Measuring OEE (Overall Equipment Efficiency) is sometimes dismissed as irrelevant since OEE does not reflect the total cost.
OEE is a technical KPI that aims to improve the technical performance of a machine or production line. An OEE provides valuable information for evaluating projects to improve efficiency. And will also indicate priorities for action.
However, a number of cost-determining elements are not included in this KPI: energy consumption, personnel costs, specific logistics costs, etc.
In addition to OEE, a number of other KPIs has to be monitored in order to ensure good technical performance of an equipment. These KPIs should also be integrated with the OEE measurement.
In addition, a correct OEE is vital when discussing capacity bottle necks. This may relate to:
- working more correctly: improving quality
- working better: improving efficiency
- working more: taking new machines and equipment in production
- working differently: working in shifts, weekends
- ...
In short, an OEE should not be the only KPI to manage a production line. But it is an indispensable one. Without reliable OEE measurement, all attempts to compare and reduce costs are based on incorrect data.