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Formal definition of OEE

15 January, 2016 - 09:25

According to the previous remark a basic definition of OEE is:


OEE = \frac{Valuable\, Operating\, Time}{Loading\, Time} 

where:

  • Valuable Operating Time is the net time during which the equipment actually produces an acceptable product;
  • Loading Time is the actual number of hours that the equipment is expected to work in a specific period (year, month, week, or day).

The formula indicates how much the equipment is doing what it is supposed to do and it captures the degree of conforming to output requirements. It is clearly a measure of effectiveness.

OEE is not only a metric, but it also provides a framework to improve the process. A model for OEE calculation aims to point out each aspect of the process that can be ranked for improvement. To maximize equipment effectiveness it is necessary to bring the equipment to peak operating conditions and then keeping it there by eliminating or at least minimizing any factor that might diminish its performance. In other words a model for OEE calculation should be based on the identification of any losses that prevent equipment from achieving its maximum effectiveness.

The OEE calculation model is then designed to isolate losses that degrade the equipment effectiveness.