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7. Why are there several (OEE) Effectiveness KPIs?

Q: (Why) do we need different Effectiveness KPI?

Arno Koch •    When the OEE Industry Standard team started, there were many similar discussions and argumentations heard.

A basic statement was: OEE measures the effectiveness of a machine, the equipment.

Is OEE a KPI for Operations Effectiveness?




If well defined, this of course can tell us a lot about how effective the organization uses this equipment. But also about the surrounding equipment and even the supply-chain. However, OEE is not the KPI for “operations effectiveness” or “Asset Utilization”, although it’s loss-structure is an essential part of such KPI’s.



The OEE KPI is a shopfloor tool


The reason for this decision is the principal choice that OEE is a shopfloor tool, a metric that can be influenced by the shopfloor team. Of course, now there are some ‘grey zones’. How far can the span of control of a shopfloor team stretch? And what is the definition of a ‘shopfloor team’?



One dataset serves all!


Nevertheless, using the same (OEE) data, yet stretching the time-frame more or less, can result in a different ‘scope’ that may be interesting to a different audience. Particularly to the operations- and upper management.



To clarify what we are looking at, what scope is used by what audience, we defined some different scopes that are commonly extracted from OEE data.



OEE Industry Standard: Definition – Scope


You will see several different formats of the same loss-structure data set.
I agree this is all a matter of nomenclature, but this diagram shows that we are talking about the same loss-data structure. It is just a matter of reshuffling it in different ratios, for the purpose of gaining focus to different audiences.


OEE KPI ‘s to create a unified language


Important is to create a clear ‘language’ and to use each tool for its most suitable purpose. We want to prevent the ‘abuse’ of tools for different purposes just because it is there and could be used. (You will understand I hate to see Bahco wrenches and pliers in the factory for the same reason.)
Although slightly outside the scope of the OEE Industry Standard, the different ‘scopes’ are part of the standard. However, they were never subject to serious discussions and reviews.



It seems for the new 2020 standard this would be a fine moment to do so. I would like to invite you to review the currently defined scopes and comment them:



  • Are they clearly enough defined?
  • Do they fulfill your needs?
  • Are there already other standards that could be included here?

To do so a dedicated (open) group is started to discuss the standard, http://www.linkedin.com/groups/OEE-Industry-Standard-4246823
I hope together we can further improve the standard. 


See also: OEE – OOE – TEEP


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