A tool used to quantify manufacturing productivity by evaluating equipment performance. It analyzes three key factors: availability, performance, and quality. The result is a percentage score reflecting how effectively a manufacturing operation is running relative to its designed capacity. For example, if an automotive assembly line has an equipment effectiveness score of 85%, it indicates that the equipment is performing at 85% of its full potential, considering downtime, speed losses, and defects.
This assessment is vital for identifying areas of waste and opportunities for improvement within production processes. By understanding the drivers of low equipment effectiveness, manufacturers can strategically address issues such as unplanned downtime, slow cycle times, and product defects. This results in increased production output, reduced costs, and improved overall operational efficiency. Originally developed as part of the Total Productive Maintenance (TPM) methodology, its application has expanded to various industries as a core metric for operational excellence.
