OOE, or Overall Operations Effectiveness, is a performance metric similar to Overall Equipment Effectiveness (OEE) that measures the overall performance of a machine or production process. The key difference lies in how Availability is calculated.
Understanding OOE
While OEE focuses on planned production time, OOE considers all available time, including periods when the equipment is not scheduled for production. This makes OOE a broader measure of operational efficiency than OEE.
Key Components of OOE
The calculation of OOE, like OEE, considers three main factors:
- Availability: This measures the percentage of total available time that the machine or process is actually running. Unlike OEE, it includes all time—scheduled and unscheduled. This addresses factors beyond planned downtime like weekends or periods of inactivity due to lack of orders.
- Performance: This measures the speed at which the machine or process runs compared to its ideal speed.
- Quality: This measures the percentage of good units produced compared to the total number of units started.
OOE Formula
OOE is calculated as follows:
OOE = Availability x Performance x Quality
Differences Between OEE and OOE
| Feature | OEE | OOE |
|---|---|---|
| Availability | Planned Production Time Only | All Available Time |
| Scope | Focused on scheduled production | Broader view of operational efficiency |
| Best Use Case | Improving specific production runs | Identifying overall operational gaps |
Benefits of Using OOE
- Holistic View: Provides a complete picture of operational efficiency.
- Identifies Hidden Losses: Reveals losses outside of scheduled production time.
- Drives Improvement: Helps pinpoint areas for improvement across all operational activities.
- Better Resource Allocation: Enables better allocation of resources by highlighting underutilized assets.
Example
Imagine a machine that could run 24/7, but is only scheduled to run for 8 hours a day, 5 days a week.
- OEE would focus on the performance during those scheduled 40 hours.
- OOE would consider the entire 168 hours in a week, potentially revealing significant downtime and lost opportunities.
If the machine's Availability is 50% (runs half the time), Performance is 90%, and Quality is 95%, then the OOE would be:
OOE = 0.50 x 0.90 x 0.95 = 0.4275 or 42.75%
This indicates that, overall, the machine is only achieving about 43% of its potential operational effectiveness.
In conclusion, OOE is a powerful metric for businesses seeking a comprehensive understanding of their operational performance and identifying areas for improvement beyond scheduled production activities.
