How to implement an effective OEE (Overall equipment effectiveness) ?

Follow Total Productive Maintenance (TPM) philosophy steps to implement OEE.

OEE Factors introduces Availability, Performance, and Quality...the metrics that you will use to measure your plant's efficiency and effectiveness Availability takes into account Down Time Loss, which includes any Events that stop planned production for an appreciable length of time (usually several minutes – long enough to log as a trackable Event). Examples include equipment failures, material shortages, and changeover time. Changeover time is included in OEE analysis, since it is a form of down time. While it may not be possible to eliminate changeover time, in most cases it can be reduced. The remaining available time is called Operating Time. Performance takes into account Speed Loss, which includes any factors that cause the process to operate at less than the maximum possible speed, when running. Examples include machine wear, substandard materials, misfeeds, and operator inefficiency. The remaining available time is called Net Operating Time Quality takes into account Quality Loss, which accounts for produced pieces that do not meet quality standards, including pieces that require rework. The remaining time is called Fully Productive Time. Our goal is to maximize Fully Productive Time. Availability = Operating Time / Planned Production Time Quality = Good Pieces / Total Pieces OEE = Availability x Performance x Quality

O.E.E is an interesting KPI, especially for process industries. However, as any KPI, the company that is planning to implement a OEE dashboard for its machines or manufacturing lines needs to firmly identify the OEE as the right one that will help it in decision making (maintenance planning, capacity planning, quality plans...).  

So the first step is making sure that OEE will be aligning with your company's objectives. Second step is to identify which parts of the system (machines, manufacturing lines...) the OEE will be calculated. For instance, it is always recommended to study the OEE of the bottleneck.  

Now, after having defined the targets of OEE indicator, one should start collecting data in a regular way. This can be done through automatic data acquisition, semi-automatic or manual collection. As a rule, the frequency of data acquisition when it is not automatic depends on many variables such as the production rate, the machines data acquisition feasibility, resources availability ...

 It's essentially3 steps. The first one is to know whether OEE is needed or not. Second one is to define which parts of the systems the company needs to calculate it's OEE. Eventually, data collection in a methodical and organized way. As a result, OEE will be determined and it's evolution will be tracked for a better decision making.