Manufacturing and other industrial operations are typically familiar with measuring OEE, but there is often confusion about how to measure, where to measure, the rate to use and other issues related to its measurement. For example, our experience is that its measurement is often flawed, e.g., reporting 105% OEE on a given line, a physical impossibility, or using availability as a substitute, or using “run time” as an equivalent measure. None of these are correct. In this podcast, we’ll be reviewing OEE, or overall equipment effectiveness, including:

· A definition of reliability that requires measuring OEE

· How measuring OEE fits into a broader strategy applying TPM, Total Productive Maintenance

· The elements of the measurement

· Details of its components

· How to determine the maximum sustainable rate

· Where to measure OEE in a complex system

· The importance of focusing on managing the losses, not the absolute number

· The difference between asset utilization and OEE

· Differences between Nakajima’s approach and a more comprehensive measure

· And finally, a review of several industrial operations where it does not apply