OEE stands for Overall Equipment Effectiveness. It is a metrics which is used to understand how effective a manufacturing process is utilized.

OEE is determined by three factors

  • Availability
  • Performance
  • Quality

Mathematically OEE = Availability X Performance X Quality.

OEE

Availability: Availability is calculated as the ratio of Operating Time to Planned Production Time. Availability takes into account Down Time Loss, and is calculated as:

Availability = Operating Time / Planned Production Time

Operating time is the planned production time less downtime loss.

Operating Time= Planned Production Time – Down Time

Planned Production time is the total shift time the equipment available for production less Planned stoppage time.

Planned Production Time= Shift Length – Planned stoppage time

 

Performance: Performance takes into account Speed Loss, and is calculated as:

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

Ideal run rate is the maximum expected production quantity as per the cycle time.

Quality: Quality takes into account Quality Loss, and is calculated as:

Quality = Good Pieces / Total Pieces

 

Example for calculating OEE

            Description                   Data
Shift Length8 hours = 480 min.
Planned maintenance for 5S and TPM30 minutes
Down Time47 minutes
Ideal Run Rate60 pieces per minute
Total Pieces19,271 pieces
Reject Pieces423 pieces

 

Calculating Availability

Availability= Operating Time / Planned Production Time

Planned Production Time= Shift Length – Planned stoppage time.

= 480 – 30 = 450 minutes

Operating Time= Planned Production Time – Down Time

= 450 – 47

= 403 minutes

Availability= Operating Time / Planned Production Time

= 403 / 450

= 0.8955 or 89.55%

Availability = 89.55%

 

Calculating Performance

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

= (19,271 pieces / 403 minutes) / 60 pieces per minute

=   47.81 / 60

= 0.7969 or 79.69%

Performance = 79.69%

 

Quality   = Good Pieces / Total Pieces

= 18,848 / 19,271 pieces

= 0.9780 or 97.80%

Quality   =  97.80%

 

OEE   = Availability x Performance x Quality

= 0.8955 x 0.7969 x 0.9780

= 0.6979 or 69.79%

OEE   = 69.79%

 

Overall Equipment Effectiveness of the above indicated process from which the data is used for calculation is 69.79%.

From the above data the area needed for focus to improve the OEE is performance since it is having the lowest value compared to availability and quality.To improve the performance the speed loss has to be reduced. By doing it the OEE of this process can be improved.

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