Competitiveness and productivity are at the heart of manufacturers’ concerns: equipment, a production line, or a factory that does not produce at its maximum capacity loses profitability.
To know their effective productivity, many indicators exist. Among them, OEE is one of the most well-known and universal. So, what does it measure? How is it calculated? Why? And what are the developments in the age of Industry 4.0 and AI? Here’s everything you need to know!
Understanding OEE: Definition, Calculation, and Objective
SPR vs. OEE: What are the differences?
In production workshops, two concepts are often mentioned when it comes to calculating the performance and efficiency of industrial equipment: OEE and SPR. Often presented as different, these two concepts are actually the same. OEE (Overall Equipment Effectiveness) is the English equivalent of SPR, or Synthetic Performance Rate.
OEE, or SPR, is a benchmark indicator. Expressed as a percentage, it measures the time during which an installation operates optimally. In other words, when it produces compliant parts, at the planned speed, and without downtime.
Do not confuse SPR and GPR!
GPR (Global Performance Rate) measures the overall performance of equipment by including planned shutdowns or machine unavailability times in its calculation.
How to Calculate OEE? The AFNOR NF E60-182 Standard
Before being able to effectively analyze OEE to derive areas for improvement, it is necessary to calculate it. This allows for identifying and distinguishing the different sources of losses based on their origin. The analysis of each indicator then provides specific courses of action.
The best way to calculate OEE is to use the complete method proposed by AFNOR in standard NF E60-182. It includes 3 key indicators:
- Availability,
- Performance,
- Quality
OEE = Availability Rate x Performance Rate x Quality Rate
OEE is therefore the result of multiplying several factors expressed as a percentage:
- The availability rate measures the proportion of time during which a machine is actually operating and available to produce.
- The performance rate compares the actual production rate to the theoretical rate.
- The quality rate evaluates losses related to non-quality, scrap, and rework.
To correctly interpret OEE, it is necessary to relate it to a reference value: the target OEE. This is calculated based on the theoretical capacities of the equipment or line, as well as the production objectives set. It is therefore the difference between the OEE actually obtained and the target OEE that allows identifying whether the equipment or line is operating at its maximum capacity.
Calculating OEE: Some Good Practices to Adopt
To obtain an OEE that is as representative as possible of reality, it is necessary to observe a few rules
- Clearly define the scope of calculation: at the equipment or line level, or even at the workshop level.
- Collect reliable data, particularly on shutdowns, quantities, and production cycle lengths. This data can be difficult to obtain or, conversely, very numerous. It then requires consolidation work before use.
- Finally, measuring SPR must be accompanied by corrective actions, otherwise it risks being useless.
OEE: A lever for optimizing production in the age of AI and connected industry
What are the advantages of OEE for strengthening production efficiency?
OEE allows looking beyond a machine that seems to run continuously and meet its rates. Its calculation then highlights the elements that concretely impact its yield. For example, unplanned shutdowns, scrap due to lack of quality, or micro-stops in production. All these elements have a direct impact on productivity, but are rarely identified.
Improving the OEE indicator can then help strengthen the performance of a production tool with many advantages. Among them:
- Increased productivity: machines have minimum downtime and provide a better quality product.
- Reduced production costs: improving OEE helps reduce scrap, rework, and raw material loss.
- More reliable and durable equipment: to improve OEE, equipment maintenance and upkeep must be regular.
- Optimized and improved productivity: calculating OEE makes it possible to improve line availability without resorting to heavy investments, such as replacing machines, for example.
When equipment, a line, or even a factory is better utilized thanks to OEE calculation, the productivity gain benefits the entire company. OEE is therefore a strategic lever for putting data at the service of the company’s productivity and competitiveness.
Towards Augmented OEE thanks to AI and New Technologies
New technologies and artificial intelligence open up new perspectives for OEE calculation and utilization. Thanks to IoT sensors, data can be collected automatically as close as possible to the equipment. Their processing and analysis are then facilitated by digital tools and AI, which provide more reliable indicators and more quickly identify the main sources of losses in the workshop.
Combined with data collection and analysis technologies, OEE can also contribute in real-time to equipment control, detection of production deviations, and anticipation of certain failures. OEE thus becomes a true management tool, capable of providing a common vision to production, maintenance, and management teams.
This evolution is fully in line with our approach, which is to support manufacturers in the digitalization and optimization of their performance. By relying on the collection of field data, its centralization, and its analysis, MyDametis makes it possible to transform data from the workshop into concrete and actionable information. The objective is to give manufacturers better visibility into their performance, identify levers for improvement, and facilitate the implementation of appropriate actions.
Much more than a simple performance indicator, OEE is a true industrial management tool. By combining data, digital technologies, and providing areas for improvement, it allows moving from feeling to analysis, then from analysis to action, while bringing the operational challenges of the workshop closer to the strategic objectives of the company.
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