Abstract

This article aims to clarify important insights on a well-known key performance indicator in production processes: overall equipment effectiveness (OEE). One insight is the telescopic nature of this indicator, another about setting rational targets and another about making action plans that ultimately improve the bottom line: increasing throughput, reducing operating expenses and connecting flow, thereby reducing tied-up money in inventories. The pipes and puddles framework assists process owners in directing their action plans toward improvement beyond a short-sighted view that might be misled toward achieving 100% OEE.