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Module 12 · OEE (Overall Equipment Effectiveness)

OEE (Overall Equipment Effectiveness)

The OEE formula — Availability × Performance × Quality — the six big losses framework, a full worked OEE calculation from real shift data, and how to use OEE to prioritize improvement efforts.

A machine can run its entire scheduled shift and still post a mediocre OEE score, because OEE multiplies three independent factors together and a weakness hidden in any one of them drags the whole number down. This module builds Availability, Performance, and Quality from first principles, maps each to its pair of losses in the six big losses framework, and works a complete OEE calculation from one stamping press's shift log — 87.5% Availability, 90.5% Performance, 90.0% Quality, for a 71.3% OEE.

By the end of this module you should be able to calculate all three OEE factors from raw production data and use the weakest factor to decide exactly which of the six big losses to investigate first, rather than treating a low OEE score as a single undifferentiated problem.

Free related reading in this studio
→ OEE Calculator→ Article: OEE Explained — Availability × Performance × Quality→ Concept Explainer: OEE — Availability vs. Performance vs. Quality

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