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  1. The first observations
  2. The initial Assignment
  3. The OEE Industry Standard Endeavour
  4. OEE Industry Standard v1.0
  5. OEE Industry Standard v2.0
  6. OEE Industry Standard v2010
  7. The OEE Foundation
By Arno Koch
1 The first observations The history of the OEE Industry Standard starts at the end of the 90’s when I noticed as sr. Lean/TPM implementer during OEE implementations around the globe some patterns;

  1. Operators, line managers and management all either want to compare equipment, or are afraid that this will be done. I concluded that, although OEE is primarily a shop floor tool, not meant to benchmark, it should be certainly possible to use certain elements as useful reference information considering it is done in the right way.
  2. Setting up the definitions for gathering OEE data brings up the same discussions over and over again. Larger companies all seem to struggle -most political- fights about how OEE is defined, one wants to include PM, the other takes it out, and the third takes it out under conditions… thus giving fear on the shop floor that ‘unfair comparisons’ are done.

Those issues reoccur and since for every problem there is only one optimal solution I started to wonder if it would be possible to define a kind of an ‘Standard OEE definition’, that would make sure that at least within the same company everybody uses OEE in the same way. When talking about ‘Availability’ at least it should be clear that everybody in- or excludes the same issues (i.e. breaks, PM, etc).

However, such is life, there was not enough time to dig into this matter, and it just remained observations and thoughts…

2 The first Assignment … until one day a large multi-site manufacturer concluded that the multitude in different KPI’s, OEE measures, -definitions and applications should be normalized and standardized throughout the company. In 1999 I was given the assignment, to come up with a standard for the definitions and application of OEE per type of equipment.

  • OEE registrations per machine-type where gathered and the common denominators were researched.
  • All possible OEE elements where grouped in a logical way.
  • All ‘negotiable’ elements where clearly defined.
  • Every definition of time was categorized in groups as ‘Production’, ‘Failure’, ‘Idle’ or ‘Unscheduled’.

Fortunately (!) there where extreme different types of equipment in ths company, stretching from packaging lines to cement ovens and even huge harbor cranes.

Many time-categories were found at many machines, in fact, after renaming all the categories of time in a same way (like Lunch – Break – Pause etc.) most of the definitions where more equal than different!

3 The OEE Industry Standard Endeavour This standard definition set seemed to be applicable for more OEE users. So I investigated data of over 1000 different machines in many different environments and searched for patterns.

  • All more or less equal names where renamed in the same manner and grouped in a logical way.
  • ‘Negotiable’ or ambiguous elements where given a clear definition.
  • Every new found definition of time was assigned to one of the main groups ‘Production’, ‘Failure’, ‘Idle’ or ‘Unscheduled’.

At first it was expected to become a huge document since the equipment investigated was varying from refineries to cement- and paper mills to beer breweries, food processors, drilling, stamping, welding, plating…. name it and is was there.

It was surprisingly how the whole lot of it fitted on a couple of A4 sheets of paper!

This concept was brought to some experienced OEE implementers and every element was discussed. Every time there was a discussion, all arguments where collected the Best Of Best argumentation was searched and formulated, considering it had to be applicable on ANY other comparable situation!

My objective was to have an OEE standard definition available, where every choice in the definition is companioned with very reasonable and strong argumentation, that could not be refuted within the spirit of TPM and Lean Manufacturing.

4 OEE Industry Standard v1.0 The first version of the OEE Industry Standard was published October 31, 2001. Basically this version has only been extended in the latter versions. It was published in a forum where it was free to access and to discuss.
5 OEE Industry Standard v2.0 Until 2003, parties from very different backgrounds have joined the forum and several ‘power-users’ tried hard to ‘doubt’ every element of the standard; yet the arguments given by the first group of forum-members stand firm. However we gathered some additions and clarifications which are added to the new version 2 of the OEE Industry Standard.

The standard was published on the internet in English, German and Dutch, and remained unchanged for several years.

6 OEE Industry Standard v2010 The longer OEE is being applied and the more losses become visible, the more new insights for refining the definitions are gained. At the end of 2010 I was asked by several parties to review and update the standard. I decided to insert all new insights known so far and open it to the public ones more for discussion on a new platform:

And so the OEE Industry Standard v2010 is born, merely as a concept for knowledge sharing.

7 OEE Industry Standard v2011 It is the goal to grow the v2010 into a longer lasting v2011 by end of the year 2011.
8 The OEE Foundation At the end of 2010 the OEE Foundation was initiated to be the home of the standard. An independent and knowledgeable ‘board of advisors’ will protect the integrity of the standard.
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