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?

HELPS YOU INSTANTLY

MAKE MORE WITH WHAT

YOU HAVE

OEE-Benefits

OEE- What is it

OEE is just a Best Practice that

helps you monitor and improve

the effectiveness of your

processes

OEE- Guide

OEE

Factors

Six Big

Losses

World

Class OEE

Formulas OEE

Example

Visual

OEE

OEE-Factors

Plant Operating Time

Plant Operating Time

Operating Time

Net Operating Time

Fully Productive Time Quality

Loss

Speed

Loss

Down Time

Loss

Planned

Shutdown

Time Available

i.e. LMI Mex

10hrs

Subtract

Lunch,Breaks,

Maintenace

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

OEE-Factors

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

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

This factor can then drill down into productivity losses

OEE-6 Big Losses

Those

productivity

Losses are

called the SIX

BIG LOSSES

Six Big Loss

Category

OEE Loss

Category Event Examples Comment

Breakdowns Down Time Loss Tooling failures

Unplanned maintenance

General breakdowns

Equipment failure

Set Up and

Adjustments Down Time Loss Setup/changeover

Material shortages

Operator shortages

Major adjustments

Warm-Up Time

Small Stops Speed Loss Obstructed product flow

Component jams

Misfeeds

Sensored blocked

Delivery blocked

Cleaning / Checking

Reduced

Speed Speed Loss Rough running

Under nameplate capacity

Under designed capacity

Equipment wear

Operator inefficiency

1.Startup

Rejects Quality Loss Scrap

2.Production Rework

Rejects In process damage

In process expiration

Incorrect assembly

Anything that prevents

the process running

normal speed

1.Rejects during warm

up, start up and early

production

2. Rejects during

steady-state

production

Typically includes stops

that are under five

minutes

This loss is adressed

through set up

reduction projects

There is flexibility to

decide between a

breakdown and small

stop

OEE-World Class

OEE Factor World Class

Availability 90.0%

Performance 95.0%

Quality 99.9%

OEE 85.0%

Accepted World Class

Performance per Factor is:

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

•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

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

OEE-Example

Availability =

= 433/520

= 0.8326923 83.3%

Performance =

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

= 0.7417629 74.2%

Quality =

18,848 / 19,271

0.9780499 97.8%

OEE =

.8326 x .7417 x .978

= 0.6041026 60.4%

Good Pieces/ Total Pieces

(Total Pieces/operating Time)/Ideal Run Rate

Operating Time/Planned Production Time

Availability x Performance x Quality

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