Optimizing OEE: an Emerging Metric Manufacturing Using the Overall Equipment Effectiveness Metric (Technology‪)‬

Widely used across many plants, the Overall Equipment Effectiveness (OEE) metric is typically employed to track losses in availability, performance efficiency and quality. Its initial emergence, alongside that of the Deming Cycle, occurred in the 1950s, which saw it develop from the Japanese Quality Revolution. Based on the 'scientific method,' the Deming Cycle demanded the collection of data to identify and characterize the problem requiring solution. OEE percentages thus became a metric used to compare current equipment performance with a standard, which came to be known as "world class OEE," defined as a measure of 85% equipment effectiveness or above. A further major emergence in the 1980s resulted in OEE becoming one of the more important and frequently used performance management metrics. Its initial purpose of identifying the major losses in equipment efficacy and reliability meant that the early Toyota Production System focused on eliminating waste to reduce cost. Calculating OEE