OVERALL EQUIPMENT EFFECTIVENESS

BALAKUMAR V

OEE - INTRODUCTIONOEE Formulated By Seiichi Nakajima in the Year of 1988.

OEE is the gold standard for measuring manufacturing productivity.

Measuring OEE is a Manufacturing Best Practice.

The Effectiveness of the Equipment is the Actual Output over the Reference Output.

Equipment Effectiveness Shows how Effectively an Equipment is Utilized.

Overall Equipment Shows the Effectiveness of a machine Compared to the Ideal Machine as a Percentage.

INTRODUCTION OEE is a Lean Manufacturing Tool and Universal Best Practice to

Monitor, Evaluate and Improve the Effectiveness of a Production Process.

The Primary Purpose is to Drive Improved Asset Performance.

The Use Of OEE Helps Improve Performance through Visualizing, Quantifying and Systematically Eliminating Sources of Production Loss.

OEE is the Single Metric for Identifying Losses, Benchmarking Progress and Improving the productivity of manufacturing equipment.

OEE = Availability x Performance x Quality

OEE- GuideOEE

Factors

Six Big Losses

World Class OEE

Formulas

OEEExamp

le

Visual OEE

OEE-FactorsPlant Operating Time

Quality Loss

Speed Loss

Down Time Loss

Time Availablei.e. LMI Mex 24hrs

Subtract•Equipment failure

•Mat. Shortages,•Changeover time

Subtract•Different material,

•machine wear, operator inefficiency

Subtract•Rework time

•Scrap

OEE Goal is to Maximize Fully Productive Time

Plant Operating Time

Operating Time

Net Operating Time

Fully Productive Time

PlannedShutdown

Subtract Lunch,Breaks, Maintenace

OEE LOSS OEE FactorPlanned 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 itstheoretical 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

Six Big LossCategory OEE Loss Category

Event Examples CommentBreakdowns Down Time Loss Tooling failures Unplanned

maintenance General breakdowns Equipment failure

There is flexibility to decide between a breakdown and small

stop

Set Up andAdjustments Down Time Loss Setup/changeover Material

shortages Operator shortages Major adjustments Warm-Up Time

This loss is adressed through set up reduction projects

Small Stops Speed Loss Obstructed product flowComponent jams Misfeeds Sensored blocked Delivery blockedCleaning / Checking

Typically includes stops that are under five minutes

Reduced SpeedSpeed Loss Rough running

Under nameplate capacity Under designed capacity Equipment wear Operator inefficiency

Anything that prevents the process running normal speed

1.Startup Rejects

2.Production Rejects

Quality Loss Scrap ReworkIn process damageIn process expiration Incorrect assembly

1.Rejects during warm up, start up and early production

2.Rejects during steady-state production

AVAILABILITY Availability Shows the Machine available duration for

manufacturing. In Other Words, How Much Time Our Machine is Available for

Manufacturing.Availability takes into account of Breakdown Losses.Downtime Losses Include Events or Incidents that lead to a

Stoppage of planned production for a considerable duration.After Removing Downtime, We can get Exact Operating

Duration of the Machine.

AVAILABILITY There Are Two Types of Downtime ( Planned & Unplanned)Planned Downtime – Lunch & Tea BreaksUnplanned Downtime – Unexpected Things are HappenExample of Unplanned Downtime :

(i) Equipment Failure

(ii) Material Shortage

(iii) Excess Change Overtime

AVAILABILITY Availability =

Available Time – Downtime (planned + Unplanned)

Available Time

480 – ( 50+30) 480 – 80 480 480

400 480

.833 x 100 = 83.33%

=

=

=

=

PERFORMANCE Performance Shows the excess time taken for manufacturing

as compared to Standard Operating Timing.

The Performance takes into account of Speed Losses.

The Speed Losses Includes any factor that leads to operating production with more cycle time than maximum permissible.

PERFORMANCEExamples of performance Losses :

(i) Low Speed of Part Loading / Unloading

(ii) Fatigue of the Operator

(iii) Excess Cycle Time in Manual Work, Etc…

PERFORMANCE PERFORMANCE =

Cycle Time x Produced Qty Available Time

2 x 180 400

360 400

= =

= 0.9 = 0.9x100 = 90%

QUALITY Quality Shows the Good Quality of Product.It takes into account the losses (loss due to the Manufacturing

of a bad part.Quality loss can only be present due to the manufacturing of a

defective part or Non-Conforming part.

QUALITY Availability =

Produced Qty - Scrap Qty Produced Qty

360– 9 351 360 360

.975 x 100 = 97.5%

= =

=

OEE

OEE = Availability x Performance x Quality OEE = 0.833 X 0.9 X .975

= 0.73095 X 100 = 73.1 %

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

Questions1.What is OEE?

2.Who is Derived OEE?

3.When it is Derived?

4.What is the Six Major Losses in OEE?

5.What is the Formula of OEE?

THANK YOU