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Where does OEE (Overall Equipment Effectiveness) belong?


Quite Involved in Discussions

I try to figure out in which context OEE (Overall Equipment Effectiveness) is most likely to occur? One thing is theory, but where is it actually used in the organization? I have tried to come up with some candidates of more or less broad (management) concepts, and I would appreciate if you can let me know the realism or relevance of OEE with these concepts:

1. TPM = Total Productive Maintenance.
2. Maintenance Management.
3. TQM = Teen Quantitative Measures (lol, just kidding :) ).
4. Operations Management.
5. MOM = Manufacturing Operations Management
6. PLM = Product Life-cycle Management
7. MPM = Manufacturing Process Management
8. Six Sigma
9. Lean
10. APQP
11 ... (you are welcome to add)

Lots of these "Management" concepts are so broad, that sometimes I think that I theoretically might as well could put it under Human Resource Management (HRM), though OEE of course is about equipment.

So does it differ depending on which kind of company we talk about and which consultants they have used? Is it fair to state that OEE is mostly related to one or two of them, is there a correct answer? Or perhaps OEE just belong to its self...?
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Jen Kirley

Quality and Auditing Expert
Staff member
Good day Mikael,

Mettler-Toledo's white paper on OEE
describes the metric in terms of tracking value-added productivity of equipment, with considerations of labor, process performance and quality. That means many of your suggested programs could contribute.

Pro: the OEE metric offers a way to connect cause of "soft" factors such as personnel performance with the effect in terms top managers and accountants can appreciate.

Con: the OEE metric can hide the cause within a combination of data, unless analytical capabilities are maintained to recognize and isolate the contributions of key contributing factors.

I hope this helps!


Quite Involved in Discussions
Thanks I will have a look at the link :)

"..."soft" factors such as personnel performance" ??? Isnt that more like OLE?

Concerning the con, do you have a good example?
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Jen Kirley

Quality and Auditing Expert
Staff member
It is common to include changeover and break down in the OEE's availability factor. But the reasons for prolonged changeover or break down would need to be understood. Personnel availability and/or training could be "soft" sub-factors.

That is why OEE could be viewed as the temperature gauge on an automobile dashboard. It can indicate if the engine is running hot or cool, but the reason why requires diagnostics.


Quite Involved in Discussions
ah, I believe too that is what KPI does :)

It is kind of off-topic, but do you think that a manual labour/personnel production line could be seen as an Equipment and thereby use OEE? Or is that what "OLE" is about?

Also do you think it makes sense too combine OEE and FMEA?

Jen Kirley

Quality and Auditing Expert
Staff member
Productivity is the outcome of the process, both automated and manual.

WorkFlow describes it as the simple availability, performance and quality factors. Vorne Industries goes into more human performance detail in their suggested calculations. Its example suggests how a manual process might be calculated. It is interesting, but I wonder if many organizations do performance measurement that way.

OEE is an indicator only, and does not describe what caused the data to be what it is. An FMEA is used to understand the factors that can affect the number shown as OEE.


A Sea of Statistics
we use it as part of the APQP process to establish the suppliers ability to meet their agreed to daily tooling capacity or the units/day as stated in their PO/contract.....each time there is a "change" to their manufacturing process that affects that suppliers installed capacity, the OEE is calculated as part of the larger production demonstration run or run at rate. Hope this helps...
OEE is KPI used in Operations Management of usually manufacturing environment, but can be used elsewhere too. I?ve used it as KPI metric for Maintenance and as tool to analyse deviations between shifts/workforce etc. It is very usefull tool if properly used.

Bev D

Heretical Statistician
Staff member
Super Moderator
not sure what you mean? OEE is a metric and FMEA is a method.
you could use FMEA along with other tools to help create a process that has a better OEE. is this what you are getting at?
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