Manufacturing Terms

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Overall Equipment Effectiveness (OEE)

manufacturing

A metric that measures the efficiency and effectiveness of manufacturing operations.

expanded

Overall Equipment Effectiveness (OEE) quantifies how well a manufacturing unit performs relative to its designed capacity during the periods it is scheduled to run. It considers equipment availability, performance efficiency, and the quality rate, providing a comprehensive assessment of equipment productivity in production environments.

examples

A manufacturing plant runs a milling machine for 16 hours and it is operational and producing quality parts for 12 hours at 90% speed efficiency with 98% quality products.

Used commonly in automotive component manufacturing to identify areas of improvement by analyzing availability, performance, and quality metrics.

A packaging line working at a pharmaceutical plant measures OEE at 85% over a 24-hour shift, with 20 hours of uptime, 95% performance rate, and 92% quality rate.

Implemented in pharmaceutical industries to ensure packaging lines are as efficient as possible, maintaining conformity to stringent quality standards.

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