Many people don’t know what is OEE-? The definition of OEE is overall equipment effectiveness. OEE meaning or definition is as follows – Overall equipment effectiveness does the calculation of the productivity of the machine during the production process. Another OEE meaning or definition is that OEE or overall equipment effectiveness is called as a KPI (key performance indicator) of maintenance which does the calculation of the assets level of productivity during the production process. Some other simple OEE meaning or direct definition that you will get is that OEE is an amalgamation of 3 factors that will tell you how efficacious is an asset during the manufacturing process. This includes asset availability, performance, and production quality.

OEE Calculation –

Another OEE meaning is that, if your OEE calculation shows 100%, then it mean that all the parts are working in a good condition, without any defect in the production process. This shows the overall performance in the production process, which can be seen through an OEE or calculation, can be done through OEE formula. The OEE formula is calculated by multiplying availability, performance, and quality shown by a percentage. In simple ways, the OEE formula is OEE= availability x performance x quality. The formula of OEE is calculated in somewhat this way – first the availability is measured by dividing the total run time of an asset by total planned production time of an asset.

OEE Benchmark –

OEE is very useful as both, baseline and benchmark. As a baseline, OEE can be used to trace the progress over the time, and eliminating unnecessary cost or waste from the given production asset. Whereas, as a benchmark, overall equipment effectiveness can be used to do the comparison of the performance of a given production asset which is similar to in-house assets etc. An OEE benchmark of 100% shows that your production is perfect. OEE benchmark of 85% shows that the production is world-class and if the benchmark is 40%, then its low.

OEE and SAP –

A SAP OEE is a manufacturing solution through which there is a visualization, analysis, and measurement of KPI in both online and historical data that is based on SAP, which is linked with manufacturing landscape consisting of SAP OEE and SAP MII, HANA, and SAP PCo. OEE is one of the best metric that helps to identify where you are incurring losses and how you can reduce the cost. Overall equipment effectiveness deutsch or Overall asset effectiveness is also helpful in reducing the overall cost of equipment. One of the major goals of working with this lean strategy is to reduce the cost.

German OEE and MES Solution –

For example, there is a machine C that has the lowest OEE, so the only way to look at it is to see what factors are involved in driving the cost, and finally affecting the profitability. This also applies in overall asset effectiveness.  OEE solutions are the basis for use in smart German factories. The German mainly uses MES solution, and the present key figures from all the production process is calculated digitally in German language. Numerous machines are not involved but there are different German production steps and materials are all involved. The question arises on keeping an eye on this all.

Many small and large German organizations have evaluated, considered, and adjusted in order to ensure highest possible performance, with highest German quality and lowest possible downtime, of all production resources. This measured as OEE in German ways. In order for the German production staff to guarantee this, they would require a complete overview of the same. Therefore, the value of overall equipment effectiveness i.e. the system of effectiveness is of extreme importance and relevance and is these considered as a central communication and control restriction for the production landscape.

MES Solution –

There is also a software based overall asset effectiveness optimization. Maintenance work using the paper and the pen are now outdated. Gone are those days. Now, the future belongs to the cloud-based software solution and algorithm, which is used to help and determine the OEE. This is the only method that is used for the analysis and optimization with the coordinated system including the production process, concerning the availability, performance, and quality. So, for doing this all the needed production data is combined together in MES solution. Plus, in this more data is required.

Conclusion –

OEE is one of the best calculations method through which one can calculate whether their production of goods is good or not. A 100% OEE means you are manufacturing good parts which are defect free. OEE is a vast concept especially when it comes with SAP.