PRODUCTION AND

OPERATIONS MANAGEMENT
LECTURE 10

LECTURE 10: MODULE 2

PRODUCTIVITY

OEE/OPE FRAMEWORK

OEE/OPE
OEE overall equipment effectiveness.
OPE overall people effectiveness.
O.E.E/OPE framework counts all the time that you
have available on a resource (machine or human)
. it starts with this time, and then identifies all the
se things at the resource that are waste. By takin
g these pieces out of the available time, your left
with time that the resource is really productive
In short Its a fraction of time that the resources
adds in value.

Overall Equipment Effectiveness

12/6/15

Improvement potential
> 3x

12/6/15
12/6/15

12/6/15

Break- Change- AvailTotal

overs*
able
planned down
time
up-time

Idling
and
minor
stoppages

Reduced
speed

Net
operating
time

Prof. Christian Terwiesch

Defects Start-up OEE

Source: McKinsey

OEE of an Aircraft
At gate or in
maintenance

365*24h

Block time

Not booked

Taxi and landing

Total time
In a year

Seat is
In the air

Prof. Christian Terwiesch

Value add
(about 30%)

Overall People Effectiveness

Time booked
For appointments

Prof. Christian Terwiesch

Time with
patients

Activities that dont

have to be done by MD

Patients that dont

have to see MD

Time in practice

Cancelations

Time not
booked

Sick

Vacation
Total paid time

True value
add time

Source: Marcus, Terwiesch, Werner

PRACTICE PROBLEM

PRACTICE PROBLEM