OEE: The Three-Tier model

The Maintenance and Engineering Journal will be running an online series of 3 articles using the recently published book, TPM – a foundation of operational excellence, as the reference guide.

The first of the series explores the myths and realities about the central performance metric of TPM called Overall Equipment Effectiveness (OEE).

It includes the solid and proven idea of a tiered three-level “Site Performance Contract”, whereby responsibility and accountability can be aligned to the right action level in the organisational structure to deliver sustainable improvement in the supply chain.

The first level is the top down, target driven Leadership tier – which we call “Supply Chain Effectiveness”. The middle tier is the Management tier – referred to as “Door to Door Effectiveness”. A bottom up third tier called “Floor to Floor Effectiveness” focuses on the OEE’s six classic equipment-based losses for the shift-based teams of operator and maintainers.

By taking this cascaded three-level approach it is possible to clearly allocate the responsibility for driving out waste in all its forms. While the pinch point or weakest link in the supply chain is often equipment-related, there is little merit in improving flow by attacking the classic six equipment losses if the upstream inflows and downstream outflow losses to that specific equipment are inhibiting the total value stream flow.

To read the full article visit the Maintenance & Engineering Journal article.