Managing overall equipment effectiveness [OEE] to optimize factory performance

Overall equipment effectiveness (OEE) is the key metric of total productive manufacturing (TPM). OEE monitors the actual performance of a tool relative to its performance capabilities under optimal manufacturing conditions. OEE looks at the entire manufacturing environment measuring, not only the equipment availability, but also, the production efficiency while the equipment is available to run product, as well as the efficiency loss that results from scrap, rework, and yield losses. Analysis of the equipment effectiveness loss mechanisms provides the user with improvement opportunities for the operation. This paper focuses on the use of OEE and major equipment loss analysis to optimize the performance of constraint tools at Fairchild Semiconductor, South Portland, Maine. Factory modeling is a key element of the OEE management process, defining the equipment and process capabilities at the workstation (micro) level, then identifying constraint tools and OEE performance requirements through macro level factory capacity modeling. Also discussed in this paper, is the SEMI productivity metrics standard proposal which defines OEE and loss analysis methods which are consistent with SEMI E10-96 concepts.