OEE-Overall Equipment

Effectiveness

Guide
July 2010
 OEE-When to use

1. Does your production have bottlenecks that you

are not aware of?

2. Could one machine be dragging down the entire

facility?

3. Does your equipment have excess capacity that

could be easily and inexpensively tapped?
 OEE-Benefits

HELPS YOU INSTANTLY

MAKE MORE WITH WHAT
YOU HAVE
 OEE- What is it

OEE is just a Best Practice that

helps you monitor and improve
the effectiveness of your
processes
 OEE- Guide

OEE Six Big World

Factors Losses Class OEE

Formulas OEE Visual

Example OEE
 OEE-Factors

Time Available
Plant Operating Time i.e. LMI Mex
10hrs

Planned Subtract
Plant Operating Time Shutdown
Lunch,Breaks,
Maintenace
Subtract
Down Time
Operating Time Loss
•Equipment failure
•Mat. Shortages,
•Changeover time
Speed Subtract
Net Operating Time Loss •Different material, machine wear,
operator inefficiency
Quality Subtract
Fully Productive Time Loss •Rework time
•Scrap

OEE Goal is to Maximize Fully

Productive Time
 OEE-Factors

The following table is a review of the interpretation of the core concepts.

OEE LOSS OEE Factor

Planned Shutdown *Not part of the calculation
Down Time Loss *Availability=Ratio of Operating Time to Planned Production Time
(Operating Time=Planned Production Time-Down Time Loss)
*100% Availability means the process has been running without any recorded stops
Speed Loss *Performance= Ratio of Net Operating time to Operating Time
(Net Operating Time=Operating Time-Speed Loss)
*Interpreted as Ideal Cycle Time to Actual Cycle Time
*100% Performance means the process has been consistently running at its
theoretical maximun speed
Quality Loss *Quality=Ratio of Fully Productive Time to Net Operating Time
(Fully Productive Time=Net Operating Time-Quality Loss)
*Interpreted as the ratio of Good Pieces to Total Pieces
*100% Qaulity means there have been no reject or rework pieces

This factor can then drill down into productivity losses

 OEE-6 Big Losses
Six Big Loss OEE Loss
Category Category Event Examples Comment
Breakdowns Down Time Loss Tooling failures There is flexibility to
Unplanned maintenance decide between a
General breakdowns breakdown and small
Equipment failure stop
Those Set Up and
Adjustments Down Time Loss Setup/changeover
productivity Material shortages
This loss is adressed
through set up
Losses are Operator shortages
reduction projects
Major adjustments
called the SIX Warm-Up Time
BIG LOSSES Small Stops Speed Loss Obstructed product flow
Component jams
Typically includes stops
Misfeeds
that are under five
Sensored blocked
minutes
Delivery blocked
Cleaning / Checking
Reduced
Speed Speed Loss Rough running
Anything that prevents
Under nameplate capacity
the process running
Under designed capacity
normal speed
Equipment wear
Operator inefficiency
1.Startup 1.Rejects during warm
Rejects Quality Loss Scrap up, start up and early
2.Production Rework production
Rejects In process damage 2. Rejects during
In process expiration steady-state
Incorrect assembly production
 OEE-World Class

Accepted World Class OEE Factor World Class

Performance per Factor is: Availability 90.0%
Performance 95.0%
Quality 99.9%
OEE 85.0%

Studies indicate that most manufacturing plants are around 60% performance
in OEE. A world class is considered to be 85% or more.
 OEE-Formulas

Availability= Operating Time / Planned Production Time

Performance = Ideal Cycle Time / (Operating Time/Total Pieces)

Quality = Good Pieces / Total Pieces

OEE = Availability x Performance x Quality

 OEE-Example
Item Data
Shift Length 10 hrs = 600 min
Short Breaks 2 at 10min = 20min
Meetings 30 min
Meal Break 1 at 30 min = 30 min
Down Time 47 min
Ideal Run Rate 60 pieces per minute
Total Pieces 19,271 pieces
Reject Pieces 423

•Planned Production Time= [Shift Length –Breaks] =[600-80]=520min

•Operating Time= [Planned Production Time-Down Time]=[480-47]=433
•Good Pieces= [Total Pieces – Reject Pieces]=[19,271-423]=18,848
 OEE-Example

Availability = Operating Time/Planned Production Time

= 433/520
= 0.8326923 83.3%

Performance = (Total Pieces/operating Time)/Ideal Run Rate

= (19,271pieces/433minutes)/60 pieces per minute
= 0.7417629 74.2%

Quality = Good Pieces/ Total Pieces

18,848 / 19,271
0.9780499 97.8%

OEE = Availability x Performance x Quality

.8326 x .7417 x .978
= 0.6041026 60.4%
 OEE-Visual

It is very important to have performance data

Available and In Real Time to
EVERYONE
Benefits:

•Operators quickly respond to problems

•Gauge to make adjustments that lead to incremental
improvements
•Empowers operators to take immediate action
•Helps monitor plant floor activity in real time