Friday, May 24
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A Brief Outline about OEE Calculation and SAP & OEE Benchmarks

Many people do not know about the definition of OEE. OEE means overall equipment effectiveness or overall equipment efficiency. Other definition of OEE is as follows – the way to measure the productivity of a machine in a production process. Some other easy definition of OEE is that it compares the performance of the machine with its relative capacity. Another simple definition of OEE is that it is a metric that finds out the percentage of planned production time, which is genuinely productive. Several ways are there in which OEE calculation can be done. However, it requires a OEE calculator to calculate the same.

How to Calculate OEE –

Several people will have this common question, OEE how to calculate? While doing the calculation, the OEE is 100% that means that your production is good and without defect. Many people would like to know the formula and OEE how to calculate? Firstly, you will need an OEE calculator.  The formula of OEE is very simple. Use the OEE calculator and do the calculation somewhat like this – OEE = axpxq. This is one of the common formulas of OEE. You should specifically use OEE calculator for the calculation, there is no specific calculator that is available for calculation. You will have to use the formula for calculation of OEE.

OEE Index and Calculation –

OEE how to calculate? The exact formula for calculation of OEE is OEE = availability x performance x quality. The OEE index can be described as a opportunity or place where there is room for improvement. In many companies, the OEE index is updated every one hour. There are 3 kinds of OEE index, these OEE index are as follows – speed index, quality index, and time index in the production process during performance. The OEE index is calculated from the OEE indicators, which is again time, speed, and quality through which it is calculated.

OEE Benchmark –

OEE is useful not only as a baseline, but also as a benchmark.  As a benchmark OEE is used to do the comparison of the performance of a given asset in the production, to the industry standards, to same in-house assets, etc. Whereas, as a baseline, OEE is used to trace the progress of overtime, in reducing the cost and eliminating the extra cost and waste from a given production assets. As a benchmark, there are certain percentages or points that are considered as a good score in OEE Berechnung. The OEE benchmark are – 100%, 85% and 60% are perfect, world class, & typical, whereas a OEE of 40% is considered as a low score.

SAP and Cost Reduction –

A SAP OEE i.e. overall equipment efficiency is known as a production solution to see, analyze, and measure the KPIs in both online as well as historical information based on SAP linked with manufacturing landscape, consisting of SAP OEE (overall equipment efficiency) and SAP MII and HANA, and SAP PCo. OEE Overall equipment efficiency is one of the best ways to reduce cost. With the help of overall equipment efficiency or overall asset effectiveness, you can get to know about the losses that you are incurring and it will help you to reduce the unnecessary cost and cut cost in production process.

Overall Asset Effectiveness –

Overall asset effectiveness is a maintenance key performance indicator that calculates the assets level of productivity. OEE is a amalgamation of 3 factors that will tell you how effective is an assets during the manufacturing process, like assets availability, asset performance and production quality. It is very important that while measuring your OEE or doing the OEE calculation you get a score of 100% which is the best score and it shows that the production of your goods parts are good and without any kind of mistake, error or defect.

Different Scores of OEE and what it means –

Whereas, if you get a score of 100% it means that OEE is a apt production which is quick with no stop time, and a OEE of 85% is considered as world class and for many industries it is a long-term goal. And, 60% of OEE is typically fair and there is a substantial room for improvement which the OEE index indicates. Apart from all of these 40% of OEE is less a score, it is not uncommon among the manufacturing companies, and they can track and improve their work and performance. Also, it is a chance where they can identify their incurring losses and reduce the cost or eliminate the waste. It is applicable to other OEE scores also until you get 100% score of OEE. In a low score of OEE you can track the reasons for stop time and also look after the sources of downtime.