Latest Update: 12.11.03  
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  Implementing OEE: A guide for managers
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Most organisations need another key performance indicator like they need a hole in the head so where is the real added value that makes it worth the effort to use Overall Equipment Effectiveness (OEE)?

To understand the value of OEE it is important to be clear about what it OEE is designed to measure.

Effectiveness measures how well a process has performed compared to its full potential.  The reality of the shop floor is that there are many things that can go wrong over the day so for lots of reasons we generally don’t achieve the full potential of our assets.  In other words OEE presents in a single figure, how well we have managed the resources at our disposal.

Organisations that use OEE well are those that also adopt OEE focussed improvement tools to systematically reduce effectiveness losses  Typically for organisations introducing OEE improvement, annual gains of 10 to 15% can be achieved. 

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