OEE (Overall Equipment Efficiency)

Overall Equipment Effectiveness (OEE) is a critical metric in manufacturing that measures how effectively production equipment is utilized. It evaluates three key factors: Availability, Performance, and Quality, providing a comprehensive view of production efficiency.

What Is OEE?

OEE is a standardized method for assessing the efficiency of production processes. It is calculated by multiplying three factors:

1. Availability: The percentage of scheduled production time that equipment is operational (excluding downtime).
2. Performance: The speed at which equipment operates compared to its maximum potential (accounting for slowdowns or minor stoppages).
3. Quality: The proportion of defect-free products produced compared to the total output (excluding rework or scrap).

A perfect OEE score is 100%, indicating no downtime, no speed losses, and no defects. However, most manufacturers aim for an OEE of 85% or higher, which is considered world-class.

OEE in Manufacturing

Implementing OEE provides manufacturers with actionable insights to improve operations:

• Increased Productivity: Identifies inefficiencies and bottlenecks in production processes.
• Reduced Downtime: Highlights unplanned stoppages and maintenance needs, enabling proactive interventions.
• Improved Product Quality: Reduces defects and rework, leading to higher customer satisfaction.
• Cost Reduction: Optimizes equipment utilization, lowering operational expenses.

It also provides real-time metrics for better production planning and resource allocation.

OEE and IO-Link Wireless

IO-Link Wireless is a cutting-edge industrial communication technology that enables wireless data transmission between sensors, actuators, and control systems. It is designed for harsh industrial environments.

IO-Link Wireless enhances OEE by:

• Real-Time Data Collection: IO-Link Wireless sensors, such as wireless counters, provide real-time performance data, enabling immediate corrective actions to improve OEE.
• Simple Deployment and Retrofit: By eliminating the need for wired connections, IO-Link Wireless simplifies the deployment process, and is especially advantageous when machines require frequent relocations and for machine retrofits, minimizing production interruptions, and reducing deployment effort and cost.
• Improved Flexibility: Its device-agnostic design allows integration with various sensors (digital, analog, or IO-Link), making it adaptable to diverse industrial applications. Since it does not require cabling for communication, it is possible to add sensors required for OEE optimization in hard to reach places and on components in high-speed motion/rotation.
• Enhanced Predictive Maintenance: Continuous monitoring of equipment health helps detect potential failures before they cause downtime, improving availability.
• Seamless Integration: IO-Link Wireless connects effortlessly with OT and IT systems, enabling data flow from the factory floor to cloud-based analytics platforms.

CoreTigo is the leading provider of industrial wireless solutions.  By integrating CoreTigo’s IO-Link Wireless equipment, manufacturers can achieve higher OEE scores, reduce operational costs, and drive smarter production processes.

Frequently Asked Questions About OEE

What is the concept of OEE?

OEE is a measurement of how effectively manufacturing equipment is used. It combines availability, performance, and quality into a single metric to evaluate overall productivity.

What does 85% OEE mean?

An OEE score of 85% is considered world-class manufacturing performance. It means that a factory is operating at 85% of its maximum potential by minimizing downtime, optimizing speed, and maintaining high-quality standards.