OEE integrates the main performance indicators: Productivity, Quality and Operational Readiness (Availability). OEE is measured in percentage and is included in 38 production KPIs which are in the DSTU ISO 22400 standard.
OEE is the most popular KPI among manufacturers. The reason for this popularity is a direct link with the financial and economic KPIs. By regulating OEE, engineering managers and specialists can directly influence profitability and payback ratios. In turn, achievement of a better level of OEE is possible through control and improvement of the three components that are part of it.
In the context of establishing and monitoring best industry practices, OEE indicators are fairly well recorded in the world level. The best companies achieve an OEE rate of 85-90%, but the number of such advanced companies in the world is no more than 5-10%. The vast majority of companies still have OEE at 60%, and this figure in Ukraine is at 45-50%. According to APPAU, most companies in Ukraine report the same typical errors in the accounting of OEE, among which the lack of automated accounting and monitoring of KPI is the first reason.
In summary, full production integration does have its challenges. However, to achieve high operational efficiency, it’s mandatory to first have connected systems. After that, you have a foundation for digital transformation – and can not only accurately monitor KPIs such as OEE but also optimize to the highest level for your industry.
Learn how the pharmaceutical company Yuria-Pharm chose a strategy of full integration and a Manufacturing Operations Management (MOM) solution with results that include OEE increasing by 20%, particularly due to the reduction of productivity losses by 70% and downtime by 80%. Read Yuria-Pharm's story.