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  • Oee 1

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    OEE is an indicator used to measure efficient equipment use, calculated by multiplying availability, yield, and performance percentages. The document provides an example OEE calculation of 21.6% and explains the value of a 1% increase in OEE could result in approximately $16 million more in sales and $8 million positive impact on the company's contribution margin. Maintaining high OEE is important as it allows for reductions in capital expenditures while performing the same amount of work, leading to higher profits.

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    OEE 1

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    OEE is an indicator used to measure efficient equipment use, calculated by multiplying availability, yield, and performance percentages. The document provides an example OEE calculation of 21.6% and explains the value of a 1% increase in OEE could result in approximately $16 million more in sales and $8 million positive impact on the company's contribution margin. Maintaining high OEE is important as it allows for reductions in capital expenditures while performing the same amount of work, leading to higher profits.

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    5 views1 page

    Oee 1

    Uploaded by

    roysumit8888
    OEE is an indicator used to measure efficient equipment use, calculated by multiplying availability, yield, and performance percentages. The document provides an example OEE calculation of 21.6% and explains the value of a 1% increase in OEE could result in approximately $16 million more in sales and $8 million positive impact on the company's contribution margin. Maintaining high OEE is important as it allows for reductions in capital expenditures while performing the same amount of work, leading to higher profits.

    Copyright:

    © All Rights Reserved
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    of 1

    OEE

    OEE Important to Us?

    OEE is an indicator of efficient use of equipment.


    OEE % = % Availability X Yield X Performance

    21.6 % = 62.3 % X 97.0 % X 35.7 %

    % Availability = % of 24/7 that are working hours, Yield = Final Pass rate, Performance
    X = (Rate Efficiency Operational Efficiency) ;
    % Working efficiency as compared to its theoretical top speed (both Small Stops and Slow Cycles)

    What is the value of 1% of OEE to Nexperia?


    Assuming that the amount of work is held constant, a 1% increase in OEE would amount to ~16M$ of
    additional Sales impact and ~8M$ positive contribution Margin impact on Balance Sheet.

    Why is this Important?


    Reductions in capital expenditure while performing the same amount of work allows company to have
    higher profits and/or gain more work.

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