calculation are summarized below:<\/span><\/p>\n<ul>\n<li><b>Availability<\/b><span style=\"font-weight: 400;\">: This is calculated by dividing the actual operating time by the planned production time. It reflects the percentage of time that equipment is available for production, accounting for downtimes due to breakdowns or maintenance.<\/span><\/li>\n<li><b>Performance<\/b><span style=\"font-weight: 400;\">: This measures the speed of production. It&#8217;s calculated by comparing the actual output with what could have been produced at optimal speed during the same period. This component highlights losses due to factors like slow cycles and minor stoppages.<\/span><\/li>\n<li><b>Quality<\/b><span style=\"font-weight: 400;\">: This component focuses on the output quality, calculated by dividing the number of good units produced by the total units started. It reflects the effectiveness of the production in delivering products that meet quality standards.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">The overall OEE percentage is then calculated by multiplying these three components (expressed as percentages):<\/span><\/p>\n<p><b>OEE = (Availability x Performance x Quality)<\/b><\/p>\n<p><span style=\"font-weight: 400;\">This is far from a comprehensive description of the<\/span><a href=\"https:\/\/evocon.com\/articles\/how-to-calculate-oee-formulas-examples\/\" target=\"_blank\" rel=\"noreferrer noopener\"> <span style=\"font-weight: 400;\">OEE calculation<\/span><\/a><span style=\"font-weight: 400;\">, but it does cover the basics and describes how it provides insights into production efficiency.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h2><span class=\"ez-toc-section\" id=\"OEE_Security_and_the_Cloud\"><\/span><b>OEE, Security, and the Cloud<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Advanced OEE systems and cloud computing are a perfect marriage. Integrating cloud technology in OEE systems brings significant benefits, both in terms of efficiency and data security:<\/span><\/p>\n<ul>\n<li><b>Enhanced data security<\/b><span style=\"font-weight: 400;\">: Cloud-based OEE solutions offer robust security measures, protecting sensitive operational data from unauthorized access and cyber threats.<\/span><\/li>\n<li><b>Real-time data access<\/b><span style=\"font-weight: 400;\">: Cloud platforms enable real-time data access and analysis.<\/span><\/li>\n<li><b>Scalability and flexibility<\/b><span style=\"font-weight: 400;\">: Cloud solutions provide scalability, accommodating the growing data needs of a manufacturing operation<\/span><\/li>\n<li><b>Cost-effective<\/b><span style=\"font-weight: 400;\">: By using cloud services, manufacturers can reduce costs associated with on-premise data storage and management.<\/span><\/li>\n<li><b>Remote monitoring and control<\/b><span style=\"font-weight: 400;\">: The cloud enables remote monitoring and control of manufacturing processes.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Physical security systems can also be integrated into cloud-based systems adding another layer of security to the manufacturing process. Cloud-based systems are increasingly being used throughout the manufacturing process to<\/span><a href=\"https:\/\/www.linquip.com\/blog\/manufacturers-are-cutting-costs-and-boosting-efficiency-by-switching-to-cloud-based-systems\/\" target=\"_blank\" rel=\"noopener\"> <span style=\"font-weight: 400;\">cut costs and boost efficiency<\/span><\/a><span style=\"font-weight: 400;\">, OEE is one of the processes that can benefit from this switch.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Made_to_Measure_OEE_and_Manufacturing\"><\/span><b>Made to Measure: OEE and Manufacturing<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Manufacturing is a tough industry to conquer but with a comprehensive OEE strategy and the right monitoring tools, the efficiencies that OEE offers are invaluable for ambitious manufacturers.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">From enhancing productivity and reducing costs to improving product quality and even<\/span><a href=\"https:\/\/www.linquip.com\/blog\/technologies-that-are-making-the-workplace-safer\/\" target=\"_blank\" rel=\"noopener\"> <span style=\"font-weight: 400;\">making the workplace safer<\/span><\/a><span style=\"font-weight: 400;\">, OEE serves as a multifaceted tool tailored to modern manufacturing needs. Its integration with cloud technology further amplifies its effectiveness, offering real-time insights and scalable solutions.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Staying ahead of the game in manufacturing is essential, OEE might just be the right tool to achieve it.\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 <\/span> <span style=\"font-weight: 400;\"> \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 <\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Photo by Centre for Ageing Better on Unsplash The manufacturing sector has always been known to be highly competitive. To not just survive \u2013 but thrive \u2013 in the industry, manufacturers need to use all the tools at their disposal. One of the most important of these is Overall Equipment Effectiveness(OEE). But just what is &#8230;<\/p>\n","protected":false},"author":1,"featured_media":34388,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"default","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"default","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","footnotes":""},"categories":[325],"tags":[341],"class_list":["post-34387","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-sponsored","tag-sponsored"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.linquip.com\/blog\/wp-json\/wp\/v2\/posts\/34387","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.linquip.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.linquip.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.linquip.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.linquip.com\/blog\/wp-json\/wp\/v2\/comments?post=34387"}],"version-history":[{"count":4,"href":"https:\/\/www.linquip.com\/blog\/wp-json\/wp\/v2\/posts\/34387\/revisions"}],"predecessor-version":[{"id":34392,"href":"https:\/\/www.linquip.com\/blog\/wp-json\/wp\/v2\/posts\/34387\/revisions\/34392"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.linquip.com\/blog\/wp-json\/wp\/v2\/media\/34388"}],"wp:attachment":[{"href":"https:\/\/www.linquip.com\/blog\/wp-json\/wp\/v2\/media?parent=34387"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.linquip.com\/blog\/wp-json\/wp\/v2\/categories?post=34387"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.linquip.com\/blog\/wp-json\/wp\/v2\/tags?post=34387"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}