Overall Equipment Efficiency: What is it? Why is it important?

Imagine that you are at the plant, all of the equipment is working, and production seems to flow without problems. That is a dream come true for a maintenance manager. Everything is working fine, right…
OEE IndicatorThe thing is that all equipment is running without stopping; but breakdowns and production stops are not the only factor that affects productivity. Think about a machine that produces something, and due to some problem it only works at 90% of its capacity. The machine is working continuously, but we are still losing 10% of production. In fact, in a 10-hour shift, losses are equivalent to the machine being stopped for one hour!
Similarly, if the equipment produces defective pieces, we get the same effect because each discarded piece should be reworked or replaced by a new one. At the end of the day, the time spent producing defective pieces is comparable to stopping the machine altogether for that same amount of time. Continue reading