OEE part 3: The model

Once we have seen a OEE introduction (link here) and the most frequent OEE calculations (link here), let’s review a model for OEE. The following graph shows:

  • the basic time blocks that impact OEE
  • typical problems that affect the time blocks
  • how to divide time to calculate typical OEE components

OEE ModelEach component helps flag certain problems:

  • A high “loading” component indicates low demand. The work center is idle most of the time. Unfortunately, there is not much to do from an engineering point of view to improve this number.
  • A high “planned downtime” component reveals:
    • the need of many scheduled corrective and preventive actions. This is a potential issue if problems are recurrent.
    • a high number of projects and updates. This is not necessarily a problem if projects are originated by new products or technologies.
  • A high “availability loss” component shows breakdowns, large adjustments, or lack of personnel, materials or systems when they are needed. The equipment definitely needs reliability improvement work, standardization and / or better scheduling to avoid starving the machines.
  • A high “performance loss” component proves low speed. Standardization and training are typical good next steps.
  • A high “quality loss” component obviously indicates that improvement must focus in getting first time quality, reducing scrap and reprocessing.

This analysis is the most important part of applying OEE to our processes. OEE is a means, not a goal. It must drive action and improve the effectiveness of our operations.

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