Performance measurement is a big thing to do and also important a lot. It does not only help us to know about our quality of work, but we can also experience improvements by using correct measures. Thus today we will have some interesting discussions about that tool which not only the perfect one but also very effective.
In our previous blogs we have already discussed about the various tools of quality management and this one will be no exception. OEE (Overall Equipment Effectiveness), being one of the prime tools for assessing the quality of a company, should never be ignored in any situation. So here the question comes – what is OEE?
OEE actually measures the true productivity percentage of a company. Why I am saying ‘true productivity’!! Well, when a company is manufacturing a product, it is taking a certain period of time, which may not be fully fruitful. What I mean to say is that at times, the machine being used for the manufacturing might end up with a defective product. And as you know, we don’t count disputed manufactures as true productions. So the percentage of the true production is measured by OEE. It calculates the time that the machine is consuming and the end results which help the companies to measure their quality of work.
OEE uses three major parts of the equipment being used for the manufacture:
- A for Availability
- P for Performance
- Q for Quality
Now, let’s take a look at a very relatable example of recent times which will make our understanding about these three factors better:
Recently a very popular Instant noodle brand encountered huge defects in their product after they were released to the market. Some non edible things were found in the packaging which decreased its sale as well the reputation to a great extent. Applying OEE the Instant noodle brand found out all the disputes and why it is happening. And they recovered with utmost speed. But how did they do that!!
The Instant noodle brand first started checking the Availability of their manufacturing machine – if they are running according to the planned time span or not because at times, machines may not work like that. It can experience sudden stoppages which can either done by the company itself or there may have come some accident. But as the defect was not coming from running time, they went on examining the second factor.
Performance said there is nothing wrong with the speed. The machines are running on time and with desired speed. And they are producing the product with no delay. Then, at last remains the last factor and they checked that out.
The Quality, i.e. the end result, was not right. The packaging machine at a plant had issues. As they drilled down to the actual reason, they also found the solution to it and started recovering from this bad phase.
So, if OEE had not measured the actual defects and its percentage, it would not be very simple for the Instant Noodle Brand to figure out how and why it is happening. So although applied differently with the help of OEE and TPM Nestle was able to track and solve the problem.
Now I will tell you the relation between IATF and OEE. It is quite simple. IATF is there to help the companies in major improvements, detecting the faults and let the companies meet specific customer requirements.
And according to the explanation of OEE, it aids the companies to measure their percentage of defects and quality products.
So it’s quite obvious that both these tools lend their hands in managing the quality of a company. You can get away from the negatives, you can keep on improving the quality of your company and thus you can become the one stop solution for your customers because they will receive just the perfect product they are searching for.
OEE is about equipments, Manufacturing lines and Plant. It has a profound impact on Quality as the formula itself contains number of correct parts being produced. So a good OEE number also tells us that the equipment are producing good quality parts.