What Is Overall Operations Effectiveness (OOE)?
Overall operations effectiveness (OOE) is a metric used to measure the availability of manufacturing equipment along production lines. Unlike its counterpart, overall equipment effectiveness (OEE), which considers only planned production time, OOE measures actual production time, making it a broader measure of equipment performance.
The 3 Factors That Affect OOE
OOE provides insight into how effectively a manufacturing process utilizes its equipment by considering three primary factors. These are availability, performance, and quality:
Availability
Availability measures the percentage of time that the equipment is operational and available for production, considering both planned and unplanned downtime. A score of 100 indicates perfect use of the maximum time available.
Performance
Performance assesses whether the equipment runs at maximum speed when in operation. It takes into account slow cycles, minor stops, and other performance-related issues. A score of 100 indicates flawless equipment consistently operating at top speed.
Quality
Quality evaluates the proportion of good units produced compared to the total units started. It highlights the impact of defects and rework on overall productivity. A score of 100 indicates zero defects across the entire production line.
By examining these elements, OOE helps identify areas of improvement, reduce downtime, and increase production efficiency. In turn, this metric helps businesses optimize their operations, improve maintenance practices, and achieve higher production standards.
The 6 Big Losses in Manufacturing Processes
The six big losses directly correspond with the three major OOE factors: availability, performance, and quality. These issues can indicate capacity problems, reduce productivity and actual production time (whether through unscheduled downtime or other factors), and affect customer satisfaction through poor product quality.
Availability Losses
- Breakdowns: Equipment failures, malfunctions, or unplanned maintenance require corrective actions, which lead to unplanned downtime.
- Setup and Adjustments: Installations, upgrades, changeovers, and other planned maintenance may require pausing a production line. While this is planned downtime, it’s still a loss of availability.
Performance Losses
- Idling and Minor Stoppages: Recalibrations and other minor adjustments result in brief production pauses, affecting actual performance compared to scheduled time.
- Reduced Speeds: Whether from age, use, misuse, or improper maintenance, worn-out components can’t reach maximum speed — meaning the equipment needs more time to produce the same quantity.
Quality Losses
- Startup Scraps: New equipment requires testing and startup phases where the equipment “learns” to produce good-quality products. During these stages, you must expect some loss.
- Product Defects: Tooling and equipment errors, overuse, or ineffective maintenance processes can lead to defective products.
You can prepare for and help prevent these manufacturing capacity losses with OOE calculations.
How To Calculate Overall Operations Effectiveness
Calculating OOE first involves calculating availability, performance, and quality. Then, the three factors are multiplied to get the total OOE calculation:
OOE = Performance X Quality X Availability (Actual Operation Time/Machine Uptime)
A higher OOE score indicates better performance, while a low score indicates room for improvement.
OOE vs OEE
While both OOE and OEE are vital metrics for assessing equipment performance, they differ in scope and application.
Overall operations effectiveness (OOE) considers all available time, including both planned and unplanned downtime. It is used for overall assessment of equipment efficiency, taking into account all potential operational periods. It is particularly useful for strategic planning and long-term improvement initiatives.
Overall equipment effectiveness (OEE) focuses only on planned production time, excluding planned downtime such as scheduled maintenance and breaks. It offers a more focused assessment of production effectiveness during operational periods. OEE calculation is used for more immediate, day-to-day operational analysis, focusing on optimizing production during planned working hours. It helps in identifying and addressing short-term inefficiencies.
In essence, while OEE provides a snapshot of operational efficiency during production hours, OOE offers a holistic view of equipment effectiveness, considering the entire time frame of equipment availability.
Total Effective Equipment Performance (TEEP)
OEE measures with planned production time, while OOE measures using actual production time or operating time. But what about allpotential time, inclusive of scheduled, actual, and unscheduled time? That’s where TEEP comes in.
TEEP takes all available time in a given day, week, month, or year into account. For example, instead of measuring performance against a plant’s hours of operation or shift times, you measure in the context of a 24-hour cycle. It scales out to 7-day weeks (versus 5-day workweeks), 365-day years, etc.
The calculation for TEEP is the same as the OOE calculation but with one exception: for TEEP, availability is calculated as a percentage of the total available time in the day/week/month.
OOE = Performance X Quality X Availability (where Availability = Actual Operation Time/Machine Uptime)
TEEP = Performance x Quality x Availability (where Availability = Actual Operation Time/Available Clock Time)
Of course, it’s not realistic to operate your plant and equipment 24 hours per day, seven days per week, 365 days per year. But TEEP can help highlight missed opportunities and areas for improvement, unlocking a more robust data-driven decision-making process.
What’s the Difference Between Effectiveness vs Efficiency?
While effectiveness and efficiency are similar, they aren’t quite the same.
Operational effectiveness relates to quality. It tracks whether you’ve achieved a goal and produced the result you aimed for.
Operational efficiency considers quality, too. But it differs from effectiveness because it includes the way in which you achieved the goal. To achieve a goal efficiently is to do so without excess time, effort, or resources.
Benefits of Tracking and Improving OOE
When you measure OOE, you can take data-driven steps to improve effectiveness throughout your plant.
OOE measurements change over time with operational improvements. When you track operational effectiveness, you can use that data to make more informed decisions.
Following OOE best practices enables teams to meet sustainability goals, production benchmarks, and other KPIs. You may also see improved efficiency as a result. Assessing availability, performance, and quality to improve effectiveness will also help you spot opportunities to become more efficient.
Plus, your team may become more productive through OOE tracking. Effective operations produce more with fewer resources.
6 Tips for Improving Overall Operations Effectiveness (OOE)
Improving overall operations effectiveness involves targeted strategies that enhance availability, performance, and quality. Here are some actionable steps to boost your OOE:
- Enhance preventive maintenance: Regularly scheduled maintenance helps prevent unexpected equipment failures and reduces unplanned downtime.
- Improve operational practices: Train operators to use equipment correctly and efficiently. Standardizing operating procedures can help minimize performance variability and ensure maintenance teams are on the same page.
- Invest in quality control: Implement rigorous quality control measures to reduce defects and rework. This may involve using statistical process control (SPC) to monitor and control production processes.
- Utilize real-time monitoring: Install sensors and monitoring systems to track equipment performance and detect issues early. Real-time data can inform decision-making and help teams respond quickly to problems.
- Optimize production planning: Balance production schedules to maximize equipment utilization and minimize idle time. Using lean manufacturing principles to streamline production processes can assist with optimization.
- Implement continuous improvement programs: Foster a culture of continuous improvement by encouraging feedback and suggestions from employees. Regularly review and analyze OOE data to identify trends and areas for improvement.
By focusing on these areas, organizations can systematically improve their OOE, leading to enhanced efficiency, reduced costs, and higher overall productivity.
Improving on OOE With a CMMS
A computerized maintenance management system (CMMS) is a software solution for tracking and improving OOE. It provides comprehensive features that streamline maintenance operations and enhance reporting capabilities.
Here are several key features that can help your team improve OOE:
- Centralized data management: A CMMS centralizes maintenance data, including work orders, equipment history, and performance metrics. This centralized repository makes it easier to track and analyze OOE over time.
- Automated scheduling and alerts: A CMMS automates the scheduling of preventive maintenance tasks based on predefined criteria or real-time data. Automated alerts notify maintenance teams of upcoming tasks, reducing the risk of missed maintenance.
- Real-time monitoring and reporting: Advanced CMMS systems offer real-time monitoring of equipment performance through IoT sensors and integration with other systems. Real-time data provides immediate insights into OOE and helps in making timely decisions.
- Comprehensive reporting: The software generates detailed reports on various aspects of equipment performance, including availability, performance, and quality. These reports can be customized to meet specific needs, providing actionable insights for improving OOE.
- Predictive maintenance capabilities: A CMMS with predictive maintenance features can analyze historical and real-time data to forecast potential equipment failures. This proactive approach helps in scheduling maintenance before issues arise, improving OOE.
- Integration with other systems: A CMMS is a powerful tool designed to integrate with ERP, MES, and other enterprise systems, providing a holistic view of production and maintenance activities. This integration enhances decision-making and strategic planning.
Using a CMMS for reporting on OOE allows organizations to leverage technology to optimize maintenance practices, improve equipment efficiency, and achieve better overall performance. By providing real-time insights and comprehensive analytics, a CMMS helps maintain high standards of equipment effectiveness.
Want to learn more about what a CMMS can do for your organization? Speak to a specialist or try a free demo of eMaint CMMS today.